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Paraguay Hotels and Resorts - The capital, 450-year-old Asuncion (known as the Mother of Cities) merits a stay of two leisurely nights -- that way, you'll have time to sit in the main square and people watch. The shopping in this city of 1,080,000 is the best the country offers, and the cathedral and archaeological museum are both highlights. The governmental architecture is interesting: Don't miss the Congressional Palace, Customs House and Government Palace (in the style of the Louvre in Paris).

You'll find great views of the city from the restaurant on the top floor of the Guarani Hotel (at night, you can see the lights from Clorinda, Argentina, across the river). The Plaza de los Heroes, where you'll see the Tomb of the Unknown Soldier, has been renovated to accommodate an underground parking lot and shops. At ground level, the water garden is worth seeing. The plaza is also a good place for people watching (a lot of them will be drinking terrere, a popular local drink, at outdoor cafes) and for shopping for local handicrafts at outdoor artisan stalls. The Botanical Gardens make a good break from the bustling downtown.