Kenmare is located at the head of Kenmare Bay (where it reaches the farthest inland), sometimes called the Kenmare River, where the Roughty River (An Ruachtach) flows into the sea, and at the junction of the Iveragh Peninsula and the Beara Peninsula. The traditional Irish name of the bay was Inbhear Scéine from the Celtic inver, which is recorded in the 11th Century narrative Lebor Gabala Erenn as the arrival point of the mythological Irish ancestor Partholón. It is also located near the Macgillycuddy's Reeks, Mangerton Mountain and Caha Mountains and is a popular hillwalking destination. Nearby towns and villages are Tuosist, Ardgroom, Glengarriff, Kilgarvan, Killarney, Templenoe and Sneem.
Kenmare lies on two noted Irish tourist routes, the Ring of Kerry and the Ring of Beara, approximately 32 kilometres (20 mi) from Killarney. As a result, it is a popular tourist destination and many of the businesses in the area cater to tourists. The town is noted for its food and pubs. Kenmare has a range of restaurants and traditional pubs.
Since the late 1990s the tourism industry has driven local construction work,[citation needed] with land being sold at high prices to developers wishing to build estates of holiday homes. This has led to an increase in the town's population, particularly during the peak tourist season, and prompted fears among some residents that the town is becoming overdeveloped and losing much of its identity.
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