Pen-y-Banc is ideally situated for a wide range of holiday activities. Easy to strenuous walking is close at hand, as is fishing on the River Towy (club or private waters). For birdwatchers, this is Red Kite country, with the RSPB reserve at Dinas. The WWT reserve at Penclacwydd is 45 minutes away, adjoining the Llanelli Millennium Coastal Park. West of this is Pembrey Country Park, with its magnificent award winning 3 mile beach. Horse riding is also available.

For lovers of history the castles of Carreg Cennen, Dinefwr and Dryslwyn are about 20 minutes drive, as are the recently opened Aberglasney and National Botanic Gardens. Even closer are the small market towns of Llandeilo and Llandovery (which has an excellent Heritage Centre, and indoor swimming pool, jacuzzi and sauna).

Less than an hour's drive away are the Brecon Beacons, the waterfalls of the Neath Valley, the National Showcaves at Dan-yr-Ogof, and the beaches of Gower, Pembrokeshire and Cardiganshire.

The forests north of Llandovery, and at Brechfa are often included in stages of the Network Q and other rallies. "Off-road" bike and car events are also staged in these areas.