Arraial do Cabo

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. Gorgeous beaches and craggy rock formations surround the village—don't miss the Gruta Azul, a 15-meter-tall (49 feet) cave over the blue sea. It's a popular destination for scuba diving and there are many PADI-accredited dive schools here, while 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.