I stayed in El Palo for a week. It is just an extension of Málaga. There are many small shops, great ice cream in the summer, and many small restaurants serving freshly caught fish. The beach is not great in the Málaga area because it is not a natural beach. It is also crowded in the summer.
Why do you ask? Are you planning on visiting Málaga?
Nerja is nearby town that is nice.
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sel