Olhao Waterfront
Budget in Olhao
Olhao is a working fishing town on the eastern Algarve coast that has resisted the resort development that transformed much of the region and instead maintained its identity as a place where people live, work and eat fish. The town's waterfront, dominated by two red-brick market buildings dating from 1912, is the focal point of daily life and the principal reason that a growing number of visitors are choosing Olhao as a base for exploring the Ria Formosa and the eastern Algarve.
The Mercado Municipal de Olhao is one of the finest food markets in Portugal. The fish hall is a spectacle of abundance: whole tuna, swordfish, monkfish, sea bream, clams, cockles, razor clams, sea urchins and percebes, the stalked barnacles that are a Portuguese delicacy, are displayed on marble slabs in quantities that reflect the town's status as the Algarve's most important fishing port. The adjacent vegetable market sells local produce, including figs, carobs, almonds and the honey that the region is known for. Arriving at the market early on a Saturday morning, when the fishing boats have unloaded and the traders are in full voice, is one of the most vivid experiences available in the Algarve.
Accommodation in Olhao is modest and affordable. There are no five-star hotels and no international chains. Instead, the market is served by a handful of small hotels and guesthouses, rental apartments in the old town and a growing number of properties on short-let platforms. The Real Marina Hotel and Spa, a four-star property on the waterfront near the ferry terminal, is the smartest option and offers rooms with views across the Ria Formosa from around one hundred euros per night. The city centre has several pensoes and guesthouses in the thirty to seventy euro range, many occupying upper floors of old buildings in the Moorish-influenced Cubist quarter, where flat-roofed, whitewashed houses create a geometric townscape unlike anything else in the Algarve.
Olhao's flat-roofed architecture is North African in character, a legacy of the town's historic trading links with Morocco and Tunisia. The old town, known as the Bairro dos Pescadores, is a dense grid of narrow streets that reward exploration on foot. The parish church, Nossa Senhora do Rosario, has a bell tower with views over the rooftops to the lagoon, and the waterfront promenade stretches from the markets to the ferry terminal and beyond.
Ferries depart from Olhao to the Ria Formosa barrier islands of Armona and Culatra, both of which have pristine Atlantic-facing beaches that are among the least developed and most beautiful in the Algarve. The crossing takes fifteen to twenty minutes, and the islands have small communities of fishermen's cottages, seasonal beach restaurants and very little else. For visitors who value unspoilt beaches over sunbed ranks and cocktail bars, these islands are a revelation.
Olhao's restaurant scene is excellent and affordable. The waterfront restaurants behind the market serve grilled fish and seafood at prices that are noticeably lower than resort areas. Specialities include cataplana de ameijoas, charcoal-grilled sardines and arroz de lingueirao, a rice dish with razor clams. The annual seafood festival, the Festival do Marisco, held in August on the waterfront, is one of the biggest food events in the Algarve, drawing crowds from across the region.
The town is five minutes by road from Faro Airport and connected by train and bus to Faro, Tavira and the wider Algarve network. For visitors who want to eat exceptionally well, explore the Ria Formosa, and experience a town that functions as something other than a tourist facility, Olhao is hard to beat.