Originally a small fishing town, tourism to Playa del Carmen began with the passenger ferry service to Cozumel, an island across the Cozumel Channel and a world-famous scuba diving destination.

Playa del Carmen is a coastal resort town in Mexico, along the Yucatán Peninsula’s Riviera Maya strip of Caribbean shoreline. In the state of Quintana Roo, it’s known for its palm-lined beaches and coral reefs. Tourist activity in Playa del Carmen centers on Quinta Avenida, or Fifth Avenue, which stretches from Calle 1 norte to Calle 40 and runs parallel to the beach, with blocks of shops, restaurants and nightspots ranging from laid-back bars to dance club.

A pedestrian walkway located just one or two blocks inland from the beach, Fifth Avenue is lined with hundreds of shops, bars and restaurants. There are many small boutique hotels on and just off Fifth Avenue and on the beach. Playa del Carmen is distinct among Yucatan beach towns both culturally and commercially. While its beaches are similar to other destinations', its nightlife and hotel culture is hipper in the European and American style, blending the traditional Mexican locale with a more permissive and opulent array of tourist options.

Playacar is a residential and tourist development in Playa del Carmen just south of the main urban area. Most of the all-inclusive hotels, the aviary and the golf course are located in this development.