One of the oldest settlements in Brazil, Cabo Frio was established in the early 1500s as a port from which wood was shipped to Portugal. Today it's best known for its lovely seaside setting and fresh seafood. Cabo Frio is a popular weekend getaway for residents of Rio de Janeiro and a favorite destination for water-sports enthusiasts. Don't miss the chance to go diving in Arraial do Cabo, which has some of the clearest water in Brazil.
Although they tend to be cheaper, Cabo Frio hotels are not as nice as those in nearby Búzios. If you are looking for chic lodgings, you're better off staying in Búzios and taking a day trip to Cabo Frio.