With the Schengen agreement, entry into Iceland has been facilitated; nevertheless you should always carry a passport or personal id, which is valid for 6 months after your holiday in Iceland. Luggage can weigh up to 20kg per person.
The currency used in Iceland is the Icelandic Krone ("krona"), ISK.
Widely used are also the Euro/Mastercard and Visa credit cards. In larger towns and airports it is easily possible to get cash through ATM cash machines.
Exchange rate in January 2011: 1 GBP = 180 ISK or 1 USD = 115 ISK. Please check with your local bank before travelling.
There are good bus connections to almost every point of the island. Reykjavik itself has an excellent bus service. There is no train service, but there is a national airline service between Reykjavik, Höfn, Egilsstadir, Akureyri and the Westfjords. The international airport is in Keflavik, 50 km west of Reykjavik.
The regular mobile telephones may be used in Iceland. Up to the highland roaming service is good. Siminn and Vodafone GSM-telephone cards are also available at all gas stations. These two providers cover the biggest part of the island as well as all municipalities of at least 200 inhabitants. There you can also rent MNT mobile telephones, which cover almost all of Iceland including the highland.
Banks are open from Monday to Friday between 9.15 and 16.00. Bank machines (ATM) can be found in the bigger cities. Generally shops are open Monday to Friday from 9.00 to 18.00 and Saturdays from 10.00 to 14.00. The grocery shops "10 to 11" are open the whole day until 11pm every day of the week. Some souvenir shops are also open on Sundays. Tourist information in Reykjavik is open daily from 8.30 to 19.00 (01.05 - 15.09). Between 16.09 and 31.05 it is open on week days from 9.00 to 18.00 and on the weekend from 10.00 to 14.00.
Although the warm Gulf Stream has a positive effect on the climate, you have to be ready for all kinds of weather in general. In summer temperatures vary around 12°-15°Celsius, though they may go as high as 20°C. Rain showers are always possible, even if they do not last long. During the year, Reykjavik's average rainfall is less than that in Munich for example. Temperatures in winter are around +/- 5°C; even though it can be very windy, it is not as cold as generally assumed.
Already in March, the days are longer in Iceland than in middle Europe. The midnight sun can be observed especially well from mid May to mid July during clear nights in the north of the country. From September until March you can admire the northern lights or Aurora Borealis that can only be seen close to the arctic poles. The days during the winter are not as dark as you may assume. In the winter months November to February there are still 5 to 8 hours of daylight.
The Icelandic specialties are tender lamb and fresh fish in all variations. Apart from these you can find something for every taste, whether it is Indian, French, Mexican, Italian or... or... or... With each meal fresh water is served for free, bread on table is also free of charge. Soft drinks, beer and a big variety of wines is served upon request.
Source: Iceland ProTravel