Bundoran is a town in County Donegal, Ireland. The town is located near the N15 road near Ballyshannon, and is the most southerly town in D…Bundoran is a town in County Donegal, Ireland. The town is located near the N15 road near Ballyshannon, and is the most southerly town in Donegal. The town is a tourist seaside resort, and tourism has been at the heart of the local economy since the 18th century. Bundoran is a surfing destination and was listed by National Geographic magazine in 2012 as one of the world's top 20 surf towns.