Just watched it (Christmas eve tradition) its always bothered me.
However, here's the thing. They actually are going south. James lives in Brighton on the south coast. The clearly fly over the pavillion and the pier and continue going SOUTH over the sea.
I mean, they must skip the bit where they fly over the Sahara but they must be going to the south pole which is why they see penguins. This also explains why James didn't freeze to death because it was the Antarctic summer not the arctic weather winter.
It also explains why we have never track down Santa. We've been looking in the wrong place!!!
I don't know how to explain the scandi village the pass over, maybe theres an island in the Antarctic sea where Norwegians built a replica village to remind them of home....