Arugam Bay was awarded the Highly Commended Best Destination award at the World Travel Market Responsible Tourism Awards Ceremony at Excel in Docklands, London on 14th November 14, 2007. Out of the thousands of nominations received, Costa Rica and New Forest were the other two nominees.

Arugam Bay is classed among the top ten surfing destinations in the world. The village itself is a delightful experience. There are no big hotels. The community has developed tourism by dint of their own hard work and imagination.

Three star establishments rub shoulders with low-key stilt cabins and coconut palm leaf cabanas, and tourists share the beach with local fishermen.

The wild and rugged scenery, elephants meandering at the edge of the village, abundant birdlife, and mysterious archaeological sites have made this a long-time favourite destination for travellers.

The three ethnic groups – Sinhalese, Tamils and Muslims, work and live in harmony. The population of 3,000 families is made up mostly of small family managed hotels/guest houses and restaurants.