Höfn’s growth in the 20th century from a small village to today’s town was a result of the development of a relatively diverse fishing industry. A good part of the Icelandic lobster catch is landed at Höfn and recent years the town has promoted lobster as a central part of its image, for instance with a “lobster festival” that is held each summer. Höfn actually means harbour, though repeated dredging has proved necessary to keep the entrance of the harbour safe from sand deposits.
In this region you are located at the base of Vatnajökull glacier, and the scenery is breathtaking. Vatnajökull National Park, the largest national park in Europe, reaches into the area.