The Reykjanes Peninsula is located in the south-western corner of Iceland and is home to Keflavik International Airport and The Blue Lagoon. The peninsula is right on the Mid Atlantic Ridge and in fact The Bridge Between Continents was built out on the edge of it as a symbol of the connection between North America and Europe. This is where the tectonic plates are slowly drifting apart and the area has gone through serious volcanic activity in the past leaving rugged lava fields and steaming hot springs all over. Some of the landscape here looks like straight out of a sci-fi story. When the first astronauts were going to the moon NASA decided to send them here to practice and test equipment . Also some of the films that have been shot in Iceland have used this area as a backdrop for a different planet or some post apocalyptic world.
Keflavik International Airport is situated out on the tip of Reykjanes and was built by the US Air Force during WW2 and the airbase here was operational until 2006 and there is in fact recent talk that it might reopen. The airport has been growing rapidly in the last few years and it is conveniently situated only 45 minutes drive from Reykjavik City. There are quite a few scenic spots here and Lake Kleifarvatn is the largest lake on the Reykjanes peninsula, only a short drive from Reykjavik, and a few minutes from there is Grænavatn Lake as well as the geothermal area Seltún. The steaming vents of this geothermal field smell strongly of the sulfur deposits found all around and in fact due to the geothermal activity which is of course a result of the volcanic activity underground.
The Blue Lagoon is out on the peninsula and is probably the most visited destination in Iceland and for a good reason. The geothermal spa has an earth sea flowing through filled with white silica mud which has been proven to have restorative and healing properties for human skin. Various treatments are also available at The Blue Lagoon depending on what you are interested in and to which level you want to take your visit. The Lava Restaurant and The Moss restaurant are both top end restaurants and cater to individuals and groups alike. The surroundings of The Blue Lagoon are also amazing as they decided to leave a large portion of the 700 year old lava field around it undisturbed and let it become a part of the award winning design of the place.
The Reykjanes Peninsula is also an area frequently used for Northern Lights Tours. The lights occur around a 100 km above ground so a tour is all about finding a clear sky in a dark place and then wait and hope. There are a few good places out here but in order to be on the safe side it is a good idea to travel with experienced drivers and guides which know the good places and understand both the cloud forecast as well as the activity forecast.