In spite of substantial territory, the population is only around 2400. Hofn is the largest part of the municipality in terms of population, with around 2000 inhabitants. Its economical activities mainly revolve around fish - fishing and fish processing. One of the town's main product is the lobster, which can be found in abundant quantities in the fishing areas surrounding the Southeastern coast of Iceland. The name "Hornafjordur" relates to the very large glacier lagoon (at times incorrectly referred to as a fjord). The 40 sq.km large lagoon, Hornafjodur, is formed by interactions of the Atlantic Ocean and the Vatnajokull glacier, which by its constant movement produces clay and sand, carried by the glacier rivers and ending up as sediment in the lagoon.
The region's main itineraries are 1)The spectacular national park, Skaftafell (around 200 km west of Hofn), 2) Jokulsarlon (literally the Glacial River Lagoon) located approximately 100 km east of Skaftafell and 3) The Vatnajokull Glacier to which there is a road, around 50 km east of Jokulsarlon and 4) Lonsorafi, one of Iceland's most beautiful mountain area, only reachable by foot.