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Monaco's sensational position on a broad, steep peninsula that bulges into the Mediterranean continues to draw the rich and famous; its harbor sparkles with mega-yachts, and its posh properties are angled toward the nearly perpetual sun. As you might expect, all this glitz doesn't come cheap. Eating is expensive, and even the most modest hotels cost more here than in nearby Nice or Menton. For the frugal, Monaco makes a great day trip by train or bus.

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