Nicknamed the "Caribbean of Brazil" in honor of its translucent white sands and crystal clear warm waters, Arraial do Cabo is a favorite destination for divers and sunseekers alike and lies just 10 km (6 miles) south of Cabo Frio. The village is surrounded by gorgeous beaches and craggy rock formations—don't miss the Gruta Azul, a 15-meter-tall cave over the blue sea. PADI-accredited dive schools can be found in abundance here, and skippers wait at the harbor to whisk visitors to the best beaches and vantage points, often stopping for lunch at a floating restaurant. The sunsets over the small beach Prainha Pontal do Atalaia are often quite stunning. There's a handful of pousadas here, but there are cheaper and better options in nearby Búzios, which is a quick bus or cab ride away. While neighboring Cabo Frio is one of the oldest settlements in Brazil and shares the same crystal blue waters, a recent spike in crime and a boost in mass low-level Brazilian tourism have contributed to it becoming a less desirable tourism destination.
While Arraial do Cabo is one of the best places in Brazil for snorkelling and scuba diving, as well as having a decent surf and kite-surf scene, it's very low-key in terms of its hospitality infrastructure, so keep expectations to a minimum and come to revel in the crystal clear turquoise waters. There's a handful of good-value pousadas, but if you want a more sophisticated scene, head to Búzios, an hour's drive away.
