Saint-Jean-de-Luz bay is situated to the east of the Bay of Biscay. It is the only sheltered bay between Arcachon and Spain. Thanks to its strong sea walls or dykes that protect the town from the full savagery of the Atlantic ocean, it has become a favourite for bathers across the Basque Coast. The seaside resort itself is relatively recent, however the port is old.

Water from the area flows into the town from the Nivelle and its smaller tributaries, the Etxeberri, Isaka and Xantako streams. There is also the Basarun, and its smaller tributary the Mendi, which passes directly through Saint-Jean-de-Luz. The river has been made accessible to boats and it joins the sea by the Erromardia beach. A branch of the Uhabia, an emblematic river in the neighbouring Bidart district, and its smaller Amisola tributary, also pass to the sea through St Jean de Luz.

Nowadays, St-Jean-de-Luz depends strongly on tourism with safe clean beaches, notable high quality hotels and a thalassotherapie spa, swimming pools, a casino, golf courses and a new conference centre that is under construction. The town also benefits from regional tourism, with many attracted by the pedestrian area full of shops open all year round. It also attracts a large number of visitors from Basque Country, Spain, or Gipuzkoa along with many from nearby Bayonne and the rest of southwestern France. The city is particularly attractive to retired people, many of whom come to settle there from other areas across France.

Many cultural and sporting events are held throughout the year. There are internships and public concerts of classical music organized by the Académie Ravel, usually in the auditorium of the same name. There is a film festival dedicated to young filmmakers, a surfing film festival and Basque Pelota championships.

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