Perched on the steep banks of the River Douro, Porto is many people's favorite part of Portugal. A center for the arts, culture, and cuisine, picturesque Porto has come into its own as a modern city with plenty to offer beyond its best-known export, port wine.

Although steep streets traverse downtown neighborhoods like Baixa and Ribeira, the city is compact and easily navigated on foot (just be sure to wear comfortable shoes and allow plenty of time for pit stops in the many cafés and restaurants you'll encounter along the way).

Across the river, sister city Vila Nova da Gaia revels in its status as center of the port wine industry, with an opportunity to sample the local tipple at virtually every scenic step. And while few people think of Porto as a beach destination, no summer visit to the city is complete without a trip west to Foz do Douro, which is known for its restaurants and hotels that gaze out to sea.

A trading hub since pre-Roman times, vibrant and cosmopolitan Porto has more baroque treasures than Lisbon. Its grandiose granite buildings were financed by the wine trade that made the city wealthy: wine from the upper valley of the Rio Douro (meaning "River of Gold") was transported to Porto, from where it was exported. You can still experience that richness today.