The primary tourist attraction of Panglao are its white sandy beaches, of which Alona Beach is the most famous and most developed. Alona Beach is about 1500m long, lined with palm trees. resorts, and shops. However it has drawn criticism for its unrestrained development that ignored municipal development policies, warning against overcrowding and Alona to lose its paradise-like image. Therefore, the municipal, provincial and national governments are ploughing ahead with a plan to build a new international airport on Panglao island, with the final approach path directly over Alona beach. Currently plan is to be operational at the end of 2018. Other beaches include Bagobo, Bolod, Danao, Doljo, and Momo Beaches.
Panglao is renowned for snorkeling and dive sites such as Doljo Beach, Garden Eels, Arco Point, Kalipayan, Napaling, and Puntod. The island's southern portion is ringed with reefs that are relatively narrow and shallow (5to) with submarine cliffs plunging to depths of 33to. Tours can readily be arranged to further dive sites, including Balicasag and Pamilacan, Bohol islands.