Olhão: A cozy coastal town in the eastern Algarve
Olhão (Algarve): Tips for a visit or holiday to this place
Less than 10 kilometres from Faro airport lies the coastal town of Olhão on the edge of the Ria Formosa nature park. From the air, it is the last place you see before your plane lands in neighbouring Faro. Along the city’s boulevard, numerous restaurants await your visit and you can see boats coming and going from the parks.
Olhão is also the departure point for ferries to Ilha da Armona and Ilha da Culatra, two beautiful barrier islands that you can see from the quay in the distance. Dive into the bright red market hall and see where the locals buy their vegetables, fruit and fresh fish and walk through the maze of (car-free) streets behind the Avenida 5 de Outubro and see murals, traditional Portuguese architecture and houses with white walls and beautiful finishing.
Below you will find my tips for a visit to Olhão, based on my own visit to this lovely town.
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Sights in Olhão
Most of the sights in Olhão are within walking distance once you have found a place to park your rental car. The best place to start your visit is at the market hall, as it closes in the middle of the afternoon. Then you can zigzag through the old town and then take a ferry to one of the islands for a little boat trip and discovery.
These are the most beautiful sights in Olhão that I recommend visiting:
- Mercados de Olhão.
The market hall, or actually market halls because there are two of them, are icons of the city. Fresh fish, meat, vegetables and fruit have been weighed and sold here for decades. Even if you eat out every night, it is still nice to take a peek inside and look at the fresh produce. Stock up on some fruit for the road and taste the flavours of the Algarve. The market is closed on Sundays.
- Jardim Pescador Olhanense & Jardim Patrão Joaquim Lopes. On either side of the market halls you walk through parks with tables, picnic benches and play equipment for children here and there. Enjoy your packed lunch here or take a break and watch the ships moored along the coast. From small fishing boats to luxury yachts of holidaymakers. On the east side is the ferry pier, from where ferries leave for the barrier islands Ilha da Armona and Ilha da Culatra.
- The murals of Rua da Fábrica Velha.
In Rua da Fábrica Velha, see the beautiful murals that reflect the history of the city. From the ferry pier, cross the street into Rua da Conserveira and take the first link to get there. - Church of Our Lady of the Rosary and Chapel of Our Lady of the Rosary. It’s a mouthful, but this Catholic church in the old town of Olhão is not only the local house of God, but also the home of storks who use the roof as a nesting place. The church was built in the 17th century and took 17 years to complete. When the doors are open, visitors are welcomed and inside you’ll see a gilded altar, baroque finishes and stained glass windows.
- Museu Municipal de Olhão. Unfortunately this museum was closed for renovations during my visit to Olhão, but this is expected to be completed before the start of the summer season. Inside you will find scale models of ships, paintings of seafaring and you can read the intriguing story of the ship Bom Sucesso . There are also small exhibitions with sacred art, old costumes and remains from Roman and Moorish times. The entrance fee is €2.00 and the information boards are in Portuguese and English.
- Parque Natural da Ria Formosa. If you looked out of the window just before landing at Faro Airport, you will undoubtedly have seen the blue-green waters of the Ria Formosa nature reserve. This protected nature reserve is home to hundreds of species of birds, fish and other animals. If you take the ferry to Ilha da Armona or Ilha da Culatra you will see a part of the nature reserve, but there are also more than enough excursions to be found in Olhão where you can go on an adventure by boat or kayak under the guidance of a guide.
- Ilha da Armona. Just 3 kilometres by boat from the ferry terminal in Olhão lies Ilha da Armona: an island that largely consists of sand, holiday homes and a single restaurant. After less than a kilometre of walking you leave the last house behind you and arrive at Praia da Armona beach. This stretches for about 8 kilometres towards the northeast and on the way you will most likely meet no one except for a few people. If you like to spend the night on the island: The camping chain Orbitur has a location on the island where you can stay in a nice bungalow with one or two bedrooms.
- Ilha da Culatra. The other island off the coast of Olhão is called Ilha da Culatra, which surprisingly enough suddenly changes to ‘ilha do Farol’ towards the west. This island can also be reached by a short ferry crossing and apart from three small settlements the island consists entirely of dunes and beach.
- Salinas do Grelha Just outside Olhão, salt has been extracted in the salt pans of Salinas do Grelha since 1908. Here you are welcome for a visit and a tour of the artificial ponds where salt is extracted. They also have their own Dead Sea (okay, more of a Dead Lake) where you can swim. It is so saturated with salt that you float on the water as if you are weightless. Next to the swimming lake is a small log cabin where you can buy a bag of cooking, scrub or mixed salt as a souvenir. Advance reservations for a guided tour are required.
- The viewpoint on the Cerro de São Miguel. A short 20 minute meander through the hills behind Olhão brings you to the top of the Cerro de São Miguel. This viewpoint is at a modest 411 meters high and on a clear day (so not when I took the photo) you can see for miles towards the coast on one side and the interior on the other. This summit is also a popular starting point for mountain bikers who descend the hill via steep descents.
The top 6 best activities in Olhão
As Olhão is situated on the edge of the impressive Ria Formosa Natural Park, it will come as no surprise that many of the activities in the town are related to this reserve. The most popular excursions and tours in Olhão are boat trips to the barrier islands, but there is also plenty to do inland.
These are the 6 best activities in Olhão:
1. Barrier Islands Day Tour from Olhão
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This is by far the most popular boat trip from Olhão. Visit Ilha da Armona & Ilha da culatra in one day together with a guide who tells about the islands and the nature and culture that can be found there.
Along the way there will be time to walk on the islands and possibly have lunch (not included). There will also be time to swim and explore the settlements.
The meeting point is the ferry terminal at Av. 5 de Outubro, which is also the location where you will be dropped off at the end of the tour.
2. Sunset Boat Tour in Ria Formosa Natural Park
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A nice alternative boat trip is this shorter cruise through the Ria Formosa Natural Park which departs late morning or late afternoon. The latter option is a sunset tour where you visit Ilha da Armona and Ilha da Culatra while the sun is low.
In between the boat trips, you also have some time to walk around the islands or have a drink on one of the terraces.
At the end of the boat trip you will return to the starting point: the ferry terminal of Olhão. For large groups the boat can be fully booked.
3. Cork Factory Tour
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In every village and city you see a few: shops full of cork products. Slippers, bags, decoration, you name it. But how is cork actually grown and processed? You will discover this during an (English) tour of the eco-cork factory Francisco Carrusca .
During your visit, a guide will tell you how cork is harvested and processed before it goes to the various factories where the final products are made.
The tour of the operational factory ends in a shop selling several products made entirely from cork.
4. Guided hike to the Seven Hanging Valleys
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If you don’t have your own transport, this guided day trip to the Seven Hanging Valleys is a great excursion to explore more of the Algarve.
From the meeting point in front of the Real Marina & Spa Hotel, you will depart by minibus to the start of your 9km walking adventure just outside Carvoeiro. From there, you will walk along the top of the Algarve’s impressive cliffs, passing famous names such as the Benagil Cave and Praia da Marinha.
The guide will tell you about the local flora, fauna and history of the region along the way and the day will end with a small tasting of some local snacks.
This hike is suitable for anyone with an ‘average’ level of fitness.
5. Island tour including lunch
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Like activities 1 and 2, this is an island tour from the ferry terminal in Olhão. Where this excursion goes a little further than the other two, is that a traditional Portuguese lunch is included where you join a Portuguese family!
The guide will take you by boat to Ilha da Armona and Ilha da Culatra, taking you through small villages where you will get to know the way of life of these islanders.
This tour lasts about 6(!) hours and includes lunch, making it excellent value for money!
6. Dolphin watching from Olhão
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Just like in neighbouring cities Faro and Albufeira, boat trips are also organised from Olhão where you can search the water for wild dolphins with an experienced skipper!
The chance of seeing them in the Algarve is huge as they migrate along the coast all year round. Of course they are wild animals so there is no guarantee that you will actually see them, but even if you don’t, this is a fun boat trip that takes you through the Ria Formosa Natural Park.
Olhão accommodation tips
Olhão is a fantastic location to use as a base during your Algarve adventure. It is full of great restaurants, fun activities and many nice neighbouring towns such as Faro , Tavira and Loulé . In and just outside Olhão are a number of nice hotels and guesthouses that will make your stay extra special.
These are my hotel tips for a stay in Olhão:
1. Pure Formosa Concept Hotel
Let yourself be pampered at the Pure Formosa Concept Hotel . This 3-star hotel is located in the centre of Olhão and has a rooftop pool! So you can look out over the ocean from the bath or from the sun loungers.
Inside you will find a modern restaurant where an extensive breakfast is served daily and although the rooms are not super large, they are fully equipped.
2. GuestMar
This guesthouse run by two super friendly owners feels like you are living in their home. White and oak are the colours you will find here and the accommodation is also located in the cosy old city centre.
Coffee and tea are available all day and if desired the owners will provide a nice breakfast to start your day well. Even in high season this is still a reasonably affordable address.
3. Casa dos Ventos
In the hilly interior of the Algarve, less than 5 kilometers from Olhão, lies the guesthouse Casa dos Ventos on top of a hill. With just a handful of rooms, a large swimming pool and a sunbathing area, you can completely relax here at the end of a day of adventure.
The charming rooms all have their own bathroom, but downstairs where the hospitable owners live you can use the shared kitchen and living room if you wish. This casa was designed by the owners themselves and decorated in a beautiful authentic Portuguese style.
Restaurant tips in Olhão
Olhão has numerous restaurants and cafés where you can indulge in Portuguese delicacies such as cataplanas and piri-piri dishes. From small family-run establishments to more luxurious restaurants with dishes from all over the world. Here are my restaurant and café recommendations for Olhão:
1. Figo de Pita
For breakfast or lunch, Figo de Pita is the place to be. Quickly suffering from choice stress? Go for the brunch menu where you get bread with scrambled eggs or tofu plus a pancake, yoghurt with fruit, a juice and coffee. All this and more can also be ordered separately from the morning until the end of the afternoon.
2. Petiscais
This excellent restaurant is built in a former station hall, where you can still see parts of the old walls inside.
Nowadays they serve excellent Portuguese dishes such as chorizo, picanha (a kind of steak) and fried octopus. The mixed tapas to share as a starter is recommended.
3. Pizza na Pedra
Fancy a change? This Italian across from the market hall has been serving well-reviewed classics such as linguini, risottos and ‘just’ excellent pizzas in three sizes since 1999.
When making your reservation, ask for a table on the first floor to enjoy not only your meal but also the view over the coast.
Affordable car rental in the Algarve
The best way to discover all the beauty in the Algarve is with a rental car. By renting a car for a few days you can much more easily reach the sights and activities that are not always accessible by public transport.
By renting a car from Luzcar, you are helping a local family business run by Portuguese entrepreneurs. This way you support the local economy and you also get top service, which is often a stark contrast to the large corporations. Luzcar is based in Lagos, but they also offer cars at the airport in Faro. This way you can pick up the car immediately upon arrival and return it at the airport upon departure.
Luzcar’s reputation speaks for itself. Almost 5 out of 5 on Google Maps.
Parking in Olhão
If you come with your own or rented car, it is convenient to park the car on the edge of the city and continue on foot. In the low season it is not easy to find a parking space – let alone in the high season. To avoid unnecessary driving around, here is a list of parking spaces in Olhão:
Free parking in Olhão:
- Parking lot at the Av. 16 de junho in the southeastern tip of the city.
Paid parking in Olhão:
- Parking garage ‘Estacionamento do Levante’. This is the best option for paid parking. Plenty of space and affordable. (approx. 8 euros for a whole day)
- Along the Av. 5 de Outubro and the market hall. If you are lucky and find a spot here, you are right in the center and you are at the market hall. Pay via a parking meter.
- Across Real Marina Hotel & Spa. Pay via a parking meter.
Photo gallery of Olhão
Below you will find some more pictures of my visit to Olhão. Unfortunately it was a cloudy day, but hey, even in the Algarve the sun doesn’t always shine! Click on a picture to enlarge it.
More of our local tips for your Portugal adventure
⭐ Check out our favourite sights in the Algarve on this page
⛵ Check out this overview of all activities you can do in the Algarve
🚗 This is the best car rental company in the Algarve
📌 Discover the top towns and cities to visit in the Algarve here
🏖 These are our favourite beaches in the Algarve
🛎 Get inspired with our local tips for accommodations in the Algarve
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