If you like elves and fairies then this is the place to visit. Besides being a place of unspoilt, natural beauty, Borgarfjordur Eystri is also considered to be a central province of the elves in Iceland, where the queen of the elves herself is said to reside. Housed in an old post office where locals tell stories of elves and the young can dress up in elf costumes and beautiful tiaras. Great fun for all elf lovers!

Bakkagerði, Borgarfjörður Eystri, tel. 861 3677, alfheimar.com