The small but important tourism industry in Kudat town revolves largely around its laid back atmosphere and its proximity to the sea. Visitors from throughout Sabah come to Kudat to purchase its fresh seafood and to experience the charms of a typical Sabahan country town. Tourist attractions located in the town proper include the Kudat Golf Club, Sidek Esplanade, central market and fish market.
Kudat is famous for its beaches, which are among the most unspoilt in Sabah. Some of the more well known beaches include Bak Bak, Pasir Putih, Kalampunian and Torungkungan. Kudat is also notable for its proximity to Tanjung Simpang Mengayau, a headland which forms the northernmost point of Borneo island.
Several villages along the Kota Kinabalu – Kudat road each showcase one particular aspect of Rungus culture. In Kampung Gombizau (Gombizau village), visitors can observe the production of honey and gathering of traditional Rungus herbs, whereas Kampung Sumangkap is famous for its gong-making industry. Kampung Bavanggazo on the other hand is noted for its traditional Rungus longhouses, which are part of a community project offering tourists the chance to experience and learn about the culture and lifestyle of the Rungus people. Rungus culture can also be experienced at the Misompuru Homestay Programme, which is centred around Kampung Minyak.