Holmavik

A village situated on the coast of the Steingrimsfjord Bay, Holmavik has been the commercial hub of Iceland for over a century. Fishing is the main driver of the town's economy, but in the past decades, tourism has seen a significant growth. This is perhaps due to the improvement of the road to Isaf Jordur.
Though it has no metropolis to speak of, Holmavik offers the perfect base for travellers looking to explore other areas nearby. It has a hotel, guesthouse, horse rental farm, and information office manned by friendly locals. There's also a 9-hole golf course and camping ground with toilets, showers, and cooking facilities.
Among the top attractions in town is the Cafe Riis, which is also the oldest house in the village. It is an excellent restaurant that features live music and theatrical performances. Cafe Riis also has a superb collection of old photographs of Holmavik's residents.
While here, don't forget to visit the popular Museum of Icelandic Sorcery and Withcraft. It's a must.