Lima

When people discuss great cities in South America, one that is often overlooked is Lima. But Peru's capital can hold its own against its neighbors. It has an oceanfront setting, colonial-era splendor, sophisticated dining, and nonstop nightlife.

It's true that the city—clogged with traffic and choked with fumes—doesn't make a good first impression. But wander around the regal edifices surrounding the Plaza de Armas, among the gnarled olive trees of San Isidro, or along the winding lanes in the coastal community of Barranco and you might find yourself charmed.

In 1535 Francisco Pizarro found the perfect place for the capital of Spain's colonial empire. On a natural port, the so-called Ciudad de los Reyes (City of Kings) allowed Spain to ship home all the gold the conquistador plundered from the Inca. Lima served as the capital of Spain's South American empire for 300 years, and it's safe to say that no other colonial city enjoyed such power and prestige during this period.

When Peru declared its independence from Spain in 1821, the declaration was read in the square that Pizarro had so carefully designed. Many of the colonial-era buildings around the Plaza de Armas are standing today. Walk a few blocks in any direction for churches and elegant houses that reveal just how wealthy this city once was.

The walls that surrounded the city were demolished in 1870, making way for unprecedented growth. A former hacienda became the graceful residential neighborhood of San Isidro. In the early 1920s, with the construction of tree-lined Avenida Arequipa, people pushed farther south to neighborhoods like bustling Miraflores and bohemian Barranco.

Almost a third of the country's population of 28 million lives here, many of them in poverty-stricken pueblos jóvenes in the outskirts of the city. Many residents of these "new towns" come from mountain villages, desperate for any kind of work. The lack of jobs led to a dramatic increase in crime during the 1980s and '90s.

Things have improved. Residents who used to steer clear of the historic center now stroll along its streets. And many travelers who once would have avoided the city altogether now plan to spend a day here and end up staying two or three. Not surprising, since Lima has the country's finest museums, swankiest shops, and most dazzling restaurants. It turns out that there really is a reason to fall in love with Lima.

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