Punta Arenas

Founded a little more than 150 years ago, Punta Arenas ("Sandy Point") was Chile's first permanent settlement in Patagonia. Great developments in cattle-keeping, mining, and wood production led to an economic and social boom at the end of the 19th century; today, though the port is no longer an important stop on trade routes, it exudes an aura of faded grandeur. Plaza Muñoz Gamero, the central square (also known as the Plaza de Armas), is surrounded by evidence of its early prosperity: buildings whose then-opulent brick exteriors recall a time when this was one of Chile's wealthiest cities.

The newer houses here have colorful tin roofs, best appreciated when seen from a high vantage point such as the Mirador Cerro la Cruz. Although the city as a whole is not particularly attractive, look for details: the pink-and-white house on a corner, the bay window full of potted plants, and schoolchildren in identical naval peacoats reminding you how the city's identity is tied to the sea.

Although Punta Arenas is 3,141 km (1,960 mi) from Santiago, daily flights from the capital make it an easy journey. As the transportation hub of southern Patagonia, Punta Arenas is within reach of Chile's Parque Nacional Torres del Paine (about a four- to five-hour drive, thanks to a new road) and Argentina's Parque Nacional los Glaciares. It's also a major base for penguin-watchers and a key point of embarkation for boat travel to Ushuaia and Antarctica.

The sights of Punta Arenas can basically be done in a day or two. The city is mainly a jumping-off point for cruises, or for traveling up to Torres del Paine, which is most pleasantly done by staying in close by Puerto Natales, a town that's gaining ground over Punta Arenas as a vacation destination. Something of a giant service station of a city catering to energy companies, its port, tax-free electronics, the military, and only some tourism, Punta Arenas seems unable to make up its mind what it wants to be, and it suffers from a lack of cultural activities (a few good museums notwithstanding) and an exodus of its young people.