Originally Keflavík, one of three towns now forming Reykjanesbæ, was a trading post from the year 1590 and later a fishing and fish processing community started developing around the merchants’ houses. Nowadays, Keflavik is a thriving service and industrial centre. Keflavik International Airport is an important factor in the everyday life of the inhabitants.

Tourism has become an important basis of livelihood and to serve the visitors properly, new hotels and restaurants have been established. Fishing and fish processing have always been the main bases of livelihood in the three towns forming Reykjanesbæ. The Folk Museum of Njardvik one of the three towns is highly interesting and a replica of a 19th century fishermen’s dwelling shows an important part of the history of the area. Basketball is the most popular sport in the Reykjanes area and Njardvik has one of the best teams of the country.