We actually went up the peak twice, once by tram and then walking in a group. Both were enjoyable in their own way, but I would say the tram is a must because of the history and the uniqueness of the experience.
The view from the top is spectacular on a clear day but beware of the mist and fog that is common in Hong Kong.
At the top there are many shops, restaurants and bars, as well as walks around the peak.
Goes without saying that this is the thing to do in Hong Kong.
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