Olhão, officially known as Olhão da Restauração, is a city and municipality in the Algarve region of southern Portugal. The population of the mun…Olhão, officially known as Olhão da Restauração, is a city and municipality in the Algarve region of southern Portugal. The population of the municipality in 2011 was 45,396, in an area of 130.86 km². Located near the regional capital Faro and forming a single urban agglomeration, it is a fishing port and tourist center. Along with Faro, Loulé and Tavira, Olhão forms a conurbation from the eastern and central Algarve.