The newest hotel zone is due west of the city along the coast, stretching for 5 km (3 miles) or so before the coast bends on the way to the small town, Camara de Lobos, and the high cliff, Cabo Girao.
About 3 miles up the coast is the small town of Camara de Lobos.
Camara de Lobos is a small city, 10 miles inland.