Movie included the sea, love, paranormal, treasure?

Hi, I’m trying to find a movie I once watch in the early 2000s. I have reallyyy vague memories of this movie so please bare with me.

The movie contains strange looking people, maybe burnt curse items that look like treasure?, a man falling in love but have to eventually escape, it was foggy?, there the sea near the village, i think there was a fire incident, paranormal moments.
The strange people were dress in like victorian outfits and maybe pirates outfit too??, they had weird marking on their bodies (maybe). I think some them had fish scales or barnacles on their skin. I think a there was a man that had octopus face or beard that were tentacle?? They are apart of the fog, something about touching the burnt items bringing them back to the village?? The main male lead is a normal looking guy who stumble upon this village and finding these items in the sand?, fell in love with this beautiful woman but as the movie progress on, he notice odd things. Im not sure but i think he noticed they had these strange features in the beginning?? Maybe, Im dont know.
The movie had this dark/dreary overcast, I remember parts of the movie taking place at night (where the man is trying to make a run for it) and early morning where it grey/blue cause of the fog.

Also, thank you for taking the time to look at this ramble. I’m not sure if this help at all.