The Blue Mountains are named for the delicate azure haze that lingers along the region, which is actually a fine cloud of oil emitted by eucalyptus trees. The mystical mountains are a labyrinth of plateaus, gorges and gum trees. Check out the Katoomba Scenic Railway (the steepest railway in the world), the Jenolan Caves and the Giant Staircase nature walk.

Lovely, laid-back Melbourne has something for everyone: family fare, local and international art, haute boutiques, multicultural dining, Australian and Aboriginal history, spectator sports, and pulsing, swanky nightlife. Cruise on the free City Circle Tram loop to check out unique attractions like the Royal Botanical Gardens and the Healesville Sanctuary, which buzzes with local animal species.