Iceland has dominated the headline over the past week with the eruption of Eyjafjallajökull volcano, causing chaos for European air travel.

Ironically enough, the eruption, whilst closing airspace in much of Northern Europe, did little to hinder arrivals to Iceland, which has been experiencing something of a tourism boom as a result of the volcano.

Earlier this month, budget Icelandic carrier Iceland Express said that bookings were up 20 percent as tourists flocked to see Iceland's volcanic region come to life.

In total, nearly 500,000 people visited Iceland in 2009, drawn by the stunning landscapes and excellent opportunities for adventure tourism. If current growth rates continue, the Icelandic tourism bureau expects one million visitors a year by 2020.

The majority of Iceland's visitors come from the Nordic countries, followed by the rest of Europe.


Iceland's capital is a tourist hub, if only for the thousands of travelers who then head off to explore the nature in the North and the South. Travelers voted the Reykjavik Centrum as their favorite, praising the location of the hotel and extra services for guests.

1. Hotel Reykjavik Centrum
2. Hilton Reykjavik Nordica
3. Hotel Holt
4. 101 hotel
5. Borg Hotel

North Iceland

Statistically, most visitors to Iceland head for the North, with many passing through the Northern capital Akureyri. Midrange hotels abound here, with low average prices but some comfortable offerings - Hotel Kea pushed Hotel Edda, a school converted into a hotel for summertime use, into second place.

1. Hotel Kea
2. Hotel Edda - Akureyri
3. Hotel Akureyri
4. Hotel Harpa
5. Hotel Nordurland

South Iceland

South Iceland is the next most popular destinations for tourists - and home of the currently notorious Eyjafjallajökull volcano. Selfoss is a popular stopover spot, boasting hotels and entertainment, with travelers praising the accommodation bargains to be found in the town.

1 Fosstun
2 Hotel Hlid
3 Hotel Selfoss
4 Hotel Geysir
5 Fosshotel Nesbud

West Iceland

Borgarnes is one of the oldest settlements in Iceland and is deeply proud of its heritage. Ensku Husin was highly recommended by travelers, earning almost universally good reviews from guests who appreciated its food.

1 Hotel Ensku Husin
2 Icelandair Hotel Hamar
3 Hraunsnef Country Hotel
4 Hotel Borgarnes
5 Guesthouse Milli Vina

Eastern Iceland

Egilsstaðir is one of Iceland's youngest towns but has grown to become the service and trade center for most of central East Iceland. It is the port of call for many European ferries, with travelers describing the top-ranked Icelandair Hotel Herad as one of the good choices in Eastern Iceland.

1 Icelandair Hotel Herad
2 Guesthouse Egilsstadir
3 Guesthouse Eyvindara
4 Vinland Hotel
5 Youth Hostel Husey

Data is taken from millions of independent reviews and rankings surveyed at TripAdvisor taken on April 21, 2010.