Largely a service harbour until recently, the Old Harbour and the neighbouring Grandi area have blossomed into tourist hot spots, with key art galleries, several museums, volcano and Northern Lights films, and excellent restaurants. Whale-watching and puffin-viewing trips depart from the pier. Photo ops abound with views of fishing boats, the Harpa concert hall and snowcapped mountains beyond.
On the western edge of the harbour, the Grandi area, named after the fish factory there, is burgeoning with eateries and shops.