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Reykjavik - Early Origins History Overview
Reykjavik Early Origins
Reykjavik which translated means the 'bay of smokes' is thought to have been a desert island until the Viking Ingolfur Arnason settled there in 870AD. He chose the name for the settlement after seeing the steam rising from the islands hot springs.
For the next nine hundreds years it remained a farming hamlet. In 1752 the Danish Crown handed over the management of Reykjavik to the a Danish business body so that it could developed economically.
This change saw the construction of buildings to house a wool industry and other industries including agriculture fisheries, ship building and sulphur mining. The rights to these trades were dispersed to six areas of the city under leases owned by the Danish Crown in 1786. This arrangement is viewed by historians as the year that Reykjavik gained its present 'city' status. By 1800 the city's population had risen to 600.
In the 19th century the city and the country established its own identity and many of the islanders sought their independence from Danish rule. In 1845 the Alpthin (see the World Heritage note in the Iceland Country Profile) was reestablished.
In 1874 the Danes transferred some basic powers to Reykjavik and by default this made the city the country's capital. In 1904 the Icelanders were given the authority of Home Rule.
Reykjavik Recent History
In 1918 the country was recognised as 'Iceland' an independent state under the Danish Crown.
On May 10th 1940 after the German occupation of Denmark four British warships occupied the harbour at Reykjavik and anchored in the harbour. The Icelandic government who declared their wish to remain 'neutral' in WW2 reluctantly accepted the occupation.
During the occupation the British built Reykjavík Airport, which today, serves domestic flight and the Americans built Keflavík Airport now Iceland's main international airport, situated 50 km from Reykjavík. In 1944 Iceland declared itself a Republic and the office of former kings was replaced by the office of the President.
Postwar Reykjavik flourished as many islanders moved to the city looking for work. The city actively promoted modern industries, including technology and finance and invested heavily in new housing projects.