Well worth paying the 5 euros entry. You get 4 glasses of Madeiran wine at the end of the trip. What a great wine. If you like port or sherry you will love it.
The lodge is on one of the streets behind the main promenade, close to where the courtesy coaches drop you off. Walk through the shopping centre, and the street behind is the location of the lodge. English tours are done 4 times a say - but not Sunday.
You can get the lodge and the Monte palace gardens and cable car trip done in a day
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