The village Budareyri is on the end of the bay Reyðarfjordur. It has a natural harbour and fishing and fish processing are the main bases of livelihood. During World War II, the British occupied the village and planted a large garrison there. This part of the country's history is depicted in the local World War II Museum. Just outside the village is a pond, The Duck Pond, where people can buy fishing permits to catch salmon, which is released there for the purpose. The camping grounds are on the pond, but a hotel, a guesthouse, a youth hostel and restaurants are in the village itself. During the firs decade of the 21st century, a Aluminium smelter with the capasity of 290.000 tons was constructed for the international concern Alcoa on the norhtern side of the bay. To realize this endeavour, the largest hydroelectric power plant of the country was constructed in the eastern interior. From the top of Mt. Graenafell the view is breathtaking on a fine day.

If you are travelling north to town Egilsstadir, you should take a look at the current road and weather conditions on moorland Fagridalur, and Mt Pass Oddskard, if you are heading for town Neskaupsstadur. The distance from the capital is 688 km.

Reyðarfjörður is the perfect base from which to explore the hunting region, whose rocks, stones and mountains are said to be blessed with powers as magical as the landscape itself. In winter, the fjords are a playground for skiers, while in autumn, they are a hunter´s paradise, with reindeer, geese, wildfowl, trout and salmon providing a challenge worthy af any sportsman. In summer, nearby Seyðisfjörður is the port of call for the car-ferry Norrona, linking Iceland with the Faroes, Shetland, Denmark and Norway, making Fosshotel Reyðarfjörður a hotel for all seasons. Reyðarfjörður is located on the head of the longest fjord of the same name, has a good, naturally sheltered harbour and a museum of war memorabilia.