Fast facts

• Capital of Cyprus
• Population: 208,000
• Currency: Cyprus Pound (CYP)
• Conversion rate: £1 = 0.845 CYP (mid-May)
• IDD country code: +357
• Flying time from London: 4 hours 20 minutes

The city of Nicosia lies pretty much smack bang in the middle of this holiday island, right on the border between the Greek and the Turkish-administered sides of Cyprus.

The island, which is just south of Turkey, in the Mediterranean, has been divided since 1974. While negotiations between the Greeks and the Turks to reunify have so far failed to achieve an agreement, a reunified Cyprus is thought to be highly likely within the next few years, and Nicosia would be the clear choice as the new unified state's capital.

Sunshine state

The island's economy and its international reputation revolves around the sun - quite literally, with more than 300 days of sunshine a year - and Cypriots enjoy a high standard of living as a result. There's a low crime rate, no official homelessness, and the majority of people own their own homes.

This is an easy place for foreigners to visit, especially Brits. People are friendly, just about all of them speak English, and thanks to a fairly recent heritage of British rule, everyone drives on the left.

Bean counters and potatoes

Nicosia is home to more than a quarter of Greek Cyprus' population, with the others centred mainly around the coastal centres of Paphos and Larnaca. There's a high standard of education, and the services sector dominates the Cypriot economy, making up 76% of GDP. In addition to tourism, banking and financial services, insurance, engineering, consultancy, architecture and design are all key contributors to Cyprus' wealth.

The significance of agriculture is diminishing, but Cyprus still exports citrus fruit and potatoes.

Nicosia itself is a modern cosmopolitan city that frequently hosts conferences and trade fairs, and is home to three industrial estates that are well served by road links to the airports and seaports. The Government's largely 'hands-off' approach to economic management has made Cyprus an attractive destination for foreign investment.

Where crafts meet commerce

Nicosia's existence can be traced back to the Bronze Age, and today the buzz of a modern city is blended with an air of history. The city centre is encircled by 16th century Venetian walls, and the narrow streets of old town are peppered with museums, ancient churches and monasteries.

Craftsmen keep alive traditional skills of the island in tucked-away workshops in a pedestrianised section of town called Laiki Yitonia, or Folk Neighbourhood, and nearby there are cosy tavernas and cafes as well as glitzy boutiques. The balconies of the old houses above are hung with flowers in the summer, and the streets are filled with their fragrance on summer evenings.

The city proper is centred on Freedom Square (Eleftheria), where you'll find the main post office, the public library, and city hall. Ledra Street alongside the square leads to the most lively part of the old town.

Sights around town include Agia Fanomerenia, a church built from a tumbledown castle and convent, where bishops killed in the 1821 uprising have been laid to rest. The Archbishop's Palace - which looks old but was actually built in the 1950s - is home to a museum of religious icons from Cyprus. The gothic St John's Cathedral is next door to the palace, and its 17th century frescoes are worth a look. Among the many other museums is the Levention Municipal Museum, which charts the history of the island from ancient times to the modern day in a lively and interesting way.

Outside the city, the countryside is varied and beautiful, from lemon orchards, olive groves and market gardens to the dramatic Kyrenia mountain range. And then, of course, there are the beaches, which attract tourists - and many retirees, thanks to Cyprus' favourable tax rules - from all over the world just about year-round.

Endless summers

Extremes in temperature are rare in Cyprus. At the height of summer, the mercury hovers around 32 degrees, but the warm summer season extends until late October. After that it starts to get a bit chilly for swimming, but is still warm and pleasant during the day.

December and January are the coldest months of the year - average daytime temperatures are about 16 degrees - and the time when you're most likely to need an umbrella, but there are still six hours of sunshine a day, and spring springs early here - February - so you don't need a coat for long.

Direct routes

Passenger flights to Cyprus do not go directly into Nicosia, but to airports in either Larnaca or Paphos, both of which have cheap bus routes into Nicosia, and taxis are available. Airlines running scheduled services to Cyprus include British Airways, KLM, Lufthansa, Aegean Airlines, Emirates and Cyprus Airways.

The many budget and charter options include Avro, Excel, ThomsonFly, Helios and First Choice, which fly from airports all over the UK, among them Exeter, Bristol, Birmingham, Cardiff, Manchester, Hull, East Midlands, Newcastle and Edinburgh.

There are no direct flights to northern Cyprus, which is not recognised by the international community, so all flights go via Turkey. Crossing the border is not a simple task, however - most taxis refuse to do the crossing - so if you're heading for the south, it's best to fly straight there.