Lisbon is older than Rome or any other Western European capital, dating back at least to the 12th century BC, when Phoenician sailors built a settlement atop São Jorge. In its Golden Age of Discovery, it gained a reputation as the eighth wonder of the world as visitors returned to their homes with tales of riches rivaling those of Venice. That was because, as one of the greatest maritime nations in history, the Portuguese capital imported unprecedented wealth and exotic wares from the far-flung corners of its empire. The influx of treasure enabled the kings to build a magnificent city of palaces, cathedrals, grand squares, landscaped gardens, ornate fountains, and monuments.

Today, after a decades-long slumber, there is excitement again thanks to its preparations for EXPO '98, which marked the 500th anniversary of Vasco da Gama's journey to India, welcoming the world to a brighter, restored city. In the oldest parts of town, pastel houses line tiny, stepped alleys, while in the grand 18th-century center, wide boulevards are bordered by black-and-white mosaic cobblestone sidewalks. Everywhere you'll see the striking blue-and-white azulejo tiles introduced by the Moors, who ruled from the Alfama district from the 8th to the 11th centuries, after which the Christians recaptured the city. Many visitors are happy to spend the entire visit in the ancient hilly capital, but if you want to venture farther afield, there are cosmopolitan seaside resorts nearby, nature preserves, aristocratic country homes, and many pretty villages.