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This city is like San Francisco meets Harry Potter. There's history, culture, plenty of sights which are mostly accessible by walking and streets and alleys at strange angles. Somehow, all paths seem to lead to and from the waterfront and back to the Capitol. Great boutique hotels (check out the Bolton), an old graveyard that could be out of a Hollywood blockbuster, shops, cafes...it's all there.
Lord of the Rings fans have plenty to see and do in and around the city. Check out Adventure Safari tours for a memorable tour that's well worth the fee.