This area is a great place to relax due to the fact that it never developed as much as Sairee.

Starting from the south of the island you find Sunshine Resort which offers over 100 bungalows in different price ranges. Also try the little beach bar that is located just next to Sunshine Divers. Very chilled place for a drink after a day in the sun. Just next to Sunshine you have on of the largest dive resorts on Koh Tao - Buddha View. Try the BBQ at Buddha View Dive resort. Great value for your money. Carabao is next to Buddha View and is one of the first dive centers on Koh Tao (and also the first one I worked for when I arrived on the island).

Walking the beach a bit further down you find Big Fish Dive Resort and Koh Tao Resort. Koh Tao Resort is the resort that www.visitkohtao.com chose to promote in this area. The resort features some really beautiful bungalows and rooms. The location is great and the pool with a bar just next to it looking out into the ocean was the selling point when I stayed there for a few nights earlier this year. While staying in Koh Tao Resort walk the hill up and you will come to what I believe is one of the most beautiful beaches on Koh Tao. The name is Rocky Bay (or Shark Bay after all the Black Tip Reef Sharks you can see here).

Also try New Heaven Restaurant that is located just between Chalok Ban Kao and Rocky Bay. You got to try their Blueberry Pancake its worth walking up the hill for. There is so much more going on around this area but walk around and explore for your self.