This is actually a good thing though as most of the nightlife in Sairee is based along the beach, so being set back from the beach is good as this means that noise isn't an issue if you want to have an early night every now and again. 

When you arrive on Koh Tao we recommend you take a taxi from the pier to Sairee, this should only cost you 50-100 Baht per person.  If the taxi driver doesn't know where it is then tell them it's located where Koh Tao Backpackers Hostel use to be located or you can tell them to take you to the Davy Jones Locker (DJL) Diving or Silver Sands and they'll bring you straight to the front door.