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The country with the chilly name is rapidly becoming one of Europe's hottest destinations. Much of Iceland's popularity is due to its natural features, which include glaciers, hot springs, geysers, active volcanoes, portentous peaks and vast lava deserts. Apart from an expansive landscape, it also has a rich history, literature and folklore tradition. However, tempering Iceland's appeal is that its prices are the most expensive in Europe. That doesn't mean it can't be visited on a shoestring, but it does mean that budget travellers will have to spend some time under canvas in order to fully appreciate the country without needing to get on intimate terms with their bank manager.

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