Algarve, only 2 hours south of Lisbon, offers soft golden sandy beaches with natural rock formations throughout the coast, water as warm as the Mediterranean. You can find a variety of small towns, such as: Albufeira, where the Moorish influence is abundantly obvious; Portimão, the famous fishing village; Sagres, famous for its school of Navigation, and Faro, the capital city of Algarve since the middle of the 16th century.