A small capital in a tiny country, Montevideo has often been overlooked by travelers in favor of neighboring giant Buenos Aires.  But Uruguay’s quaint capital has much to offer on its own, besides its proximity to Argentina.  Beautiful buildings, white sandy beaches, and a quiet sophistication, not to mention low prices and favorable exchange rates, are all reason enough to make a stop in Montevideo during your Latin American travels.

Montevideo lies on the Rio de La Plata, and its tourist center, Ciudad Vieja (old city) is built on a small peninsula right by the harbor.  It is home to many 19th century buildings as well as many great cafes, both classic and trendy.  Take a stroll through Plaza Independencia, with many historic public buildings, or check out some museums.  Montevideo has many museums with diverse themes, from the traditional National History to the fascinating Museo del Gaucho, dedicated to local cowboy culture.

To enjoy Montevideo out of doors, take a stroll down La Rambla, the waterfront promenade, which will take you past picturesque residential areas and numerous public parks.  On your way you can do some people-watching, taking in local fishermen, bench-dwellers sipping mate, and bike-riders out for some exercise.  Head east to hit the beaches, where you can bask on the sand with the locals, and stick around for a beautiful evening sunset over the water.

If you’re feeling energetic there are plenty of activities to take up your time in the city.  Bikes can be rented to cruise La Rambla, and of course there is swimming and volleyball on the beaches.  There is also windsurfing on Playa Buceo, with lessons available at the yacht club.  And of course you can always get your exercise jumping up and down and chanting fight songs at a soccer game at Estadio Centenario, the city’s first main stadium.

Like their Argentine neighbors, Uruguayan’s love tango, and Montevideo has many places where you can spend your night on the dance floor.  Unlike their counterparts, however, Uruguay mixes it up by adding some candombe, an African-derived, drum-based style of music, to the mix.  Sundays you can catch drumming rehearsals on the streets of the Palermo neighborhood, and plenty of bars feature live music any night of the week.  Popular larger theaters such as Teatro Solis also often feature great concerts.

Though no Rio, Montevideo does have some great festivals, including a bustling Carnaval that showcases Uruguay’s thriving arts community.  Parades and parties open the celebrations, which continue unabated for the next 40 days.  At the end of Carnaval, Semana Santa in Uruguay features La Semana Criolla, with festivities including traditional Uruguayan asados, folk music, and gaucho competitions like stunt-riding.

Though not a major backpacker destination, Montevideo has plenty of treats for the budget traveler, including lots of cheap hostels and inexpensive accommodation.  Many options are located around Plaza Cagancha, though there are some to be found in Ciudad Vieja as well.  Many museums are cheap or free, and great restaurants and entertainment can be found at any price range.  Plus of course, there’s never any charge for soaking up the sun on the beach.   It might not be at the top of your radar, but don’t overlook Montevideo and Uruguay when planning your vacation in South America – with plenty of culture and low prices, you’re almost guaranteed a great trip.