Praia do Túnel
Praia do Peneco (also known as Praia do Túnel) is one of Albufeira's two main town beaches. In fact it really is part of the same stretch of sand as neighbouring Praia dos Pescadores with just the jetty and slipway separating the two.
Peneco beach is named after the huge sandstone rock which rises out of the sand towards the western end of the beach. Penedo is the Portuguese word for boulder.
As you might imagine, being the main beach at one of the Algarve's most popular holiday resorts means Praia do Peneco can become very busy during the main holiday season. There is no shortage of bars and cafes behind the beach and this is a lively spot well into the evening.
The name Praia do Túnel, or Tunnel beach, comes from the 20 meter long tunnel which cuts through the cliffs joining the old town square to the beach. This isn't the only way to reach the beach though with the most dramatic being via the 28 metre high elevator that runs from the top of the cliffs. This was opened in 2008 and can carry 13 people at a time.
Just beyond the cliffs at the far end of Peneco is a small cave known as the Gruta (grotto) do Xorino. This cave was reputedly used as a shelter by the Moors during the Christian reconquest of Albufeira in the 13th century. It can be reached by following the promenade behind the beach.