The village and the beach by the lagoon was locally known as Belcekız or Belceğiz before the area became a magnet for mass tourism, although today many people in the area have no idea about what Belcekız is and the town as well as the lagoon are both known as Ölüdeniz, which literally means “dead sea” and originally referred only to the lagoon itself.
Inland to the north, 2 km to Ölüdeniz, are the former villages of Ovacık and Hisarönü, with occasional family-run guesthouses only a decade ago, but are today concrete sprawls of hotels and bars, agglomerated almost without a gap with the town of Ölüdeniz. Both serve as “bedroom communities” that offer accommodation that is close to but cheaper than Ölüdeniz proper.
During the peak season in May to October, Ölüdeniz is filled with British tourists. It is a popular vacation destination for British citizens of whom many own homes there, so you wont even feel like you’re in Turkey. To get more of an authentic Turkish experience a stay in Fethyie is recommended, but even Fethyie has many British citizens during the peak season.
Paragliding. A number of companies in Ölüdeniz offer paragliding opportunities from the summit of nearby Mt. Babadağ, about 1,900 mt from the sea elevation. A “trip” from the top to the beach takes around an hour and offers stunning views of the Blue Lagoon and the valleys and mountains covered with pine forests around. Training and tandem flights are also possible for those unexperienced at paragliding. edit
Market: One thing to do while in Oludeniz is to get on the dolmus and go to the market in Fethiye on a Tuesday. There is absolutely everything there (including a lot of fakes). It is a very busy market not only used by holiday makers but by Turks buying their produce. Go to the fish stalls, buy some fresh fish and then go to one of the nearby restaurants where for a few TL will cook it for you.
Boat Rental: There are several people along the beach that offer rental of a small motor boat for a few hours. This is a great way to explore the small coves and beaches around the area without having to join one of the larger tour boats that go on a predetermined route. The prices are around 300 TL, expect to pay in cash.