We have found a stunning Spanish island that looks just like Mars

This lava tube was created by an eruption of a volcano about 4000 years ago," says our guide, Adai, as we follow him into a yawning crack in the ground, our imaginations racing at what lies beneath. Part of a six-kilometre complex of connecting subterranean tunnels, Cueva de los Verdes is straight out of a Jules Verne adventure. Steps and pathways entice us through this awe-inspiring chamber, under jagged stalactites of solidified magma and past watery, mirror-like chasms that conjure strange optical illusions. Enhancing the dreamy, surreal vibe is a sound and light installation by the late modernist artist Jesus Soto, with soothing yellow and green tones illuminating the darkness as ambient instrumental music drifts through the cave's refreshingly cool air.

This is one of several mesmerising spots where art blends with nature on Lanzarote, the quirkiest of the Canary Islands, a Spanish archipelago off the north-west coast of Africa. Blessed with year-round warm weather, the Canaries are a perennial favourite with tourists from mainland Europe. Indeed, when it's snowing in Madrid or London, you can get your fix of sun, sand, surf and sangria down here (winter daytime temperatures are usually above 20 degrees Celsius). Unbeknown to some holidaymakers, who cocoon themselves in beachside resorts, the islands brim with natural beauty, adventure and culture.

A UNESCO Biosphere Reserve, Lanzarote grips your attention from the moment your plane hits the runway edged by the Atlantic Ocean (or perhaps you'll arrive on a ship at Arrecife, Lanzarote's compact capital). You'll soon feel like you're on the moon, Mars or another distant planet as you take in the eye-popping scenery of an island that's been sporadically rocked by volcanic activity since emerging from the ocean 15 million years ago. Smooth roads snake by crinkly lava fields laced with conical peaks and other bizarre geological formations carved by the elements. Episodes of Doctor Who and Black Mirror have been filmed on Lanzarote's malpais (badlands), as have swords-and-sandals flicks like Clash of the Titans, starring Sam Worthington.

We're entranced by the rolling, ochre, crater-etched landscapes of Timanfaya National Park, where astronauts have carried out training missions. Dominating the south-western chunk of an island that's a bit larger than Singapore (but with just a fraction of its population: 150,000 v 5 million), this eerie park can be surveyed on camel rides, but I'd recommend the organised circular coach tour, which includes intriguing commentary about the evolving landscapes. Have lunch at the park's El Diablo restaurant, which resembles a flying saucer and serves the likes of chorizo, chicken and vegetables barbecued over a volcano-powered geothermal pit.

As with so many things on Lanzarote, the restaurant was designed by Cesar Manrique, dubbed "the Gaudi of Lanzarote". Like his fellow Canarian Jesus Soto, Manrique drew inspiration from his surrounds, embellishing the island with eclectic art and working with the authorities to promote sustainable tourism long before it became fashionable. Even now, three decades after Manrique's death, Lanzarote remains less built-up, and with lower-rise resorts than larger Canarian islands Tenerife and Gran Canaria.

As you explore Lanzarote, you'll see Manrique's offbeat sculptures on road sides and roundabouts, while his creativity fuels attractions like Jameos del Agua, where he transformed semi-collapsed volcanic caves into an entertainment, dining and cultural venue. Hollywood actress Rita Hayworth apparently called it "the eighth wonder of the world" when she visited while shooting the 1970 movie, Road to Salina, on Lanzarote. Some features at Jameos del Agua, such as the radiant, palm-fringed turquoise pool, are al fresco and tickled by the breeze, while other nooks, such as the 550-capacity auditorium, are framed by basalt walls, yielding spine-tingling acoustics for concerts.

Also here is a luminous lagoon wriggling with Lanzarote's endemic albino blind crabs, and a grotto restaurant offering typical Canarian dishes such as grilled Saharian squid. Pair your meal with a wine, perhaps a dry white malvasia, from La Geria, the island's main vineyard-pocked region.

Grapes aren't the only fruit to thrive on Lanzarote. Despite the harsh volcanic soils and low annual rainfall (150mm, about a quarter of that received by Canberra), tomatoes, figs, olives, oranges and almonds also grow here. You'll see them in stores and at the weekly markets that spring up around the island, such as the Saturday morning one in Haria, a charming whitewashed village where Manrique is honoured in a museum at his former house and studio.

Passing lofty palm trees and colourful bougainvillea, hibiscus and rhododendron, we stroll around Haria's shaded plaza, where a busker is playing guitar and crowds browse the wares of the friendly stallholders. You can sample jams made from the island's aloe vera and cacti, and local cheeses produced with goats' and sheep's milk. But stealing our gaze are the artisan crafts. There's pottery hewn from volcanic clay, glass blowers illustrated with flames, lava stone necklaces and many other quirky potential souvenirs that capture the essence of this unique and remarkable island.

1. HOUSE OF VOLCANOES. A recent addition to Jameos del Agua, this sleek museum has quirky geological finds and immersive experiences, including VR (virtual reality) tours of Lanzarote's volcanic underworld.

2. THE CACTUS GARDEN. Cesar Manrique's last great work, this former quarry is decorated with 4500 cacti from five continents.

3. MIRADOR DEL RIO. Resembling a Bond villain's lair, this Manrique-designed lookout is dug into a cliff 400 metres above Lanzarote's north coast and grants views over another island, La Graciosa.

4. PUNTA MUJERES AND ARRIETA. These chilled-out neighbouring fishing villages have natural rock pools, seafood restaurants, self-catering apartments and bohemian chiringuitos (beach bars).

5. MUSEO ATLANTICO. At what's touted as Europe's first underwater museum, divers encounter sculptures by British artist Jason deCaires Taylor. It's close to the seductive sandy beaches on Lanzarote's south coast.

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Getting there: Lanzarote is connected to more than 80 European destinations, including Madrid, where Emirates flies from Sydney, Melbourne and Brisbane via Dubai. See emirates.com

Getting around: Public transport is limited here, so a hire car from the airport is best.

Staying there: La Casa de los Naranjos is a smart boutique hotel in a converted 1840s heritage property in Haria. Double rooms from about $265. See lacasadelosnaranjos.com

Explore more: turismolanzarote.com; hellocanaryislands.com

Pictures: Shutterstock; Canary Island Tourism