No doubt it was Gramado's mild mountain climate that attracted German settlers to the area in the late 1800s. They left a legacy of German-style architecture and traditions that attract today's travelers. Ample lodging options and a seemingly endless choice of restaurants have given this city a reputation with conventioneers and honeymooners.
Every August the city hosts the Festival de Cinema da Gramado, one of Latin America's most prestigious film festivals. At Christmastime the city is aglow with seasonal decorations and musical performances of the Natal Luz (Christmas lights) festivities. During peak periods around Christmas and in July it can be difficult to find lodgings without a reservation.