Iceland’s northernmost town, RAUFARHÖFN sits on the Melrakkaslétta’s eastern coast some 54km from Kópasker and 10km beyond Hraunhafnartangi. In the 1960s Raufarhöfn was at the core of Iceland’s herring industry, and the town’s salting plant processed more herring than anywhere else in the country, providing seasonal work that attracted a floating population of thousands. Times have changed, however: the 1990s saw the town’s prosperity ebb away as demand for herring dried up and the plant shifted to hiring Polish workers to freeze and export Russian cod to the US. Today the factory limps on freezing fish for export.

In an attempt to breathe new life into Raufarhöfn, the owners of the local hotel (see below) are creating an Arctic version of Britain’s Stonehenge, which they’re hoping will entice tourists to this often overlooked corner of Iceland; narrow-minded locals, however, have even called for the hotel’s owners to leave the village, deriding their plans at every turn. Known as Arctichenge (www.arctichenge.com), the stone circle, which is currently under construction and being loosely modelled on its more famous counterpart, aims to act as a giant sundial to catch and train the long hours of sunshine in this part of the country during summer. Due to be completed within the next couple of years, the structure will be over fifty metres in diameter and three metres high, consisting of dozens of sunports (open windows) and four main gates through which the sun, climatic conditions willing, will shine.

The main road runs straight through Raufarhöfn, with the turning to the harbour and church on the northern side. On this road by the harbour, at Aðalbraut 2, you’ll find the good-value Hótel Norðurljós (465 1233, ebt@vortex.is, www.raufarhofn.is; sleeping bag 1800kr, Kr6000-8000), run by the charming husband and wife team, Erlingur and Ágústa. The only other accommodation is the campsite at Raufarhöfn’s south exit by the swimming pool. In between are the post office (Mon–Fri noon–4pm), bank, and a general store. The town’s only restaurant is at the hotel, with harbour views from its outdoor terrace. The hotel also rents out kayaks (2000kr a day, including all safety gear) to explore Melrakkaslétta’s lakes.