We went to a place a few years back called Caleta de Fuste, in Fuerteventura. It is a purpose built holiday resort, with few hotels, lovely beaches, every type of restaurant you could think of, bars, crazy golf, etc. It's all contained in the resort, but it looks like a town, and I remember it being pretty cheap. If you want to get out there are lots of excursions you can go on (which can be pricey), but it's quite cheap to hire and got to places of interest yourself.