The history of Fajara and the Gambia's Altantic coast resorts is a comparatively recent one. Prior to the latter 20th century, the area was inhabited by indigenous communities whose living depended on catches from the sea and the river. Portuguese activity in nearby Serekunda began possibly as early as the 17th century; the Portuguese were soon replaced by the British. Serekunda became a significant regional market, but the coastal area remained mostly off the beaten track.

Fajara's modern history really begins with the advent of mass travel in the 1960s. Following Gambian independence from British colonial rule in 1965, the economy boomed for a time as tourism flourished and world commodity prices for groundnuts soared. While in the long-term the price of groundnuts would eventually become, well, peanuts, tourism continued to prosper. Eventually a string of mass-market, beachside resort hotels and associated businesses would be developed on a 10km (6mi) strip south of the mouth of the Gambia River, catering mostly to European sunseekers.

Several issues have plagued the resorts in recent years. 'Bumsters' - young unemployed Gambian men who hound tourists endlessly in the hope they will eventually engage them as tourist guides - are a commonly-cited annoyance. There is now an area outside the Senegambia Hotel in Kololi where tourists can engage the services of officially accredited guides at fixed prices. A spate of drownings - six children in the waters off Fajara in 1998, and eight more in 1999 - has led to the establishment of a surf lifesaving service. Also of concern is the Gambia's reputation in recent years as a sex-tourism destination. A longer-term problem concerns a drop-off in tourism levels due to global tensions.

Finally, the area's beaches are eroding due to strong tides, arguably exacerbated by rising sea levels and overdevelopment. In some cases the water has come perilously close to the hotels, and additional sand and rocks have had to be trucked in. This may the only solution in the foreseeable future.