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 km. 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.