Ísafjörður is a town in the north west of Iceland, seat of Ísafjarðarbær municipality. With a population of about 4,000 Ísafjörður is the largest town in the peninsula of Vestfirðir (Westfjords) and the seat of the Ísafjarðarbær municipality, which includes the nearby Hnífsdalur, Flateyri, Suðureyri, and Þingeyri. It is located on a spit of sand, or eyri, in the Skutulsfjörður fjord which meets the waters of the larger Isafjarðardjúp fjord. Fishing has been the main industry in Ísafjörður, 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.