Stykkishólmur is a town and municipality situated in the western part of Iceland, in the northern part of the Snæfellsnes peninsula. It is a center of services and commerce for the area. Most of the people make their living from fishing and tourism. A ferry called Baldur goes over the Breiðafjörður fjord to the Westfjords. It also is the gateway to Flatey. The origin of Stykkishólmur can be traced to its natural harbor.