The village of Praia Vermelha (Red Beach) has just over 150 inhabitants and a small tourist infrastructure with restaurants, bars and ferry transfers daily to Angra dos Reis.The main activity is fishing, but there was also an attempt to grow seaweed (Kappaphycus alvarezii) and the booms used for this project remain in the bay.
According to residents, the Red Beach was named after a legend. The story goes that the Indians who lived there 550 years ago made bonfires on the beach and the next day the sand was red, hence the name. People living in this village took the test and say that this is real. Off the beach are the remains of one of the most famous shipwrecks on the coast of Ilha Grande – the California paddle-wheel steamer, sunk in 1866. No one knows for sure why it sank, but legend has it that it was attacked and burned by pirates.