Loulé is an important rural administrative and active market town with more than 20.000 residents. The weekly fair is attracting tourists from all along the Algarve. And the annual Carnival in February is considered one of the best in Portugal.

The earth quake in 1755 has destroyed, like in most other towns in the Algarve, most of the historic buildings. Today you can only see some remains of the Arab castle and the Gothic Church of S. Clemente.