Initially settled by the Scandinavian Vikings in the 9th century, it was not until a millennium that the first genuine settlement took place.
Around 1871 blacksmith Árni Árnason, his large family were among the first few to settle here. Though the town has a harbor, docking was an arduous task as sailors preferred the safer parts of the fjord and docked at Hofsós, Grafarós and Kolkuós. In fact, Danish rulers only permitted trading to be carried out through Hofsós en Sauðárkrókur. Known to be an economic hub, the town has grown to provide diverse services and various economic activities are initiated. Some of the commercial activities include fisheries, agriculture, dairy production, light-industrial manufacture and other allied services like engineering, computers, finance, consulting, printing, designing etc. Sauðárkrókur, which exudes an old-town charm, is also mentioned in the Sagas – the Grettis Saga makes a mention of the natural hot pool located to the north.
Known to be among the busiest towns in Iceland, tourism has thrived in the region due to its historical and cultural past, besides facilities like skiing, horse-riding and hiking. Minjahús, which is part of the regional museum, is also among major attractions here. The town also has Glaumbær, a turf farmhouse, besides old structures dating back to the 18th century. Sauðárkrókur celebrates ‘Sæluvika Skagfirðinga’, a festival which began in the 19th century.
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