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Akureyri, with a population of around 18,000, is the largest town in Iceland outside the Southwest region, and the unofficial capital of North Iceland.
By car or bus
The city is linked to the rest of Iceland via the Ring Road, the highway that circles the island along the coastline. Buses between Reykjavík and Akureyri are operated by Strætó, while buses from Egilsstaðir and various other towns to the east of Akureyri are operated by SBA and Sterna along with some routes with Strætó.
Akureyri has an airport with flights to and from Reykjavik Airport on domestic carrier Air Iceland several times a day. Air Iceland also has flights from Akureyri to three smaller villages: Grímsey, Þórshöfn and Vopnafjörður.
Seasonal flights between Akureyri and Copenhagen are operated by Iceland Express.
Being Iceland's northern capital doesn't mean Akureyri is a huge metropolis. Although it can get a bit hilly leaving the waterline, walking distances are reasonable for a fit traveller.
Akureyri has a public bus system, called SVA, which is free for all. The buses are not very frequent--each line has a bus every hour.
BSÓ is the only taxi company in town, and they have a taxi rank in the centre of town.
What to see
Akureyri is a very picturesque town with its location by a scenic fjord, eclectic building styles and streets winding their way through gorges. Spend some time walking around the town centre, see the impressive church and check out Listagilið, home to a number of arts and crafts galleries and shops. The tranquil municipal botanical garden, Lystigarðurinn, is worth visiting, as are the several small museums dotted around town.
Note that Akureyri is perhaps picturesque by Icelandic standards, but one may question whether it is a tourist destination in its own right. Tourists to Iceland typically go there because of the splendid scenery, not because of the cities. Akureyri is primarily a local hub, a place to start excursions to more interesting places.
What to do
Akureyri Drama Society (Leikfélag Akureyrar), Strandgata 12. The only professional theatre in Iceland outside of Reykjavík.
Akureyri Swimming Pool (Sundlaug Akureyrar), Þingvallastræti 21. A recently renovated and expanded pool. Two pools for swimming, several hot tubs, a water slide and a childrens pool. Close to the centre of town. 450 kr.
Hof, Strandgata 12. Akureyri's new house of culture, home to the North Iceland Symphony Orchestra (Sinfóníuhljómsveit Norðurlands) and regularly host to other performances.