Bíldudalur village in Arnarfjörður fjord in the West Fjords

Einar Páll Svavarsson
Jun 2
3 min read

Bíldudalur village in Westfjords — The small harbor in Bíldudalur village

Bíldudalur village confidently graces the southern coastline of the stunning fjord Arnarfjörður in the West Fjords. As one of Iceland's longest fjords, Arnarfjörður offers a remarkable landscape from its entrance to its deepest reaches. Bíldudalur stands as the sole village in the fjord and unquestionably ranks among the most captivating destinations in the West Fjords. Despite its historical isolation and challenging winter access, Bíldudalur transforms in summer, with every road leading to fascinating locations and delightful scenic routes. Whether venturing to the fjord's mouth through valleys carved into the coastal mountains or ascending the mountain passes for breathtaking views, Bíldudalur promises an unforgettable journey.

Iceland’s first significant entrepreneur lived in Bíldudalur

In the latter half of the 18th century, this small village was the thriving hub for Iceland’s leading entrepreneur, Ólafur Thorlacius. Following the abolition of the notorious Danish–Icelandic Trade Monopoly, Ólafur seized the opportunity by acquiring all its assets and expanding his operations beyond anything seen in Iceland at that time. He exported fish from Bíldudalur to Spain using his own vessels and owned decked ships when most relied on rowing boats. Ólafur capitalized on opportunities to build one of the era's most extensive operations and amassed unprecedented wealth in a remote area often associated with hardship. During his lifetime, he extended his business to other towns and became one of the wealthiest individuals in the country.

Bíldudalur is a small village with a fascinating history

Fortunately for Bíldudalur, some of Ólafur’s successors took the business to another level. For almost two centuries, Bíldudalur was one of Iceland's busiest towns for import and export. In the 19th century, more houses were built in Bíldudalur than in most places in Iceland. However, as dashing as the village history might have been in the 18th and 19th centuries, the village took a downturn in the 20th century and never regained its former glory. Today it is a small struggling community, still economically dependent on fish and fisheries. Like most small villages in the West Fjords, it has been hit hard by the fishing quota system created by the Icelandic government in 1990. However, in recent years, Bíldudalur’s economy has again taken an interesting turn. Around 2010, a new aquaculture company, Arnarlax, started salmon farming in Arnarfjörður fjord with its main headquarters in Bíldudalur. The company is fast becoming one of Iceland’s largest fish farming companies with escalating exports. It was founded by an individual born and raised in Bíldudalur, so it seems as if the entrepreneurial spirit of Ólafur Thorlacius has not died.

Today a struggling municipality like many West Fjords villages

Church in Bíldudalur village in the West Fjords, Iceland

Bíldudalur is part of the municipality Vesturbyggð, which also includes the small village of Patreksfjörður. The community offers standard quality services provided by towns and villages in Iceland, such as a preschool, an elementary and middle school, a library, and a community center. In addition, the municipality collaborates in the Snæfellsnes high school, which has an annex in Patreksfjörður. There is also a good sports center. The fact that small towns in Iceland have good access to education and sports reflects the high value placed on education, well-being, and care for others in the community.

Most of the houses in Bíldudalur are single-family houses from the ‘50’s, ‘60’s, and ‘70’s, and all homes are heated with electricity. Bíldudalur also offers accommodation, a good camping site, and a convenience store for those who are interested in stopping in Arnarfjörður when driving the West Fjords.