Vilanculos is the main gateway to the Bazaruto Archipelago and, for many visitors, the highlight of a Mozambique trip. It's a small, relaxed coastal town that has grown considerably with tourism without losing its easy character. The beach in town isn't the finest — you're here to reach the islands — but the sunsets over the bay are spectacular.
Most travellers pass through Vilanculos on the way to Bazaruto or Benguerra Island, staying a night or two to sort logistics. The town has a good spread of accommodation, from backpacker lodges to mid-range hotels, plus restaurants serving excellent fresh seafood. The local market is worth a wander. North of town, the red dunes that give the coastline its distinctive terracotta colour drop to pale sandflats at low tide — good for a walk.
The classic activity in the bay is a day out on a traditional dhow. Local operators run trips to sandbanks and snorkelling spots using the same wooden sailing boats that fishermen have used along this coast for centuries. It's unhurried, practical, and often the most memorable day of a visit.