The natural potential of this region contributed decisively to the current economic structure based on the following activities: agriculture, fishing, small industry and tourism.

Fishing activity (from the communities of Ferragudo, Benagil, Carvoeiro and Senhora da Rocha),
the vine culture (from Caramujeira and Vale d’El Rei) and the traditional rainfed culture were, until a few decades ago, the main sources of revenue in the municipality.

Driven by fishing, the canning industry, at the beginning of the last century, hit these places bringing with it great prosperity and wealth.

However,
from the 1960s onwards, tourism was the main driver of the development of the municipality, creating the necessary structures to support the dynamization of the economic fabric, with important repercussions on the job market, namely in terms of job creation. This activity quickly became an engine of the local economy,
the great lever of development, becoming a permanent and structural landmark of the county’s economy. The areas considered as most luxurious stand out in this area of ​​tourism: Albandeira, Caramujeira and Monte Carvoeiro. Praia da Marinha, on the other hand, has become an international tourist reference.