Sipalay's beaches are the main draw. Sugar Beach, a 15-minute boat ride from the city proper, is the star -- fine white sand lined with small resorts run by a mix of German, Swiss, and Filipino owners. Driftwood Village has a native vibe, Takatuka has great pizza, and Sulu Sunset is the place for late-night drinks.
Punta Ballo is a long white sand stretch southeast of Sipalay, popular with divers. Artistic Diving and Easy Diving both operate from here with trips into the Sulu Sea. Not far away, Tinagong Dagat (the 'hidden sea') is a sheltered lagoon sprinkled with small islets, old-growth mangroves, and sea grass beds.
Campomanes Bay is excellent for water sports of all kinds. The enclosed shape of the bay keeps the water calm even in rough weather, and the entrance is a wide expanse of coral garden. The bay has port facilities and serves as a marine reserve.
Danjugan Island, off the coast, is a protected marine and terrestrial reserve with beautiful lagoons and diverse wildlife, including the endangered white-breasted sea eagle.