Tourism - Iceland Reykjavik Holiday On Cheap Budget

Baby, it's cold outside, but soaking in the mineral-rich water of Iceland's Blue Lagoon and piling on silica clay all over your body in a lava-field setting is an experience to remember.

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Icelandic musical acts such as Bjork and Sigur Ros enjoy a strong following here, while the atmospheric band, mum, played at many worldwide locations last year.

The fact that Iceland is an exorbitantly expensive place to visit, coupled perhaps with a fear of the unknown, might have deterred Asians from going.

But the dip in its currency's value, with the collapse of its major banks last October, should make you think again.

Granted that it is still not cheap, despite being around 50 per cent cheaper than before, it is now more affordable as a European tourist destination.

Outside the peak season from June to August, a three-star hotel in the capital Reykjavik costs less than 8,500 Icelandic kronur (S$100) per night and a four-star hotel from about 17,500 kronur per night. Iceland is not a member of the European Union and does not use the euro.

With a total surface area of 103,000 sq km, it has plenty of elbow space for its population of only 320,000.

Around 60 per cent of its people live in the capital and its immediate surroundings, which feels relatively empty even with the presence of tourists.

But come weekends, Reykjavik transforms into a funky town.

The central part of the city may spread over an area about twice that of Holland Village, but there are reportedly more than 50 bars and clubs to keep the partying mood going well into dawn.

Nasa, on Austurvollur Square, is not only the largest dance club downtown, but also a live performance space that has, for example, hosted a recent concert by Icelandic electronic group GusGus.

At Cafe Rosenberg, a bar on Klapparstigur renowned for jazz and world music, I had the chance to catch a solo gig by Palmi Sigurhjartarsson, a pianist with the rock group Sniglaband.

Before an appreciative audience, the 90-minute revelry was an eclectic mix of ballads, ragtime music, blues and even a couple of rousing anthems belted out by a 10-man choir.

Slinky dance rhythms, complemented by sweaty bodies, shake up other hip joints such as B5, Jacobsen, Solon and Oliver.

Bear in mind, though, that the party does not start till way after midnight on weekends when clubs stay open till 6am (as opposed to 1am on weekdays).

A spokesman for the tourism office, Visit Reykjavik, says the financial crisis has not quite dampened the partying mood, especially on weekends.

As bar prices are high, people go to the nightspots a little later, after first downing a few rounds of drinks at home. Most nightspots do not impose cover charges, unless it is a special occasion or when a popular band is playing. If there is a charge for entry, it is 500 to 2,000 kronur. A beer or a glass of wine costs around 1,000 kronur, while a gin and tonic can cost more than 1,700 kronur.

Reykjavik resident Shante Shekhanzai, 26, who runs a travel agency, says variety is one of the attractions of the nightlife. "It depends on what you are looking for - posh clubs, clubs with good music, pubs with DJs or dark cosy cafes."

But dress well, she advises, as some venues have a dress code. "Icelanders tend to overdress when going out. But jeans are okay if the rest of the outfit is cool," she says.

On another night, I witnessed some upcoming indie bands rocking the roof off Nylenduvoruverzlun Hemma & Valda, a small but packed cafe on the main shopping drag of Laugavegur.

For a taste of Icelandic music, ranging from established artists such as Emiliana Torrini to newer acts such as Bob Justman, you should check out home-grown music stores, 12 Tonar (Skolavordustigur 15) and Smekkleysa (Laugavegur 28).

You can sample CDs on a sofa, with free coffee served by store assistants.

Listening to Icelandic music such as Sigur Ros' ethereal soundscape, it is hard not to think about how the country's rugged and diverse landscape might have contributed to songwriting inspiration.

No doubt, Reykjavik is charming for its intimate smallness, as well as its gaily painted houses fanning out from its emblematic church, Hallgrimskirkja, with distant views of Mount Esja.

But for the full experience of Iceland, it is essential to venture out of the capital to view the many natural wonders.

A stay at Hotel Ranga, a 11/2-hour drive from Reykjavik, immerses you in the midst of remoteness and relaxation flanked by the salmon-rich Ranga River. The four-star luxury resort, inspired by the design of a Canadian fishing lodge, has had its fair share of musical types checking in, including award-winning Icelandic musician Mugison. Rack rates range from €164 (S$324) for a superior single room in winter (low season), to €750 for a master room in summer (high season).

Not only is this a good base for day trips to South Iceland's waterfalls, awe-inspiring volcanoes, lava fields and glaciers, as well as the black-sand beach near the village of Vik, it is also one of the best locations to observe the aurora borealis or Northern Lights.

This is a natural phenomenon that you can observe in the night skies near the North Pole.

Hotel Ranga's Swedish manager Bjorn Eriksson provides his guests with fairly accurate predictions of aurora sightings. His secret formula: a combination of research, by studying websites of aurora research institutes and weather forecasts, and gut feeling.

Whether it is staring in quiet contemplation at the Northern Lights on a clear night or enjoying Reykjavik's vibrant nightlife and music scene, it is easy to fall in love with the intriguing contrasts that Iceland has to offer.