A charming, vibrant island capital, Funchal stretches along the coast for 4 mls and sprawls back into the hills inland for about 3 mls; it is home to half the island's population, with 125,000 inhabitants. Its original attraction for tourists was as a convalescent resort for 19th-century Europeans, and it was sought out by many famous names and minor royalty for its genteel atmosphere, tranquil gardens and temperate climate. Modern-day Funchal can be divided into 3 main sections: the hectic downtown area, incorporating the Old Town, business district and marina; Lido, the flatter tourist zone 1½ mls SW of the centre, where most of the hotels - as well as many shops, restaurants and cafes - are located; and the residential areas which pack the surrounding hillsides. Downtown offers a mix of busy shopping areas, elegant 18th-century mansions, tiny churches and lush, subtropical gardens - all crammed into a bewildering 1-sq-ml maze of steep, narrow 16th-century streets trying to cope with 21st-century traffic. A pleasant promenade with tourist shops and restaurants runs along the ocean front, where you can sit and watch the many cruise ships docking. The centre and some enclaves around the port retain an old-fashioned feel, particularly in the bohemian area near Sao Tiago Fort, which boasts narrow, cobbled lanes, old buildings, renovated fishermen's cottages, pavement restaurants, and art and craft shops. The style is changing in the Lido area, however, with old colonial mansions being converted to hotels or - more usually - giving way to modern, high-rise buildings.

An upmarket destination, geared mainly to a middle-aged and mature market, although the growth in self-catering apartments and adventure-sports opportunities is drawing a younger age group. Not ideal for families with young children, as both facilities and beaches are lacking, and the steep streets may present a problem for those with walking difficulties. Outstanding destination for botanists and walkers who will appreciate its semitropical flora and the 1,350-ml system of "levadas" (irrigation channels). Popular with mainland Portuguese, British and Germans, in that order.

Many good-quality 4- and 5-star hotels and aparthotels, although the official categories often err on the optimistic side. Several old renovated "quintas" (manorial houses set in their own smallholdings). Limited number of budget properties, mainly in the centre.

No worthwhile beaches, although Praia Formosa with its black pebbles (and oil-storage depot), 4 mls W of town, might serve at a pinch. Tiny rocky beach by the marina has skateboard ramp. The public Lido, Quinta Magnolia and Naval Club for public bathing, although most hotels have a pool.

Town centre features a colourful indoor market, commercial centre and many shopping streets. Many small supermarkets and souvenir shops in the hotel zone. Best buys include wickerwork, embroideries, tapestries, traditional painted tiles ("azulejos"), flowers (orchids, bird of paradise and anthurium plants travel well) and, of course, Madeira wine and cake.

Daytime: sightseeing around the Old Town on foot or via open-topped double-decker bus, taking in the marina, museums, gardens, Gothic cathedral, various churches, including an 18th-century British church and cemetery, and 17th-century Fort of Sao Tiago; botanical gardens; orchid houses; wine lodges; cable car to Monte; walks along the ancient levadas (irrigation channels); golf; water sports, including diving, surfing, wind surfing and sailing; hang gliding, paragliding, mountaineering, canyoning, trekking and rock climbing; horse riding. Nightlife: folk dancing in almost all the hotels; nightclubs in larger hotels; a few local-style discos; casino with regular floor shows/cabarets; many bars, with those in the Old Town offering glimpses of local life.

Numerous restaurants in all parts of Funchal, serving local cuisine; Italian, Indian and international options; very little fast food. Ex-Beatles-owned yacht converted to restaurant. Local specialities are espada (scabbard fish), espetadas (meat on a skewer) and Madeira cake, known as bolo de mel (rich honey cake).

An extensive network of local buses within a 5-ml radius of Funchal. Buying tickets in advance is cheaper than paying on board; 7-day passes are good value. Privately operated country services are also frequent, inexpensive and punctual. Taxis are reasonably priced and plentiful. Car hire is available but Funchal's tiny, steep, often one-way streets are hard to navigate and Madeiran drivers can be impatient.

Half day: Camacha, the heart of Madeira's wicker industry; "crater and toboggan tour" (visit to spectacular Nun's Valley and a steep 2-ml trip downhill in a wicker toboggan); garden tours. Half/full day: local and island coach tours; jeep tours; boat trips, dolphin-spotting and deep-sea fishing. Full day: W coast, including Cabo Girao, the world's second highest sea cliff; Portelo Pass and the E coast; island of Porto Santo, with its vast sandy beach (via 25-min flight, 1½-hr catamaran cruise or 2¾-hr ferry ride).

On the SE coast of the island of Madeira, located in the N Atlantic Ocean. 700 mls from the Portuguese mainland. 14 mls SW of the airport by fast dual carriageway.

In a natural amphitheatre overlooking a wide bay, with a scenic backdrop of lush, green, volcanic mountains.

Post Code: 9000
Website: www.madeiratourism.org

Airport : Funchal
Airport Code: FNC
Flight time from ther U.K.: 3 hrs 30 mins