A volcanic island in the North Atlantic northwest of the European mainland and just below the Arctic Circle, Iceland is famous for its rugged landscape, volcanoes and hot springs. With less than 400,000 people, it is the least densely populated country in Europe. Roughly half the population lives in and around the capital, Reykjavik. Iceland has a thriving tourism industry, with fishing and aluminum smelting also important sectors of its economy. Iceland is a world leader in generating energy from renewable resources, particularly geothermal energy. Although not a member of the European Union, Iceland is part of the European single market through its membership in the European Economic Area (EEA). It is also part of the Schengen Area, which allows its citizens unrestricted travel to most other European countries.