The Welsh capital has changed dramatically over the last decade, and there is still major renewal going on, as is evidenced by the amount of building and reconstruction that is taking place. Most noticeable of all, particularly for the visitor emerging from the railway station, is the looming modernity of the Millennium Stadium, which dominates the skyline on the western edge of the city centre. Both in the city centre itself and at the equally impressive Cardiff Bay development, home to the Wales Millennium Centre, the air of optimistic rejuvenation is still strong.

Home to the Welsh National Assembly, Cardiff has virtually reinvented itself since the low points of the 1970s and 1980s. Back then it was difficult to believe that less than a century earlier, the city had been one of the great powerhouses of the British Empire, exporting vast amounts of coal from the nearby Valleys and steel from the huge plants in South Wales. When these industries all but died out during the last quarter of the 20th century, prospects appeared bleak. Yet, thanks to government and European Union encouragement, new employers have moved in to help fill the economic void, and the result is a city that has more to offer and attracts more visitors than ever before.

Even now, however, visitors should not go to Cardiff expecting the cosmopolitan sophistication of larger, longer established capitals. Located in the south of Wales and looking onto the Severn Estuary, the city was only officially recognised as a capital in 1955, and it retains a friendly ‘small town' quality that spirited self-promotion and inward investment have not entirely shaken off, perhaps to its benefit. Even so, it has a vibrant atmosphere and a lively music scene and nightlife, due in part to the presence of more than 30,000 students based at the city's universities.

The central area, with its seven delightful Victorian shopping arcades and traffic-free streets, extends from the railway station to the impressive castle. This is Cardiff's traditional commercial and social heart but, increasingly, Cardiff Bay, 2km (1 mile) or so to the south, has been gaining ground in the entertainment and leisure stakes, as well as becoming an important administrative centre.

Indeed, Cardiff Bay has altered beyond recognition, from its past as the world's largest coal exporting port to a modern sport and leisure complex. It is also Europe's largest waterfront development, and it has a wealth of leisure activities available both on and off the water. The Bay is home to a number of attractions such as Techniquest Science Discovery Centre, Craft in the Bay, The Welsh Assembly at the Pierhead, Butetown History and Arts Centre, Goleulong 2000 Lightship, the Norwegian Church Arts Centre and the Wales Millennium Centre, a stunning international arts centre. The Atlantic Wharf Leisure Village provides further options for family entertainment.

Wales as a whole has grown in self-esteem since the Welsh National Assembly was formed in 1999, and Cardiff has been a focal point in the development of the nation's new, empowered identity. In 2005 it celebrated its centenary as a city and 50 years as Welsh capital, giving it yet another boost of confidence. It can truly be said that the first decade of the 21st century has been highly successful for Cardiff, and there are further developments underway, including a new 30,000-seat stadium for Cardiff City Football Club that is expected to be complete by late 2008 and a major £700 million International Sports Village in Cardiff Bay that will feature a 50m (165ft) swimming pool and a 250m (829ft) Olympic standard canoe slalom centre, both due to open in 2008, as well as a real snow ski dome and a sports arena that will host ice hockey, gymnastics, judo and other sports. The complex will also feature casinos, restaurants, hotels and a 120m (400ft) viewing tower that will offer panoramas across South Wales and the Bristol Channel.