Oaxaca, Mexico

The city of OAXACA sprawls across a grand expanse of deep-set valley, 1600m above sea level and some 500km southeast of Mexico City. Until recently, its colour, folklore, numerous fiestas, indigenous markets – which are known for being particularly diverse and traditional – and thoroughly colonial centre have combined to make it one of the country's most rewarding destinations. Even an increase in package tourism, an influx of American retirees and the pedestrianization of Macedonio Alcalá, the main thoroughfare from the zócalo to the cathedral, failed to dilute the city's gentle appeal. Sadly, an outbreak of violence in the summer and autumn of 2006, when teacher protests escalated into bloody conflict, may have ruined all this, undermining Oaxaca's reputation as a vibrant, peaceful destination. Beyond the resulting cosmetic damage, including the widespread destruction of beautiful colonial buildings, an atmosphere of extreme tension has enshrouded the city. A series of arrests and a crackdown on protest marches followed Felipe Calderón's inauguration in December 2006, and an uneasy calm now prevails. The long-term impact on the city's tourist industry remains to be seen.