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Ponta do Sol is located in the southwest of Madeira Island, west of the island's largest city Funchal. It is a small municipality of ~8000 inhabitants.
The village was founded by Portuguese settlers in 1420, later became a municipality in 1501, and has been a municipality ever since.
In the beginning, the population lived from fishing and agriculture, but now fishing has disappeared and agriculture remains the main source of livelihood. In addition to this, of course, the municipality also earns a good income from tourism.
There are a lot of attractions that you can visit in the municipality of Ponta do Sol, so it is worth staying here for a few days when you visit the Madeira archipelago.
It is a 10.5 km long trail on the beautiful island of Madeira. It takes ~3:30 hours to complete this moderate trail in nature where you can experience the natural and historical wealth. The trail starts near the Church of the Lombada in Ponta do Sol.
You can admire on the trail three ruins of water mills, stone tunnels, the settlement of Ponta do Sol, and waterfalls during this 3-4 hours.
It isn't the biggest one in the Madeira Islands, but it is enough for a few days of chill. If you want a beach with better water life you should take a look at the island of Porto Santo where you can find more services on the water.
The beach here is beautiful, nice but small and I think that it is worth a few days but not more. Here there are fewer tourists than in the other parts of the Madeira so you can enjoy the beach with just a few tourists.
This waterfall crosses the road so you just have to stop with your car(or the rented one) and enjoy the view of a wonderful waterfall. I think that you should visit it in the golden hours because the colors are awesome in the water.
It is east of Ponta do Sol just a few kilometers away, so if you are in the municipality you have to visit this waterfall.
Looking for hotels at the best price/value is always hard work so I decided to do the job for you. Here are my recommendations.
The Enotel Sunset Bay Hotel is a 4-star hotel with a private bathroom for each room on the beach so when you exit the Hotel your feet are on sand. It can book by breakfast but I think that it is a good value. It's easy to start the day, you don't have to look for breakfast in the morning but you can taste the local foods at lunch and dinner.
This hotel is a bit far from the beach but its environment is a paradise among the trees. If you want to chill and relax in the calm zone of Madeira this is the best option that you can choose. This hotel offers an airport shuttle, so when you land in Funchal you don't have to worry about transfer to the hotel, a driver will await for you.
I found the cheapest and most enjoyable solution who want to visit Madeira at the cheapest price. This hotel offers ~80 euros/night based on the time when you book. It isn't on the beach but when you are looking for the lowest price you have to make compromises.
In conclusion, Ponta do Sol is for those who looking for a calm and cheaper zone in Madeira with fewer tourists. You can rent a small ship and explore this part of the island, you can visit a long trail under the name of Levada do Moinho. The small beach offers a familiar zone to swim in the Atlantic Ocean.