Salvador is one of Brazil’s richest cultural hotspots. With its huge street carnival, countless outdoor festivals and a population that is known for its relaxed, easygoing demeanor, Salvador is often called Brazil’s Capital of Happiness. It’s Brazil’s third largest city and capital of the northeastern state of Bahia. Salvador is one of the oldest cities in the New World; the Portuguese saw the location’s potential as a port and trading center, so they placed their first colonial capital here on the shores of the Bay of All Saints.

Salvador is built on a peninsula that separates the bay from the vast Atlantic Ocean. A towering cliff runs along the bay, dividing the city into two distinct areas. Cidade Baixa is found on the lower level; the newer parts of the city and much of Salvador’s commercial districts are found here along the shore of the bay. Atop the cliff is Cidade Alta, where travelers will find the historic colonial center of Pelourinho.

Although the lifestyle found in Salvador may not be as fast-paced as that in Sao Paulo or Rio, this city has been crucial to business since its founding. During the colonial era it was the center of the South American slave trade and the primary port for Europe-bound shipping. Today tourism is the biggest industry here, but many international companies can be found in Salvador. Ford, for example, has a large facility in the suburbs. It’s the only automotive plant in all of Northern Brazil.

Salvador is known for its culture. It has excellent musical, artistic and literary scenes. Some of Brazil’s most famous writers and musicians have hailed from this city. It’s also a great place for boutique shopping; while locals like the large, American-style malls, try the old town area for small shops and art galleries displaying the work of local artisans. Bartering is essential here; you can almost always get a better deal if you try.

Bahia has some of the best restaurants in Brazil. Most of them offer spicy South American fare influenced by Salvador’s rich African heritage. There are restaurants to fit any budget, but head to the street vendors of the Terreiro de Jesus in Pelourinho to sample some local specialties like acaraje or vatape.

Salvador, Bahia, is the capital of the State of Bahia.

San Salvador is the capital of El Salvador.