Iceland is a small country, with very few people living there. So not a very large gay scene, but with the many tourists visiting it still can be quiet interesting.
Stay in the city Reykjavik, from there you can do excursions to the hot baths and other sight seeing.
Hotel recommendations and map
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After London, Edinburgh is the UK's second most popular tourist destination. Edinburgh is great for a weekend trip, there is a lot to see, nice restaurants and also a busy gay scene in the weekend.
1370 km from Reykjavik
Dublin is small but a lovely city to visit. The LGBTQ+ scene is small but gets very busy in weekends.
1490 km from Reykjavik
Liverpool is a popular city destination. The city has a musical vibe to it, because of its Beatles history. The gay scene is quite large.
1600 km from Reykjavik
The Manchester gay village makes this city a place to return to over and over again. It gets never boring.
1630 km from Reykjavik