Fethiye is one of Turkey's well-known tourist centers and is especially popular during the summer. The British population in Turkey is between 34,000 and 38,000. As a result of the large British population and the high numbers of Britons going there for a holiday, Fethiye-Ölüdeniz was chosen as the best tourism center in the world by The Times and The Guardian newspapers in 2007. Over 7,000 British citizens permanently live in Fethiye, while approximately 600,000 British tourists visit the town every summer. The Fethiye Museum, which is very rich in ancient and more recent artifacts, displays and testifies to the successive chain of civilizations that existed in the area, starting with the ancient Lycians. Fethiye is also home to the Tomb of Amyntas, a large and beautiful tomb built in 350 BC by the Lycians. What makes this tomb unique is its massive size and beautiful carvings. Some of the other historical sites worth visiting are Kadyanda Ancient City, Kayakoy- old Greek town, Afkule, Gemiler and Aya Nikola. Most popular touristic towns of Fethiye are Ölüdeniz, Calis Beach area, Hisaronu, and Ovacik. The most popular things to do in Fethiye and nearby areas are paragliding over Oludeniz, horse riding in abandoned Greek settlement of Kayakoy (ghost town), the visit to the longest canyon in Turkey - Saklikent, mud bath in Dalyan. The island Kızılada in the Gulf of Fethiye, which is 4 mi (6.4 km) off the city, is a popular stopover for boat tours.The Kızılada Lighthouse on the island houses a seafood restaurant and a hotel with nine rooms. Butterfly Valley is in the Fethiye district.

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