Paihia is the main tourist base for the Bay of Islands, a stretch of 144 islands off Northland's east coast that is one of New Zealand's most popular summer destinations. The town itself is small — a single main street of tour operators, cafes, and backpacker lodges — but the water is the point.
From the wharf you can book dolphin-watching cruises, sea kayaking trips, and the classic Hole in the Rock boat tour through the Motukokako sea arch at Cape Brett. Swimmers regularly encounter bottlenose dolphins in the wild. The beaches in and around town are sheltered and warm by New Zealand standards, and watersports from diving to parasailing are all on offer.
Paihia is also the jumping-off point for the Waitangi Treaty Grounds, where New Zealand's founding document was signed in 1840 — it is a short walk north along the coast. A passenger ferry crosses to the charming historic town of Russell in about fifteen minutes.