This is a glacier lagoon on the southeast part of the country. The Breiðamerkurjökull glacier has been retreating for the past 90 years or so, and now it is about 1.5 kilometers from the ocean. A lake - now Iceland's deepest - has grown in size over that time.
The main attraction of the place is the icebergs, which split off from the glacier in warmer weather and slowly float toward the ocean as they melt. Therefore, the tourists can either see them from the shore or, for a small fee, go on a tour boat for an up-close viewpoint. The blue colors in the ice are particularly striking.
The area has been used for a handful of commercials and movies, including the James Bond film, "A View to a Kill." I may have to go watch that, if only to see the area.
This one deserves a video:
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