Arctic Circle region (7)
I believe the answer is:
lapland
'arctic circle region' is the definition.
(I've seen this in another clue)
This is all the clue.
(Other definitions for lapland that I've seen before include "Santa's home" , "Region of northern Scandinavia and Russia" , "Region of northern Europe" , "Father Christmas's home?" , "North Scandinavian region associated with Santa Claus" .)