A small fishing village (population about 1.000) on Snæfellsnes in west-Iceland. Income mostly from fishing and tourism. Best bakery in the world can be found on the main road through town (Ólafsbraut). There is a guesthouse and a hotel and restaurants acompanying them. Whale-watching boat-rides daily in the summer. The town's oldest house is a black timberhouse, (Pakkhúsið) built 1844 (although the town is much older, more than 300 years old), it now serves as a tourist information center. Ólafsvík is 180 km drive from the capital Reykjavík (about 2 hours drive). The town is built at the roots of a steep mountain named Ólafsvíkurenni (or just Ennið, about 400m high). The town is surrounded by mountains on one side and sea on the other. Snæfellsjökull-glacier presides over the town in the north.
Since a few years a festival, The Faeroe Islands Days (Færeyskir dagar), has become a annual event, held every summer attracting a few thousands guests to the town every year.