Ísafjördur (meaning ices' fjord) is a town in the northwest of Iceland. It is the seat of Ísafjardarbær municipality.
With a population of about 2,600 Ísafjördur is the largest town in the peninsula of Vestfirdir (Westfjords) and the seat of the Ísafjardarbær municipality, which includes the nearby Hnífsdalur, Flateyri, Sudureyri, and Þingeyri. It is located on a spit of sand, or eyri, in Skutulsfjördur, a fjord which meets the waters of the larger Isafjardardjúp.
The town is connected by road and a recent 5.4 kilometres (3.4 miles) road tunnel to Bolungarvík which lies 15 km (9 mi) to the northwest, and to the small town of Súdavík to the east. The partly one-lane Vestfjardagöng (Vestfirdir Tunnel), completed in 1996, leads to the small towns of Flateyri and Sudureyri, and to the western parts of the Westfjords. Ísafjördur has an airport with regular flights to Reykjavík.
Fishing has been the main industry in Ísafjördur, and the town has one of the largest fisheries in Iceland. A severe decline in the fishing industry, for a variety of reasons such as political fishing restrictions in the early 80s and a decline in the fish population, has led the inhabitants to seek work elsewhere, leading to a decline in the town's population. The harbor also serves ferries to nearby settlements as well as larger cruise ships for tourists visiting the area.
Despite its size, small population, and historical isolation from the rest of the country, the town has a rather urban atmosphere. Ísafjördur has a school of music as well as a hospital. The older former hospital building now accommodates a cultural center with a library and showrooms. Recently the small town has become known in the country as a center for alternative music outside of Iceland and a yearly festival, Aldrei fór ég sudur, provides a platform for local musicians and bands from around Iceland and even from overseas. A university center, Háskólasetur Vestfjarda, which acts as a distance learning center for the 7000 residents of the Westfjords, was established in March 2005.
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