Algarve or Lisbon?

The Algarve is a beach destination in its own right, with two quite different shores. Between Lagos and Albufeira there are small sandy coves under ochre cliffs and sea stacks. On the barrier islands of the Ria Formosa there are long, quiet beaches with gentler water, and the sea in the east warms a couple of degrees more than off Lisbon.

Lisbon has no beach in the city itself. The riverside train runs out to Carcavelos, Estoril and Cascais, and Caparica and the clear Arrábida coves lie across the Tagus. The water is cooler, though, and a beach day stays a break from the city rather than the reason for coming.

Both kitchens are built on grilled fish and Atlantic seafood, but Lisbon offers more of it and in more forms. There are family tascas, seafood beer halls, warm custard tarts in every pastelaria, cheap glasses of Alentejo and Douro wine, and the Ribeira and Campo de Ourique markets. The best meals are in the residential neighbourhoods rather than around Baixa.

In the Algarve, good eating is found in a few places: the market halls of Olhão and the harbour quarters of Tavira, Portimão and old Lagos, where cataplana and goose barnacles are the local specialities. The resort strips water it down, so your choice of base matters more here than it does in Lisbon.

This is where the two differ most in purpose. Lisbon has monuments and museums worth a trip on their own. The Jerónimos Monastery and Belém Tower, the Baixa grid rebuilt after the 1755 earthquake, the castle above Alfama, the Gulbenkian and the National Tile Museum fill three or four full days.

The Algarve offers pleasant old towns instead: the red sandstone castle at Silves, Tavira's spires and old bridge, Faro's walled centre and the fortress at Sagres. They make good half days between beach days but rarely shape a trip.

Lisbon's nights happen on the street and go on all year. Crowds stand in the lanes of Bairro Alto, the bars of Cais do Sodré run later, Príncipe Real has quieter cocktail bars, and the riverside warehouse clubs fill after 2am. The mood is relaxed rather than glamorous.

The Algarve's nightlife is seasonal and built around the resorts. It is loudest on Albufeira's Strip with package groups, younger in Lagos and dressier at the Vilamoura marina, and it largely fades outside June to September. Tavira and the west coast suit anyone who wants nothing more than a quiet drink on the square.

Both offer Atlantic cliffs and surf rather than mountains, so the difference lies in how the landscape is arranged. In the Algarve the coast itself is the attraction. There is the Seven Hanging Valleys trail, kayaking into the Benagil caves, the wild Costa Vicentina park and the flamingos of the Ria Formosa lagoon, with the wooded Serra de Monchique inland.

Lisbon's outdoors is spread around a city. The Monsanto forest park is inside it, the misty Sintra hills and Cabo da Roca lie to the west, Guincho has kitesurfing and Ericeira is a surf reserve. To the south are the Arrábida ridges and the Sado dolphins. Both are best walked in spring and autumn.

Lisbon has far more within a day's reach. Sintra's palaces are about forty minutes away by train, and Cascais and the palace-convent at Mafra are close by. Évora, Óbidos and the monasteries of Alcobaça, Batalha and Tomar each make a full day out.

From the Algarve the list is shorter. Seville is about two hours' drive from the eastern end, and Mértola, the Guadiana border villages and the boats to Culatra are nearer. Most other outings are to the region's own towns, and after a week they run out.

The Algarve is set up for children in a way Lisbon is not. It has shallow, sheltered water at Alvor, Armação de Pêra and on the Ria Formosa islands, water parks inland from Albufeira, Zoomarine, and villas and resorts with pools and kids' clubs. The main drawbacks are the steep stairs down to the central coves and the midday heat in July and August.

Lisbon is good for a day or two with children: the Oceanário and the science centre at Parque das Nações, trams and funiculars to ride, and the train out to the Cascais beaches. But the hills, stairways and slippery pavements make every day harder with a pushchair.

In Lisbon a car is more trouble than it is worth. The centre is walkable, if steep, and the metro, trams, funiculars, suburban trains and ferries all use one card, so you can reach Sintra and Cascais without driving.

In the Algarve you will almost certainly need a hire car. The A22 runs from Lagos to Tavira in about an hour, but the coastal railway is slow, its stations are often far from town, and buses rarely reach the beaches. Staying in Lagos, Tavira or Faro without a car works only if you accept fewer beaches.

Lisbon has the wider range. The luxury houses line Avenida da Liberdade, Chiado has its long-established shops, Príncipe Real has local designers, and there are the Feira da Ladra flea market and the LX Factory. Azulejos, Burel wool and embroidered linens are worth taking home.

The Algarve's shopping is mostly local produce and crafts. Loulé's market hall and Saturday market are the best of it, with painted ceramics near Porches and sea salt from Castro Marim and Olhão. Beyond that there are malls, an outlet centre and resort souvenirs.

Costs come out much the same. In both, the room is the expensive part, while meals and wine stay cheap by northern European standards. Where they differ is in how you save.

In the Algarve, you add car hire, and you keep costs down by staying in Tavira or Olhão rather than a beach villa or Almancil's golf enclaves, and by coming in June or late September. In Lisbon, transport fares are low, and the savings come from sleeping just outside the centre and eating away from Baixa, Chiado and the rooftop bars.

Lisbon has fado every night in Alfama, Mouraria and Bairro Alto, often in small rooms where neighbours take turns singing. On top of that there are the São Carlos opera house, the Gulbenkian orchestra and the Centro Cultural de Belém.

The Algarve has little of this. There are modest municipal theatres in Faro and Loulé, summer festivals such as Loulé's world music nights and the medieval fairs in Silves, and fado that is mostly staged for diners.

For rest, the Algarve has the edge. Resort spas are common between Albufeira and Quinta do Lago, the warm springs of Caldas de Monchique have been used since Roman times, and yoga and surf retreats gather near Aljezur. Tavira and the west coast are slow and peaceful, though the central resorts in August are not.

Lisbon has no bathing tradition, and its old quarters are noisy and hilly. Its restful side is in long lunches, river viewpoints and gardens such as the Gulbenkian's. A quiet stay usually means sleeping out on the Cascais coast or in the Sintra hills.