Which is the favourite European country of UK Holiday makers? Spain? France?

You may be surprised to discover that it is in fact Iceland. That is, according to the Guardian/Observer Travel Awards 2005.

Admittedly, that is perhaps not the most scientific of polls: few of the 27,000 readers of the newspapers who gave their opinions are likely to be the same people who descend annually on Benidorm, Faliraki or Ibiza.

But there must be something in it: Iceland topped the poll with a 96.8 per cent approval rating, after winning it previously in 2003, and coming second (to Slovenia) in last year. Indeed, in 2004, Brits constituted the biggest group of visitors to Iceland, with 60,000 of us heading there.

So what does Iceland have to offer? And does it appeal to anyone other than bearded, sandal-wearing Guardian readers?

Situated in the far north Atlantic, straddling the Eurasian and American tectonic plates, Iceland is nonetheless just three hours away from London if you catch the right flight .

And despite its unpromising name, Iceland is not a land of nothing but ice and snow. Despite 10 per cent of its 103,125 square kilometres of area being covered by glaciers, and despite being on average more than 500 metres above sea level, Iceland's summers and springs are surprisingly warm.

The capital city, Reykjavik, is a bustling, international hotspot, popular with travellers and trendsetters worldwide, and a justly famous nightlife.

But Iceland is a hotspot in other ways. Its position on one of a fundamental geological fault line means that the very land is taking shape before visitors' eyes.

The country has a number of active volcanoes, notably Hekla, and the landscape has been carved into solid rock by the irresistible forces of fire and ice – volcanic eruptions and glaciers.

Indeed, the southern island of Surtsey – named after the Nordic fire-demon Surtur – is the world's youngest, having risen 169 metres out of the ocean as a result of an underwater volcanic eruption in 1963.

Iceland itself has a unique geography. Parts of its uninhabited and uninhabitable central highlands were used by NASA to train astronauts for walking on the moon.

The island is home to incredible fjords, waterfalls and glacial features, as well as renowned lava-powered hot springs. It is this geothermic power which is responsible for Iceland's astonishingly clean environment – providing as it does the best part of the country's power supply.

The surrounding sea is also a major tourist attraction, with whale watching, kayaking and fishing.

Iceland has far more, however, than just the delights of the wilderness, such as great hotels .

Reykjavik offers wildness of a different sort. With 185,000 residents, the capital is a mix of traditional and ultramodern, uniquely Icelandic and effortlessly cosmopolitan.

Well-equipped with luxury hotels, shopping facilities and restaurants befitting one of Europe's coolest cities, Reykjavik provides something for every palate, from midnight gold under the Northern Lights, to a thriving music scene - Bjork is not obligatory!

So, Iceland is much more than a freezing rock inhabited by elves, trolls and men with blond moustaches. See you there! But remember to leave your sandals at home.