Hi, if you are into castles you could go to Castro Marim a few miles up the road and then go on up to Alcoutim both have fine castles, and if you don't mind going a bit further you could go up a bit more into the Alentejo area and visit, Mertola this town is like going back in time and is a good day out.
There is also Tavira another nice town that also has a castle and a sand spit with a great beach, our what about Faro with its old walled town, cathedral and the church Igreja do Carmo with its Chapel of Bones. It also has some good shops, harbour, Museu Munisipal and the Museu Maritimo. This should give you a few things to take a look at.
P S we go to V R D S for our towels and so do half of Spain.