The Knysna National Lake Area like the Wilderness and West Coast national parks is in an area where the demands of leisure activities are heavy, and the National Parks Board aims to maintain a healthy balance between conservation of the environment and the utilization and development of recreational facilities. The exceptionally beautiful Knysna National Lake Area is home to the endangered Knysna seahorse and a large diversity of marine life. Sandbanks and salt marshes teem with life and in turn provide food to an immeasurable number of organisms.

The lagoon in the Knysna National Lake Area is rich in invertebrate organisms and fish which in turn support a wide variety of water birds. During the summertime Grey Plovers, Greenshanks and Sandpipers are amongst the birds which can be spotted, while the winter season sees Egrets, Cormorants, Ibises and Gulls taking sanctuary in the lagoon. Also on show for bird watchers are the Cape Shoveller, Blackwinged Stilt, Avocet and the endangered African Black Oystercatcher. The Knysna Marine Reserve which falls within the Knysna National Lake Area, has been established as a closed breeding area for invertebrates (bait organisms) to be used for restocking areas open to exploitation. Fishing is allowed but no bait may be collected in this area.

The Knysna National Lake Area is an area of unsurpassed beauty and splendor, offering various water sports such as boating, angling and diving. It is surrounded by a natural paradise of lush indigenous forests, tranquil lakes and golden beaches, making it a real natural wonderland. As a result of a relaxed lifestyle, Knysna has over the years, attracted a wide variety of art and crafters, creating an artists' paradise. There are numerous galleries where one can enjoy the local arts and crafts and appreciate the talent and work that is produced here.