NOT long ago, Lisbon was considered a city of laid back charm, where tradition and restraint walked hand in hand - not any longer, writes Sylvia Kingsley.

After successfully hosting Expo in 1998, lovely Lisbon has emerged as a throbbing city with elegance and an upbeat mood.

The Portuguese capital is a city of squares with splashing fountains and medieval cobbled streets, built on seven hills with fabulous views down to the sea, a port of palm trees, gardens and fine architecture, one of the last European capitals to blend ancient buildings with modern ones. Its fashionable shops can compete with the best anywhere.

Sloping down to the River Tagus, where pink and ochre houses line the waterfront, the daily fish and vegetable market burst into life at dawn, the pulse of Lisbon life. If you're up early enough, when the sun rises behind St George's Castle on the highest hill, the glow thrown across hundreds of red-tiled roofs leaves an unforgettable image.

The courteous Lisboetas, a mix of Portugal's past from Brazil, Mozambique and Africa, have brought their music, smiles and flamboyant colours. Everywhere, in cafes which draw you in with aromatic coffee and sinful custard tarts, you'll hear soft Portuguese melodies along with African drums. The music and the singing of Gypsies is heard too in the busy streets and public squares.

It's a city for good walkers, but hard on the feet and legs if you're not used to cobbles and hills. Let the rattling yellow trams take the strain. Made in Britain, they go everywhere and cover many tourist routes to ease the burden.

Belem is the city's museum district. Here you can visit the Toree de Belem, the Monument to Portugal's historic discoveries, and the famous Jeronimos Monastery and maritime museums. But don't go on Mondays, when many of the attractions are closed.

The classic sights of Lisbon include St George's Castle, a fine place from which to watch hilltop sunrises and sunsets; the Oceanarium at the Parque das Nacoes, Europe's largest, with four Olympic size swimming pools; the puppet museum; the tile museum, and the music museum.

The essence of Lisbon lies in its old areas, such as the Chiado, with its chic shopping streets and art nouveau cafes, especially A Brasileira, where the trendy and literary throng, along with elderly dowagers. The downtown Baixa area, which stretches to the river, sparkles with lights after dark and is called the "heart of the city". This is where the grand Rossio Square, with its national theatre, merges with two others, the Figueira and Restauradores, with lively cafes spilling onto the pavements.

The most fascinating part is the old Moorish district of Alfama, a huddle of narrow, twisting alleys, crisscrossed with washing lines strung between tiny houses on different levels. Wrought-iron balconies weighted with geranium pots are everywhere, and caged birds sing chirpily when the sun shines.

Up on the hills, reached by public escalator or elevator, the Barrio Alto comes to life at night when restaurants and cafes put on cabarets and a wild mix of music, including the melancholy, soulful fado, which can have you weeping, or African and Brazilian drum beats, which gets louder by the hour. Lit by wrought-iron street lamps, it's all very atmospheric after dark, with its wide choice of tavernas, cellar bars and cultural mix.

Traditional beer tascas inns are good value for homely, Portuguese cooking, with the accent on freshly caught fish, but the range of cuisine on offer goes right through to elegant formal restaurant dining. Food is always accompanied by fine regional wines and the famous port and vinho verde.

Away from Lisbon, luxurious Estoril, once the home of exiled kings, is about 50 minutes from the city centre; Cascais, once a busy fishing village has a younger and lively feel, and Sintra is full of grand palaces with huge gardens and the ruined Castle of the Moors and the Palacio da Pena are worth a visit.

Fact File:

Sylvia flew with TAP, Portugal's national airline from Heathrow to Lisbon (0845 6010932).

Portuguese National Tourist Office, 22/25a Sackville Street, London, W1 (020 7494 1441).

Reading: Cadogan Guide to Portugal; Rough Guide to Portugal; Berlitz, Lisbon.

Reproduced from Limited Edition magazine, exclusive guides to living in Hertfordshire, Middlesex and the London Borough of Barnet (01923 216295).

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