In many ways, Montevideo is Uruguay. The capital totally dominates this tiny country's economic, political and cultural scene - a fact that is less surprising when you consider that more than half of the nation's people live here.

Montevideo was founded by the Spanish, and later fought over by Argentina (after its independence) and Brazil (then under Portuguese control). The population today is overwhelmingly white, mostly of Spanish and Italian descent, and the city thrives as one of South America's foremost financial centres.

The city's Ciudad Vieja (Old Town) is a throwback to the past, where narrow alleyways shaded by turn-of-the-last-century buildings open up into tree-lined avenues. Like Buenos Aires, across the mouth of the River Plate, pavement cafés are plentiful, particularly around the pedestrianised avenue Peatonal Sarandí.

Montevideo is a working port, but the long seafront promenade known as La Rambla is dotted with clean beaches either side of the upmarket neighbourhood of Carrasco, a 20‑minute drive from the docks.

The city itself is a curious mixture of old-fashioned formality and laid-back South American style. To those arriving from Buenos Aires across the water, Montevideo's residents can seem reserved at first, but as night falls the city's workers let their hair down. Into the small hours, bars are busy with high-spirited customers, and most clubs open well after midnight and close with the rising sun.

The city's climate is mild year-round (the hottest months are January and February) but it is prone to changeable weather coming in from the Atlantic.