What Uruguay lacks in size, variety and dramatic landscapes it compensates for in hospitality. Knowing that their scenery and cultural attractions can't really compete with those of their neighbors, Brazil and Argentina, Uruguayans have focused their tourism efforts on establishing memorable small hotels and resorts. The result is a surprising variety of accommodations, ranging from swanky beach hideaways to rustic ranch retreats.

The people of Uruguay, almost entirely of Spanish and Italian ancestry, are unique in South America in that they are mostly middle class - there aren't the extremes of wealth and poverty that plague the rest of the continent (a legacy of the country's progressive social services). As a result, the nation enjoys a relatively high standard of living and literacy.