The town is so named due to its position near the estuary of the Kemaman River, whereby taxes and levies were imposed on riverine traffic, especially during the British colonial period.

Chukai is the largest town in southern Terengganu, and its position between the state capitals of Kuantan and Kuala Terengganu as well as proximity to the oil town of Kerteh has turned Chukai into a major commercial hub for the region.

[2] Other attractions in the vicinity include: Many beaches are within a short driving distance from Chukai.

Club Med Cherating Beach is about a 15 minutes drive south away from the town centre, towards Kuantan, Pahang.

Another world class resort nearby is the Resorts World Kijal (formerly Awana), about 25 minutes drive north from the town centre, towards Kuala Terengganu, the state capital.