Olhão is a working fishing town on the eastern Algarve, facing the barrier islands of the Ria Formosa lagoon. It has the Algarve's best covered market (Mercado de Olhão), a North African-influenced architecture of flat-roofed white cubes, and boat connections to the sandy islands of Armona and Culatra. Unlike most Algarve destinations, Olhão is not primarily a tourist town. Fishing and seafood processing are still significant, and the waterfront restaurants serve some of the region's best and freshest fish at prices below the resort average. We think it's one of the most interesting places on the Algarve — not the most beautiful, but the most genuine.
Why Stay in Olhão
- Market: The Mercado de Olhão is a pair of red-brick market halls on the waterfront. The fish market is the Algarve's largest — tuna, sardines, clams, oysters, and barnacles from the boats outside. The fruit and vegetable market is across the road. Saturday mornings are the most active.
- Ria Formosa islands: Boats from the waterfront reach Armona and Culatra in 15-30 minutes. Both have long, empty beaches on the ocean side and quieter lagoon-facing shores. The sand is fine, the water is clear, and the development is minimal.
- Seafood: The waterfront restaurants serve cataplana (copper-pot fish stew), grilled fish, and shellfish at prices that reflect the fishing port rather than the tourist strip. Quality is high; the ingredient quality is unbeatable.
- Ria Formosa: The lagoon is a nature reserve with flamingos, wading birds, and seahorses. Boat tours and kayak trips explore the channels and salt pans.
