It is hardly surprising that this charming fishing town of whitewashed houses,
overlooking a sheltered beach, has become the tourist capital of the Algarve.
The Romans liked it too, and built a castle here. For the Arabs it was Al-Buhar
(The Castle on the Sea), and under them it prospered from trade with North
Africa. The Knights of Santiago took it in the 13th century, but the consequent
loss of trade almost ruined it. In 1833 it was set on fire by supporters of Dom
Miguel during the War of the Two Brothers.

Much of the town centre is pedestrianized, including the oldest part around Rua
da Igreja Velha where some of the buildings still have original Moorish arches.
The church of São Sebastião , on Praça Miguel Bombarda, has a
Manueline doorway. Rua 5 de Outubro leads through a tunnel to the beach, east of
which is the Praia dos Barcos  where the fishermen ply their
trade. From Praia de São Rafael , 2 km (1 mile) west of
Albufeira, to Praia da Oura  due east, the area is punctuated
by small sandy coves set between eroded ochre rocks.