Arequipa and Puno are overloaded with hotels. This is good for you, the traveler, considering that you reap the benefit of great service for a low price. Puno lives and breathes for tourists. Although a growing number of resorts and chain hotels are set along the lakeside, most of the properties within the city are small boutique hotels with local owners pining to get in on the tourist boom in this otherwise agricultural town. As a commercial business center, Arequipa has more high-end hotels that cater to business travelers, and given its fame for being the romance city, it also has lots of small inns.