The bay hosts a large fleet of fishing boats which operate off the beach. Many organizations donated boats after the tsunami and as a result there are far more fishing boats than ever before. The main beach is bit dirty as it is used as a garbage dump and a toilet by some locals. Nearby beaches are more esthetically pleasing and also have excellent waves. Arugam Surf Point has a very long, consistent, sectiony right hand break. There is excellent elephant viewing nearby as well as two types of monkeys wandering around the area.
The nearby (4 km) Muslim village of Pottuville is the center of commerce and transportation while tourist accommodations lie along the beach to the south of Pottuville. Arugam Bay is also the gateway and only access to the Yala East National Park.