Reykjavík is often dubbed "the nightlife capital of the north". It is famous for its nightlife during the weekends. Icelanders tend to go out late so bars that look rather quiet can fill up suddenly—usually after midnight on a weekend.
One of the main causes for this is that alcohol is relatively expensive at bars. People tend to drink at home before going out. Beer was banned in Iceland until 1 March 1989, but has since become popular among many Icelanders as their alcoholic drink of choice. Beer, however, is expensive: half a litre of beer in an Icelandic bar can cost between 600 and 850 krónur (approx. US$5–7, €3–5, or £3–4 as of August 2009). Consequently, revellers will often leave home late and are already inebriated when they arrive at the bars in the city centre.
There are over 100 different bars and clubs in Reykjavík. Most of them are located on Laugavegur and its side streets. It is very common for an establishment that is a café before dinner to turn into a bar in the evening. Closing time is usually around 6am at weekends and 1am during the week.
www.lonelyplanet.com/iceland/reykjavik
www.ivebeenthere.co.uk/places/iceland/reykjavik/index.jsp
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