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From seafood restaurants in historic houses to cafés by the shore, the Lighthouse Trail has plenty of places to eat and stay. Each village has its own restaurants, and you will also find good options along the coast between them. Stay a night or two and enjoy the coast at a slower pace.

ÞORLÁKSHÖFN
The main town in Ölfus is Þorlákshöfn, west of Eyrarbakki. The town is important as a port because the only viable harbour on Iceland's southern coast between Grindavík in the west and Höfn in the east is situated there. The town has a population of about 1500 people. The industrial foundations in Þorlákshöfn are ship-outfitting and fish processing factories, with business and service industries growing fast. Leisure opportunities for tourists are excellent, with an outdoor swimming pool with hot baths, a steam bath and a brand new waterslide. A good campsite is next door to the pool, with indoor cooking facilities and spaces for mobile homes. From the swimming pool you can select many walking routes in the surrounding area and longer walks along the coast, leading all the way to Selvogur and Herdísarvík, and along the beach leading to Óseyrarbrú and Eyrarbakki. In the Egilsbúð library and museum items that tell the story of the development of the town are to be found. The town church in Þorlákshöfn is built in a unique style, and Strandarkirkja church in Engilsvík in Selvogur is famous as a place for vows. Anyone wishing to go caving has the Raufarhólshellir caves, which are some 1360 metres long. Duggan in Thorlákshöfn and Skíðaskálinn in Hveradalir offer many services to travellers, among them food and drink. Many scenes in the epic blockbuster movie "Flags of our Fathers" (directed by Clint Eastwood and produced by Steven Spielberg - 2005) were filmed on the black beaches close to Þorlákshöfn. There are also plans to construct a big international golf course close to Þorlákshöfn.
EYRARBAKKI
Eyrarbakki, pop. 585 is a friendly village that used to be the largest commercial community and main harbor on the South Coast of Iceland. Many preserved houses from 1890 to 1920 are situated in Eyrarbakki, and a visit is, therefore, like going 100 years back in time. Other great attractions are The Eyrarbakki Maritime Museum and the Árnessýsla Folk Museum, which is located in a building constructed in 1765, famously known as “The House”. Here you can also find a campsite, hostel, guesthouses and a great restaurant. On the rocky shoreline is a fantastic view of the Atlantic Ocean, where you can watch the surf break. It is an ideal spot for hiking and bird watching. Passing the beautiful recreational forest Hallskot northwest of Eyrarbakki, you enter the Flói Bird Reserve. It is a significant nesting area, especially for wetland birds, and is listed as an Important Bird Area (IBA) by BirdLife International. ÁRBORG The Municipality of Árborg was established in 1998. It consists of the town Selfoss, the villages of Eyrarbakki, Stokkseyri, and the Sandvík area. This region offers excellent options for recreation and relaxation, including a wide selection of restaurants, cafés, art galleries, museums, swimming pools, and a 9-hole golf course in Selfoss. A perfect location for any visitor who wants to stay closer to nature and explore unique landscapes such as large lava fields and black sand beaches.
STOKKSEYRI
STOKKSEYRIStokkseyri, pop. 559 is a charming village renowned for its beautiful seashore, breaking ocean waves and birdlife, and rich in handicrafts and culture. Workshops, galleries, Ghost Center, and the Elves and Northern Lights Museum are all located in a Cultural Centre, Menningarverstöðin, an old fish processing factory that has found a new role due to changes in the fishing industry. The Wildlife Museum is dedicated to hunting and wildlife and contains many mammals and birds. The bunkhouse Þuríðarbúð provides an excellent example of how fishermen had to make use of what nature provided. Stokkseyri also offers one of Iceland's most famous seafood restaurants, an outdoor swimming pool, kayak tours, and a campsite. East of Stokkseyri is Knarrarósviti Lighthouse, built-in 1938 and put into operation a year later. For further information, visit the tourist information at the local Café, Gimli Kaffihús. ÁRBORGThe Municipality of Árborg was established in 1998. It consists of the town Selfoss, the villages of Eyrarbakki, Stokkseyri, and the Sandvík area. This region offers excellent options for recreation and relaxation, including a wide selection of restaurants, cafés, art galleries, museums, swimming pools, and a 9-hole golf course in Selfoss. A perfect location for any visitor who wants to stay closer to nature and explore unique landscapes such as large lava fields and black sand beaches.
Black Sand Hótel
Nestled in the stunning Ölfus region, Black Sand Hotel is set to redefine your travel experience with exceptional service and breathtaking views. Our mission is to create unforgettable moments through genuine hospitality, ensuring every guest feels truly at home. The hotel is set to open in October 2025.
Fjöruborðið restaurant
Fjöruborðið restaurant in the village of Stokkseyri is an enchanted place of delight. People have to tear themselves away from it – but that is all right. There is only positive magic inside, tickling both your stomach and your soul.
Rauða Húsið Restaurant
A great beginning or memorable end to your Golden Circle or South Coast trip, or a destination in itself. Some of the country’s best seafood, steaks, and lamb, decadent desserts, and local craft beers in a historic house in a charming seaside village.
Bakki HI Hostel & Apartments
Located in the quaint seaside town of Eyrarbakki, your gateway to the Golden Circle and the South Coast. Gullfoss, Geysir, Thingvellir National Park, the famous Blue Lagoon, and the waterfall Seljalandsfoss are all less than an hour away, and so is downtown Reyjavík.  Just steps away from the seaside path that runs the length of this quaint, authentically Icelandic town. Far from big-city lights, this is an ideal spot for watching the northern lights in wintertime. Spectacular sunsets over the sea are on offer all year round. It is also just a short walk from the TripAdvisor "Certificate of Excellence"-winning restaurant Rauða Húsið (The Red House). The three spacious, fully-equipped apartments provide all modern conveniences and each sleep up to four. The brand-new hostel has 36 bunks in 4 dorm rooms with shared kitchen and bathrooms. Linen is included with all stays. Free WiFi and parking is available for all guests. Smart TVs are found in all apartments and in the hostel common areas and feature a  A convenience store is located just next-door at the fuel station. Eyrarbakki is a small town with fewer than 600 residents, but don’t let its small size fool you! You can enjoy horse riding on Eyrarbakki’s black sand beach or kayaking on the sea. The coast near Eyrarbakki is also a popular spot for surfing, believe it or not! There are a range of activities on offer in and around Eyrarbakki, as we can help you discover it. You can see more at www.discovereyrarbakki.is or simply ask us! Please contact for prices and booking information.