Olhão is the Algarve's secret holiday spot to know about

Venturing east from Faro to the still unspoilt fishing town of Olhão and the idyllic islands nearby, Lulu Townsend discovers just how easy it is to escape the Algarve’s summer crowds

Aerial view of Olhao with a church in the foreground by sunset, Algarve, Portugal

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Even during the summer months, when the Algarve is overflowing with visitors, this part of Portugal is a wonderful place to be. A conversation about the Algarve usually involves Vale do Lobo or Quinta do Lago and all that is west of Faro. Think again. Just 15 minutes east of Faro sits the enchanting, Cubist and whitewashed fishing town of Olhão. If you do not want to hire a car, it is easy to flag a taxi from the airport for the short journey, which should set you back only €25.

The harbour is busy with weathered fisherman who head out every morning for their daily catch. Some still get as far as Morocco in their boats, which explains how, over the years, Moroccan architectural influences have permeated the town. Indeed, Olhão in many ways resembles the Moroccan seaside town of Essaouira with its whitewashed houses and flat roofs.

Dating back to the 17th century, Olhão feels like one of the most authentic southern Portuguese towns, casting a spell on those who pass through. Yet, strangely, tourism is not a key driver – perhaps because specific historical sites are thin on the ground. Be sure, though, to look up as you wander round the charming old town, an area that is rich in architectural delights with houses festooned with multi-hued, decorative Portuguese tiles, ornate balconies, crumbling façades and cascading bougainvillea.

Boats in the harbour of FusetaNikada

The harbour opens onto the calm lagoons and waters of the Parque Natural da Ria Formosa, a small group of barrier islands that stretches east from Faro to the Spanish border. These local islands, where a handful of residents and fisherman live and work, are home to beautiful, clean beaches with simple bars, authentic restaurants and an enviable – almost otherworldly – pace of life.

A great way to explore this group of islands is on a day’s boat trip, stopping off at each one. The stunning, unspoilt, car-less islands of Armona, Culatra and Farol (these last two are actually two different parts of the same island, though the local names suggest otherwise) are a short and cheap ferry ride from Olhão’s marina. During the summer months, there are up to 20 ferries a day with a return ticket costing just €3.70.

Culatra has long, sandy beaches with crystal-clear waters on the south and quiet lagoons on the north, and is dotted with restaurants. Head to Molhe Leste, a laid-back beach bar midway down the southern stretch of beach, run by marine biologists, where you can rent sun loungers and umbrellas for €12 a day. From here, it is a 30-minute walk to the small fishing village of Farol, which is famous for its lighthouse. Do this last on your day trip and you can take the ferry directly back from there to the mainland.

The closest island to the mainland and one of the largest in the Algarve is Armona. A 15-minute walk from the ferry takes you over the island to the dune-flanked, glittering sea and empty beach of Praia da Armona (Mar), which extends in both directions as far as the eye can see. At the end of the day, allow enough time to stop at the family-owned restaurant Lanacosta for fresh grilled squid or sea bass and a refreshing mojito or two.

Shutterstock / Armando Oliveira

As is the way in Olhão, the locals gather and eat out regularly; you will hear Portuguese spoken more than any other language, a testament to the town’s pleasing lack of tourists. Restaurants and cafés spill out onto the cobbled streets, which, under the magic of the soft evening light, resemble a theatre set. Menus focus on simple grilled fish, the catch of the day with garlic and piri piri taking centre stage. Head to Chá Chá Chá (Travessa do Gaibéu 19), one of the best restaurants for authentic Portuguese cuisine. And let us not forget the ubiquitous Portuguese pastry, the pastéis de nata custard tart, found at its most delectable in Olhão at Kubidoce café and bakery (Estrada Nacional). This is an excellent place, too, at which to buy delicious bread for picnics on the islands.

Recent years have seen a flurry of new accommodation in Olhão, from small boutique hideaways to spectacular rentals. Casa Fuzetta, in the old town, originally a classical gentleman’s residence, falls into the latter category. Renovated and restored by an English couple over a period of two and half years, this magnificent property, sleeping up to 24 guests, is ideal for large families or groups of friends looking for a luxurious base to enjoy a fun time together.

Casa Céu is a recently opened adults-only bed and breakfast – contemporary, charming and located in the heart of the old town. Owners Lara and Dario Ottelli, who hail from Mozambique and Switzerland respectively, looked at more than 30 properties over the course of 10 visits to the town before finding and falling in love with what is now Casa Céu. The four simple but invariably chic bedrooms, each one named after a different indigenous Portuguese tree, are individually designed and decorated with contemporary artwork by the likes of local artist Meinke Flesseman and charcoal drawings by Lara’s father Helio Martins Gomes. Laranjeiras (Orange Trees) is the loveliest room and has its own private balcony. Breakfast is a particular highlight – served on the beautiful roof terrace and offering a Portuguese feast of pumpkin omelette, seven-seed bread, homemade tarts, cakes and home-stewed fruit with yogurt.

This pristine and refreshingly undeveloped corner of the Algarve is a veritable hidden gem with its bird-filled lagoons and sandy islands, where, for a few days, you can live like a local far from the madding crowds.

Ways & Means

Lulu Townsend stayed as a guest of Casa Céu, where rooms cost from around £88 a night for a minimum of two nights, B&B. Casa Fuzetta, which sleeps up to 24, is available to rent for a minimum five-night stay from €9,100 during low season.