It has many Italians but less than seven Icelanders (6)
I believe the answer is:
venice
'it has many italians' is the definition.
The definition suggests a singular noun which matches the answer. I also know that 'italians' relates to this answer.
'less than seven icelanders' is the wordplay.
'less' indicates a hidden word (the clue less some of the letters in it).
'VENICE' is hidden within 'than seven icelanders'.
'but' is the link.
Can you help me to learn more?
(Other definitions for venice that I've seen before include "City of 15 acrosses" , "Italy's water city" , "Car-free city" , "Archdeacon subject to delay, it's implied, in" , "Italian city once known as Queen of the Adriatic" .)