World's Best 2001: Top Cities: Sydney

The city itself is the ultimate must-see. For a glittering view of it all, take a ferry from Circular Quay to Watson's Bay, walk along the cliffs to the Gap ravine, and dine at Doyles fish restaurant (book ahead to ensure a table at twilight).

A study in contrasts. The Opera House stages more than 1,500 performances a year, attracting nearly 1.25 million people. On the other hand, February's Mardi Gras pulled in 450,000 just to see the riotous closing parade.

Sydney is a bona fide sophisticated food capital. Current faves: Otto, on the harbor and buzzing with Beautiful People; Longrain, for Thai food and high style; and Banc, classy and supremely well calibrated.

That likable accent, the laid-back charm, and a natural approach to service—it's no wonder our readers rate Sydneysiders tops in the world.

If you tire of designer outposts and the Queen Victoria Building arcade, stroll to Oxford Street on Saturday morning to take in the Paddington Markets, followed by antiquing in Woollahra.

One American dollar equals almost two Australian, so good deals are everywhere. Stock up on Aussie designers like Colette Dinnigan here, before the export tax is tacked on.