Here are a few tips:
-Bring warm clothing and rain gear - have it handy. In the interior I experienced sub Zero nights in the first week of August
-Have some bottles of spirits with you (half bottles, plastic).. it is a great way to meet people
-Iceland is very windy, can get very cold even in July, and basing your trip on setting up and living in a tent is not what I would reccommend.... but i would bring one in case of emergencies (a lodge being fully booked, a breakedown, etc)
-Travel through the interiro will take you 2-3 days, and is highly reccomended... if you ride a dual sport. If not, forget it
-Don't expect to see other riders outside Reykjavik
-Ride the southern part of the Western fjords, it is awesome... the northern part of the western fjord is not as nice, but good
-Spend a few days in Reykjavik at the end of the trip and don't hold back - the food and social scene is spectacular. Find a concert and go
-Don't cook your own food, eat in the restaurants... eating in Iceland is a great experience
-Going into the interior there are self serving lodges... but you need to bring your own food. Bring a cooker incase you need to tent. Bring coffe, fresh water, etc... The interior is spectacular, but can also be a trial for both man and bike... take it easy and don't be a macho man.
Warning, Iceland is a windy place. The wind can get very strong and very unpredictable. Being an island, with roads twisting in and out of fjords, with hills and rock formations, all contributing to unpredictable wind (direction and strength), combined with no tell tale signs in the form of vegitation, it can qucikly steer you off the road and into the gutter in a heart beat. One day was so intense I couldn't keep the bike on the road even at walking speeds, throwing me all over the place.
But Iceland can also be sunny and dead quiet... and it is allways beautiful, and the people are awesome.
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