Table of Contents: February 2009

Mexico City Grupo Habita, the team behind some of Mexico's chicest small hotels, is working on a hostel in Mexico City's Condesa neighborhood. Scheduled to open next spring at the corner of Calle Aguascalientes and Avenue Insurgentes Sur, it will have mid-century-style furnishings—a nod to architect Luis Benlliure, who designed the building in 1956—as well as an art-house cinema and a 24-hour Sanborns coffee shop. hotelhabitamty.com, private rooms from $99. Budapest This fall, trendy European hotel chain 25hours is opening its first hostel-hotel, tentatively called Paprika Modern. Local design firm PapaMamaKollektiv is at work on the 84-room project, which is located on the Pest side of the Danube. Although the city has plenty of bare-bones hostels, this one ups the ante with art and furniture that make playful use of Hungarian household staples, such as lace and paprika. 25hours-hotels.com, private rooms from $125.

PARIS Mama Shelter The setup Partners Cyril Aouizerate and Serge Trigano (his family cofounded Club Med) purchased a graffiti-covered parking garage in Paris's 20th arrondissement and unleashed Philippe Starck in the space. With orders to create a combo hotel and hostel, Starck went whimsical, covering curtains with photographs of Parisians and scrawling random thoughts on the ceilings (sample: "How lucky we are to have windows!"). Starck also added homey details, such as a cabinet stocked with bread and Nutella for late-night sandwich making. Sleeping arrangements All 172 of the rooms are private, from the singles to the Mama Suite, whose terrace overlooks Père-Lachaise Cemetery. Even the smallest quarters have kitchenettes, iMacs, and shower-only bathrooms. Starck custom designed the graffiti-patterned carpeting and hung an illuminated Halloween mask next to each bed as a night-light. The 'hood A working-class enclave on the Right Bank, the 20th is one of Paris's most up-and-coming areas. The popular indie-rock bar La Flèche d'Or is across the street from Mama Shelter, and for a taste of old Paris, the Edith Piaf Museum is just on the other side of the cemetery. Unexpected extras Star chef Alain Senderens presides over Mama Shelter's restaurant, where diners can opt to eat their moules frites at a communal table with TVs embedded in its surface. You may be tempted to make use of the photo booth in the lobby, but be warned that its images are beamed onto a row of plasma TVs by the bar. Information: 011-33/1-43-48-48-48, mamashelter.com, private singles from $100. Photos 1 of 3 —Ellise Pierce ASCHAU IM CHIEMGAU, GERMANY Berge The setup When German furniture designer Nils Holger Moormann bought some land in southern Bavaria with an abandoned bakery on it, his plan was to use the grounds for storage. But that winter, inspiration struck: His bakery would make the ultimate gemütlich hostel—one furnished with his own witty designs. Three years (and an astonishing amount of custom carpentry) later, Moormann opened Berge. Sleeping arrangements All 13 of the rooms are private and have double or queen-size beds, except for the Bergebude (mountain dorm), which has three bunks built into the walls. Although he's constantly adding features and moving furniture around, Moormann resolutely keeps the hostel TV-free. The 'hood Aschau is a medieval hamlet located 90 minutes by train from Munich and 45 minutes by car from Salzburg, Austria. There's first-rate skiing and snowboarding at the Chiemgau resort, within walking distance of Berge. Come spring, guests can hike through Alpine forests and cycle around Chiem Lake. In the village, the restaurant options range from neighborhood pubs to Residenz Heinz Winkler, a Michelin-starred restaurant with a 25,000-bottle wine cellar. Unexpected extras A bookworm, Moormann has planted 1,000-plus volumes throughout Berge. In the library, you can try out his top-selling Bookinist chair, with built-in shelves and a big wheel beneath the seat (right). "I made it when my back was giving me trouble, so I could just roll myself from place to place," he says. Information: 011-49/8052-904-560, moormannberge.de, private rooms from $100. Photos 1 of 3 —Gisela Williams LOS ANGELES Stay The setup Occupying three floors of the 81-year-old Cecil Hotel, Stay is a mod take on the backpacker special. "Having traveled through Europe in my twenties, I knew exactly what I didn't want," says designer Catherine Coan, whose credits include the high-service Belamar Hotel in Manhattan Beach, Calif. What she and partner Amy Price did want: an eye-popping palette, an in-house art gallery, a computer nook with 20-inch Macs, and a tuned-in clientele of all ages. Sleeping arrangements Although they tend to book weeks in advance, try to nab one of the 13 private rooms that come with a queen-size pillow-top bed, Eames-style reading lamps, and its own bathroom. The 12 shared quarters have from one to four bunk beds. Regardless of where you land, you will find playful details, such as polka-dotted sheets and bright-orange hand-shaped chairs. The 'hood Once-sketchy Main Street is currently on the upswing (Johnny Depp and Katherine Heigl both have lofts nearby), but the area can be desolate at night. Within walking distance: Little Tokyo, the Museum of Contemporary Art, and the Frank Gehry–designed Walt Disney Concert Hall. Unexpected extras Stay's concierge lends out Xbox consoles and games to play on the 42-inch TV in the common area. Tuck, a comfort-food restaurant, opens in April and will deliver meat loaf and milkshakes to your room. Next up: Nip, a lobby bar scheduled to debut this summer. Information: 866/935-7829, stay-hotels.net, private rooms from $65. Photos 1 of 2 —Monica Corcoran BANGKOK Lub d The setup There's no sign whatsoever that Lub d (Thai for "sleep well") was formerly a slapdash office space. Its bright-yellow lobby is tricked out with Robert Indiana–inspired LOVE tables and a banner that reads HAPPY TO SEE YOU. Thanks to Bangkok-based P49 Deesign—known for creating such swanky resorts as the oceanfront Trisara in Phuket—even the shared bathrooms are stylish. Deft touches include poured-concrete island-style sinks and black-tiled showers with soap and shampoo dispensers labeled head to toe. Sleeping arrangements Of the hostel's four floors, two are communal, with both coed and women-only quarters (with three to five bunk beds per room and a locker for each person). Or you can step it up with a $40 Railway Twin, a private room for two with a bunk bed. Better yet, shell out $10 more for one of the eight private doubles, which have queen-size beds, flat-screen TVs, and their own bathrooms. The 'hood Lub d is on busy Decho Road, in the Silom district. The surrounding grid of retail streets buzzes with activity into the early morning hours, which is great for night owls. One of Bangkok's largest evening food and shopping bazaars, Patpong Night Market, is just around the corner. To help guests get acquainted with the area, the hostel's manager leads a walking tour every Thursday afternoon. Unexpected extras Lub d has its own movie theater, with beanbag chairs in lieu of seats for lie-down viewing. Get your free popcorn at the self-service Yellow Donut Café and Bar in the lobby, which also offers breakfast. Information: 011-66/2-634-7999, lubd.com, private rooms from $40. Photos 1 of 1 —Gisela Williams SCHIPHOL AIRPORT, AMSTERDAM citizenM The setup From the outside, the 230-room citizenM looks like any other boxy airport hotel. But swing through the red-glass front doors and there's a surprise around every bend. Even registering is an adventure: Guests check themselves in at a row of monitors set against a wall-size bookshelf. A project of the Dutch design team Concrete, citizenM's interior was largely preassembled at a factory. That cost-cutting approach left funds for frills, such as the enormous Frank Gehry puffy-cloud chandelier that illuminates the lobby. Sleeping arrangements All of the quarters are private and come with either a custom-made XL bed (even bigger than a California king) or a pair of twins. That Jetsons-like cylinder in the middle of the room is actually the shower, with overhead LED lighting that changes colors (opposite). But the toy techies really love? Touch-screen mood pads that control the temperature, blinds, and even the alarm clock. Attention, airplane spotters: West-facing rooms have views of the runways. The 'hood CitizenM is located directly across from the main terminal at Schiphol Airport. Express trains operate several times an hour between the airport and central Amsterdam—about a 20-minute ride—around the clock. Unexpected extras CanteenM, a 24-hour café in the lobby, serves smoothies, sandwiches, sushi bento boxes, and house martinis with names like Vespa and Mobile. In April, a second citizenM opens in Amsterdam's business district. Information: citizenmamsterdamairport.com (Internet-only reservations), private rooms from $90. Photos 1 of 3 —Gisela Williams LISBON Living Lounge Hostel The setup A chandelier constructed from crystal shot glasses, a century-old barber's chair reinvented as a chaise, a dining table that gets hoisted to the ceiling to make room for dancing. These are but a few of the surprising furnishings at Living Lounge, in the Baixa section of Lisbon, a new 23-room hostel owned and operated by four design-minded friends: a painter, an architect, and two photographers. Sleeping arrangements Seventeen artists were each given a space or two to transform, ensuring that none of the rooms are even remotely alike. Take the dorm decorated by graffiti artist Dirty Cop: The walls are painted with black trees evocative of Edgar Allan Poe. Regardless of where you slumber—one of the 4 singles, 12 doubles, or 7 dorms—you'll have to shower in the shared bathrooms on each floor. The 'hood Living Lounge is in a quiet corner of the historic business and shopping district, where the cobblestoned streets are named after the craftsmen who first set up shop here in the 18th century. The local look is neoclassical, from the National Theater of Dona Maria II to the dozens of pastry shops that sell trouxas de ovos, thick crepes drizzled with syrup. Unexpected extras "Our friends want to come over for dinner every night," says part owner Inês Caetano. She's talking about the 8:30 p.m. meal served in the dining room—a four-course feast for $10. Chef Antonio Cardoso is also the resident tour guide; his morning walks through the city end with a wine tasting back at the hostel. Information: 011-351/2-1346-1078, lisbonloungehostel.com, private rooms from $40. Photos 1 of 3 —Gisela Williams

ENGLAND Bamburgh Castle, Bamburgh, Northumberland. Fortifications have stood on this rocky outcrop near the North Sea since the 5th century. In the 12th century, King Henry II acquired the structure, and later it was snapped up by William Armstrong, a wealthy Victorian industrialist. Still owned by Armstrong's descendents, the castle has served as the location for several movies, including Roman Polanski's 1971 version of Macbeth. After you tour the castle, which is open to the public from March to October, hop over to nearby Holy Island for a visit to Lindisfarne Castle. This stunner also overlooks the sea and is accessible only at low tide (the causeway connecting it to the mainland floods at high tide). 011-44/16-6821-4515, bamburghcastle.com, admission $10.75 (£7). Leeds Castle, Maidstone, Kent. More than 900 years old, this moated castle regularly hosted that much-married Tudor, Henry VIII. Its current success as one of England's most popular tourist attractions is due to the work of the blue-blooded Olive Wilson Filmer, who outbid William Randolph Hearst to buy the castle for $873,000 in 1926 (that's over $10 million in today's dollars). Filmer used the rest of her fortune to restore and beautify the structure and its surroundings. On the grounds are several mazes, a display on falconry, and a dog-collar museum. 011-44/16-2276-5400, leeds-castle.com, admission (valid for a year) $25.25 (£15). SCOTLAND Eilean Donan, Dornie, Scottish Highlands. Planted on an island in the middle of a loch, Scotland's most famous castle looks as if it's been there forever. It does date back to 1220, but the original structure was destroyed in 1719 and lay in ruins for two centuries. In 1919, Lieutenant Colonel John Macrae-Gilstrap bought it and began restoration. He was helped by the stonemason Farquar Macrae, who claimed to have seen in a dream how the original castle looked in earlier times. The castle was rebuilt according to Macrae's specifications; later, plans found at Edinburgh Castle proved his vision correct. The "new" castle was finished in 1932. 011-44/15-9955-5202, eileandonancastle.com, admission $7.75 (£5). WALES Beaumaris, Angelsey, Wales. The English king Edward I began raising this castle as part of his campaign to conquer Wales. Work began in 1295, but the castle had not been completed when the money ran out (as so often happened with castles), and it remains unfinished to this day. Castles are thick on the ground in North Wales: Within easy driving distance from Beaumaris, you'll find the major structures of Conwy, Harlech, and Caernarfon, as well as two small, romantic ruins, Dolbadarn and Dolwyddelan. But Beaumaris remains the most beautiful. 011/44-12-4881-0361, beaumaris.com, admission $5.75 (£3.70). GERMANY Neuschwanstein Castle, Hohenschwangau, Bavaria. Ludwig II of Bavaria—a.k.a. Mad King Ludwig—commissioned a set designer to create Neuschwanstein. Engineers broke ground in 1869, but King Ludwig didn't get much chance to enjoy his over-the-top palace. In 1886, as the castle was nearing completion, he died under suspicious circumstances; his body was found floating in a lake, with the body of his physician nearby. Despite this unhappy ending, Neuschwanstein remains the quintessential fairy-tale castle: It was a major inspiration for Sleeping Beauty's Castle at Disneyland. 011-49/83-6293-9880, neuschwanstein.de, admission $13 (€9). DENMARK Kronborg Castle, Helsingør. Dating back to the 1420s, Kronborg is one of the best-preserved Renaissance castles, despite the various alterations it's undergone since then. Positioned next to a strait separating the Danish island of Sjælland from Sweden, it had great strategic power over the sea traffic—not enough, however, to prevent the persistent Swedes from conquering it in 1658. Kronborg gained more lasting fame as the castle in Shakespeare's Hamlet. 011-45/3392-6300, kronborgcastle.com, admission $16.50 (85 DKK). FRANCE Château de Castelnaud, Castelnaud-la-Chapelle, Dordogne. This impressive fortress, located on the limestone rocks above the Dordogne River, overlooks a former enemy, the Château de Beynac. During the Hundred Years' War, the English held Castelnaud and the French controlled Beynac, with both nations hoping to control this sensitive border region. These days Castelnaud is known for its Museum of Medieval Warfare, which includes reconstructions of giant crossbows and trebuchets, the huge slings used to hurl rocks at castle walls. 011-33/55-331-3000, www.castelnaud.com, admission $11 (€7.60). Haut-Koenigsbourg Castle, Orschwiller, Alsace. The hilltop position of this 12th-century castle, more than 2,000 feet above the Alsace plain, kept it safe for centuries. Destruction came in 1462 and again in 1633 after a siege by Swedish soldiers during the Hundred Years' War, after which it was overgrown by the forest and abandoned. Now it's a popular stop for tourists visiting the Alsatian wine region. 011-33/38-882-5060, haut-koenigsbourg.fr, admission $10.50 (€7.50). ROMANIA Bran Castle, Bran, Brasov. Both the keepers of Bran Castle and the Romanian Tourist Board are keen to emphasize links between Bran Castle and Vlad the Impaler, the inspiration for Bram Stoker's Count Dracula. The connections are tenuous, but there's no denying the spooky charm of this massive structure's many turrets and towers. Some of the furniture on display was owned by Marie of Romania, a granddaughter of Queen Victoria who turned down a proposal from the future King George V of England and married the king of Romania instead. 011-40/26-823-8333, www.brancastlemuseum.ro, admission $4.25 (12 leu). SWITZERLAND Château de Chillon, Lake Geneva, Montreaux. As with most real estate, it's often location, location, location that makes all the difference with castles. On an island near the edge of Lake Geneva, Château de Chillon is no exception. Excavations here have turned up evidence of a Bronze Age settlement, but the castle as it now stands was created between the 12th and 18th centuries. Its popularity got a huge boost in 1816. That year, following a visit, Lord Byron published his long poem "The Prisoner of Chillon"; the work refers to the "seven pillars of Gothic mold" that stand in "Chillon's dungeons deep and old." 011-41/21-966-8910, www.chillon.ch, admission: $11 (12 Swiss francs).

CLOSE TO HOME If you really want to save in 2009—and help to revive a sagging domestic economy—travel within the United States. These three U.S. destinations are set to shine in the New Year. AUSTIN Why in 2009: For years, the capital of down-home cool (and Texas) has been working to become the nation's capital of pop culture—at least among cities of a similar size. This city of 1.6 million residents has succeeded in its mission, especially as a venue for indie rock, bluegrass, and country music. Its largest music festival is South by Southwest, a multi-day, 1,700-band extravaganza that draws serious music fans nationwide (sxsw.com, Mar. 18–22, 2009). Austin's economy, meanwhile, is well diversified between public and private sectors, which means that Austin is poised to weather the economic downturn reasonably well, says University of Texas at Austin economy professor Daniel S. Hamermesh. So it should be full speed ahead on spending for free and affordable cultural events. A bonus: In the past year, discounter JetBlue has added flights to Austin. Rival airlines are feeling the pressure to keep airfares low. Main events: Thousands of music fans converge on the city each year for two festivals: South by Southwest (mentioned above) and the Austin City Limits Music Festival (aclfestival.com, Oct. 2–4). Art lovers come for the Texas Biennial (texasbiennial.com, Mar. 6–Apr. 11) and the open-air Art City Austin (artallianceaustin.org, Apr. 25-26). Even if you're not in town for a big event, keep in mind that Austin has pretty weather for eight months of the year (summer's the sweltering exception). With its extensive Greenbelt park as well as 10 miles of waterfront paths, it's easy to get outside and enjoy a little nature. Memorable moment: Chill out on the terrace bar of the Inter-Continental Stephen F. Austin hotel, overlooking downtown. Order a Stephen F. Top Shelf, the house margarita, tip your hat to the mounted longhorn on the wall, and watch the Texas Capitol turn pink as the last rays of the sun hit it. 701 Congress Ave., 888/424-6835, austin.intercontinental.com, margaritas from $10. Price check: Round-trip tickets between Austin and Chicago recently started at $210, a 9 percent drop from a year earlier, says Farecast. Affordable lodging isn't hard to come by. Hotel rates should average a modest $104 a night, says a forecast by PKF Hospitality Research. We like the stylish Austin Motel, starting at $70. 1220 S. Congress Ave., 512/441-1157, austinmotel.com. WASHINGTON, D.C. Why in 2009: It's not just the presidential inauguration, the Capitol's freshly minted visitor center, or the recently re-opened National Museum of American History—all reasons enough to drop by D.C. in 2009. It's also the built-in, year-round cost containment: Free admission to national monuments, the Smithsonian's many world-class museums, and the Smithsonian National Zoological Park make the capital a perennial choice for an affordable family vacation. (For other ideas, check out Destination DC's list of "100 Free (And Almost Free) Things to Do in D.C.") Main events: The popularity of the upcoming presidential inauguration is jacking up prices temporarily around January 20. But there's plenty else to see in D.C. during the rest of the year. On April 12, for example, a re-creation of contralto Marian Anderson's famous 1939 open-air concert at the Lincoln Memorial will commemorate the bicentennial of Abraham Lincoln's birth. This year's rendition showcases Denyce Graves, the Chicago Children's Choir, Sweet Honey in the Rock, and the Washington National Opera (lincolnindc.com, free and non-ticketed). Memorable moment: For lunch, head to the tapas restaurant Jaleo for a shared plate of house-made grilled pork sausage with sautéed white beans (jaleo.com, $8.50). After a walk along the National Mall, end your day at the rooftop bar and terrace of the W Hotel, debuting in August (whotels.com), and watch the sun set over the Thomas Jefferson Memorial (nps.gov/thje, free). Price check: If you plan wisely, free admissions should yield huge savings for your family. To save even more, fly into Baltimore/Washington International (BWI) airport, roughly an hour's ride by Amtrak rail or by public transportation to D.C.'s Union Station. Southwest's strong presence at BWI makes fares more competitive than those at the more central Ronald Reagan Washington National Airport. HAWAII Why in 2009: The Aloha State received positive, high-profile press coverage when president-elect Barack Obama recently visited, but it's still hurting from the downtown of the national economy. This always-popular destination saw about a 10 percent drop in visitors in 2008, a statistic that represents a tourism drought for Hawaii. Tour operators are responding by aggressively discounting un-booked rooms and car rentals and bundling them into packages. As we enter 2009, there are remarkable package deals, air inclusive, from both the west and east coasts. To save a bundle, consider a timeshare rental instead of a standard hotel stay. Rental rates are dropping to as low as $100 a night for beautiful properties, says Timeshare Users Group (tug2.net), a site tracking timeshare rental inventory in Hawaii and elsewhere. Many of the timeshare properties are owned by people who are now anxious about making their mortgage payments, and you can rent their spacious units at a significant discount, without listening to any sales spiels. Main events: It's Hawaii—beaches, volcanoes, and luaus will continue to be the big draws. But this year marks Hawaii's 50th anniversary of statehood, and a party is planned at the Capitol for March 18 (free, hawaii.gov/statehood). Obama watchers can take a do-it-yourself tour of the president-elects's childhood haunts by using a map from Obamasneighborhood.com; or hop on a two-and-a-half-hour bus tour of his grade school, the Baskin-Robbins where he once worked, and several picnic spots that he loved (Guides of Oahu, obamatourhawaii.com, $40 per person). Memorable moment: Have a mai tai made the right way at the Royal Hawaiian, a landmark pink hotel in Waikiki Beach. It's a beautiful spot for watching the surfers wipe out and the sun go down—and taking in live Hawaiian music and hula dancing. 2259 Kalakaua Ave., Honolulu, 808/923-7311, mai tai from $14. Price check: Pleasant Holidays has numerous Hawaii promotions, including three-night air/hotel packages starting at $427 per person from Los Angeles and $472 per person from San Francisco (pleasantholidays.net). Apple Vacations also has deals, such as a recent offer for six-night stays at the Sheraton Princess Kaiulani, including a $150 per-room voucher for meals at Sheraton restaurants. The package rates begin at $999 (applevacations.com, from Baltimore, Newark, and other airports). TUMBLING CURRENCIES The financial crisis has weakened currencies around the globe against the U.S. dollar. Although predicting currency trends is a tricky business, Hungary, Iceland, and Mexico should remain bargains for U.S. visitors in the coming year. BUDAPEST, HUNGARY Why in 2009: Budapest has become the sort of expat haven that Prague was in the '90s, back before the Czech capital's cafés started charging $4 for an espresso and tour groups suddenly outnumbered locals. Recently, the U.S dollar has surged in hard-hit Hungary, gaining 30 percent against the declining local currency, the forint. In addition to savoring the city's glorious art nouveau architecture, anchored by the imposing Museum of Applied Arts in the center of town, you can shop in the well-preserved Great Market Hall, explore the miles of caves under Castle District (former hideouts for soldiers during wartime), and catch a show at the Hungarian State Opera House, where standing-room tickets go for only $2. Main events: Budapest's monthly design market WAMP is well on the way to renown as an international fashion destination. The market, which spotlights contemporary handcrafts, jewelry, prints, and other items from Hungarian craftsmen, is held in the summer and fall in Erzsébet Square and in winter at Gödör Klub (wamp.hu/en, free). Hungary's two largest cultural and foodie events are the Budapest Spring Festival, a collection of 200 free and ticketed concert music performances (festivalcity.hu), and fall's 18th Budapest International Wine Festival, which encompasses tastings and workshops at Buda Castle (winefestival.hu, free). Memorable moment: Take a dip in the therapeutic hot springs of Budapest, which have drawn travelers for nearly 2,000 years. The Gellért Baths and Spa Budapest (H-1118 Budapest, Kelenhegyi út 4, 011-36/1-466-6166, gellertbath.com), an opulent 19th-century spa hotel with mosaic tiles and palm fronds, costs charges roughly $18 for a day in its pool. Browse spasbudapest.com for more options. Price check: As business travel tanks, vacationers may score the best values by upgrading to hotels that traditionally serve corporate travelers. Budget Travel's pick for the city's best value hotel, NH Budapest (nh-hotels.com), recently offered rooms for $93 a night, about 41 percent off its average rate, according to TripAdvisor. City tours on foot or by bus are between $10 and $20 because guides cost about a third less in Budapest than in other Western European capitals. REYKJAVIK, ICELAND Why in 2009: The dramatic collapse of Iceland's currency, the kronur, has hung a 48-percent-off sign on virtually everything for American tourists. A hot dog (an Icelandic specialty) in downtown Reykjavik, for example, runs about 210 kronur—that's $3.50 in U.S. dollars at last year's exchange rates, but about $2 today. Meanwhile, in a bid to lure tourists, Icelandair has recently rolled out steep airfare discounts. Published fares to Iceland for early 2009 are down 22 percent from a year earlier, says Expedia. Main events: Astoundingly, beer was illegal in Iceland until 1989. On March 1, Beer Day, Reykjavikers toast its legalization with parties at pubs, clubs, and restaurants (goiceland.org). On June 21, the summer solstice, locals cheer the midnight sun on the longest day of the year. Cuteness alert: Watch the island's adorable baby puffins as millions of them leave their nests in early August for that first oh-so-awkward attempt at flight. See the event as part of many organized tours (visiticeland.com). Memorable moment: Soak in one of the city's seven hot pots—outdoor thermal pools. Save by purchasing a Reykjavik Welcome Card, which includes admission to the hot pots plus five museums, a family park and a zoo, as well as transport on city buses and a ferry trip to Videy Island (a noted spot for bird watching). A 24-hour card is about $11 at today's exchange rates (visiticeland.com). Price check: Rates at the Park Inn Island Hotel, for instance, start from $87, and it has amenities that are roughly comparable with the ones offered at a Radisson in the U.S. Look to Icelandair.com for fare sales and air/hotel packages to Reykjavik. But shop aggressively for a rental car, which can be expensive in Iceland, by comparison shopping at metasearch websites such as Kayak. MEXICO Why in 2009: Our southern neighbor has always been relatively affordable, but this year is special. The U.S. dollar's exchange rate against the Mexican peso is at its most favorable point in 15 years. Prices should be down across Mexico, including in high-profile destinations like Mexico City, Oaxaca, and Cancun. Resort destinations that have become newly popular, such as Riviera Nayarit and Puerto Peñasco (Rocky Point) should be positively cheap this year. Main events: Catch some sun in Riviera Nayarit, a trendy tourist region recently launched by Mexican officials. About 20 miles north of the Puerto Vallarta International airport, the new hotspot stretches along 100 miles of Pacific coast (rivieranayarit.com). March brings the 25th anniversary of the Festival de México, an 18-day celebration of arts and culture held in the country's vibrant capital (festival.org.mx, free and ticketed). Starting May 10, residents of Oaxaca come together for a week of dance and processions (oaxacainfo.com). Memorable moment: The Easter season is a fine time to experience the country's culture up-close because of the often-exuberant ways that Mexicans celebrate the holiday. In San Miguel de Allende, Guanajuato, a Good Friday procession dramatizes key moments of Jesus's crucifixion, for example. And Easter Sunday commemorations end with participants exploding effigies of despised historical figures, including Judas Iscariot (internetsanmiguel.com, free). Price check: Budget Travel's Web tool can help you pinpoint the Mexican resort towns that are linked to your nearest airport by nonstop flights (budgettravel.com/nonstopmexico). For example, an all-inclusive package at the Tesoro Resorts in Ixtapa—on Mexico's Pacific Coast—includes food, alcoholic and nonalcoholic drinks, and lots of entertainment, starting at just $170 per room, per night, and children under 12 stay for free (tesororesorts.com, 866-998-3767). IN THE NEWS Major events and anniversaries should keep Berlin and Vancouver in the spotlight for much of the year. Plan ahead to be a part of the action, and take advantage of the favorable economic climate, too. BERLIN Why in 2009: It's the 20th anniversary of the fall of the Berlin Wall. Plus, the city's been on a long construction spree: Berlin now has one of the world's most dynamic skylines, thanks to innovative buildings such as the swoopy O2 World stadium and the city's vast, sleekly modern main train station. Despite all the moving and shaking, Berlin remains a bargain. Even in the financially flush year of 2007, four- and five-star rooms averaged €130 a night; comparable rooms in Paris and London priced out at more than twice as much. Splurge by opting for a fancier hotel than usual. Swissôtel Berlin, our pick for best value hotel in Europe, has rooms from $188 (011-49/30-220-100, swissotel.com/berlin). Main events: Throughout the year, Berlin will commemorate the fall of the Wall with concerts, memorials, and an open-air-exhibition in Alexanderplatz. On November 9, at the Brandenburg Gate, a symbolic wall of hundreds of five-foot-tall stones decorated by children will fall like dominos, launching a fireworks display (mauerfall09.com). Also in autumn, the rebuilt Neues Museum will open on Berlin's central Museum Island, displaying masterworks that include the world-famous bust of ancient Egypt's Queen Nefertiti. Memorable moment: Take the official, self-guided Berlin Wall tour using the GPS-integrated WallGuide (mauerguide.com, $13). Among the sights is Potsdamer Platz, the city's central plaza, surrounded by showstopping buildings that include Renzo Piano's gorgeous, glass-and-terra-cotta shopping arcade (visitberlin.de, free). Price check: Rooms in many of Berlin's three-star hotels will go for about $90 this year. Pension ABC, for example, is a squeaky-clean, family-run inn near Potsdamer Platz with doubles from $89 (011-49/30-2694-9903). VANCOUVER, B.C. Why in 2009: Americans heading to Canada finally have the U.S. dollar back on their side. Exchange rates have rebounded to 2005 levels. And fares into Vancouver for the first three months of 2009 are down 24 percent from a year earlier, says Farecast. Meanwhile, the city has been busy glamming itself up to prepare for February 2010, when it hosts the Winter Olympics. It's spent lots of money to retool infrastructure and unveil cool new venues. The Vancouver Convention and Exhibition Centre, for instance, is now topped with a six-acre rooftop garden of 400,000 native plants and wild grasses that are partly irrigated by a sophisticated rainwater collection system. Main events: Olympic host cities love to premiere cutting-edge architecture in advance of the Games, and Vancouver is no exception. Visit in 2009 to get a sneak peek (vancouver2010.com). A case in point is the Richmond Oval, a new 8,000-seat arena with a speed-skating track and a glass façade that yields clear, expansive views of the rugged North Shore Mountains (richmondoval.ca). Vancouver will also be trading on all the Olympian attention to tout its local arts and entertainment scene. The Cultural Olympiad's 400-plus events include ice sculptures, circus acts, and a concert by the band Arcade Fire (vancouver2010.com/culturalolympiad, Feb. 1–Mar. 21). Among the city's other events, Grammy-Award-winning saxophonist Sonny Rollins returns to the TD Canada Trust Vancouver International Jazz Festival on June 29 (admission from $67, coastaljazz.ca). Memorable moment: Cap off a visit to 1,000-acre Stanley Park with afternoon tea or dinner at The Fish House, a cozy clapboard 1930s building, complete with a fireplace, two patios, and live jazz on Thursday nights. It overlooks the park's gardens and forests of cedar, hemlock, and firs. Try the prawns, sautéed with garlic, roasted red peppers, tomatoes, basil, and feta cheese, then flambéed tableside with ouzo. (8901 Stanley Park Drive, 604/681-7275, fishhousestanleypark.com, flaming prawns $15). Price check: The Listel Hotel, a highly rated, artfully decorated boutique in the city's West End, recently put its rooms on sale via Orbitz starting at $65 a night—75 percent off the hotel's average price. BEAT THE CROWDS These countries are hardly undiscovered, but it's not too late to enjoy them either. Plan a trip in 2009, so you can say you knew these places before they were overrun. CAMBODIA Why in 2009: It's no longer a backpacker's secret. In 2008, the country drew about 2 million visitors, more than 10 times the number it drew a decade ago. Cambodia's still off the radar for most Americans, but it's poised to take the same path as its better-known neighbor Vietnam, which saw a similar number of visitors nine years ago and now draws roughly 4 million visitors annually. Look for independently owned guesthouses because the major resort chains haven't built much here yet; and by all means, go before the crowds get too thick. Main events: The sprawling Angkor complex and its magnificent Hindu and Buddhist temples between the 9th and 15th centuries will always be the star attractions here. Expect to spend at least two days exploring. In nearby Siem Reap, shop at the Artisans d'Angkor collective, where those making traditional handicrafts gain a guaranteed percentage of the profit (011-855/63-963-330, artisansdangkor.com). Memorable moment: Rent bicycles in and around Siem Reap for less than $2 a day. Although the somewhat creaky models and frequently unpaved roads can make for a bumpy ride, it's a low-key way to explore the temples at your own pace—and to see the Cambodian people and landscape more intimately. Price check: For recommendations for independently owned guesthouses, turn to Asiarooms.com, which recently listed rooms at Monoreach Angkor Hotel in Siem Reap at a starting rate of $33 per night. If you'd prefer an expert's guiding hand, consider Intrepid Travel's Heart of Cambodia tour. A guide will escort you around Phnom Penh, arrange a sunset viewing over Angkor Wat, and walk you through the depths of the Phnom Chhnork caves. The 15-day tour costs $1,400 per person (whether traveling single or as part of a couple), covering lodgings but not airfare—less than $100 a day (intrepidtravel.com). PANAMA Why in 2009: Panama has led tourism growth in Central and South American countries for two years running, posting back-to-back 20 and 30 percent gains in 2007 and 2008, respectively. Last year, the country surpassed the one-million-visitors mark, welcoming 1.2 million leisure travelers. That's about how popular Costa Rica was in 1999—before it emerged as a solidly mainstream destination. Compared with Costa Rica, Panama has more animal species and a larger amount of preserved terrain filled with colorful macaws, monkeys, and endangered shore birds. Main events: The Panama Jazz Festival, held January 1–17, will feature saxophonist Wayne Shorter's quartet (panamajazzfestival.com, from $10). Panama's Carnival celebrations, running February 2–24, are some of the largest pre-Lenten parties in the world. The bulk of the parades and revelry will take place in Panama City and Las Tablas (visitpanama.com). Memorable moment: Climb Cerro Jefe (Boss Mountain) in Chagres National Park, whose summit stands nearly 3,000 feet above sea level. When the weather cooperates, you can see the Panama Canal and both the Atlantic and Pacific oceans (visitpanama.com). Back in the capital, thread your way through the cobbled streets lined with Spanish mansions in the colonial-era district of Casco Viejo, used as a stand-in for Haiti in many scenes in Quantum of Solace. Price check: American Airlines Vacations has a three-night winter stay at the Veneto Hotel & Casino from $87 per person per night (aavacations.com). Keep a lid on costs by booking at locally owned inns. Among TripAdvisor's top rated B&Bs in Panama is La Estancia (011-507/314-1581, bedandbreakfastpanama.com, from $75 for singles and doubles). It's on a hill next to a nature reserve.