Albufeira / Portugal

With its prime vantage point atop multi-hued cliffs in Portugal's southern Algarve region, it's easy to imagine Albufeira's eighth- century Arab occupants calling the city "Castle of the Sea." Brightly painted fishing boats, stunningly white houses with Moorish flair and remnants of its old fortress provide echoes of earlier days, while lively nightlife accentuates its modern resort charms. Spend time sunbathing on the more than 20 diverse beaches that hug the coast or venture inland, where almond trees blossom and local handicrafts are abundant.