Posted on Sun, Jul. 22, 2007

For decades, Hong Kong was Asia's glitziest city. Though Tokyo and Shanghai now vie for the title, Hong Kong retains a sense of drama that's unmatched. The peaks of its main island frame sleek towers jutting from an exquisite harbor that's rimmed by enough neon to give Vegas a run.

Ten years after its hand-over to mainland China, the city retains both Western influences and and an air of Chinese authenticity. Fruit stalls and tiny markets still line alleyways amid the skyscrapers, and the stateliness of colonial parks and buildings creates a sense of balance between tradition and future.

For tourists, there's plenty new: a space-age entertainment complex atop Victoria Peak, a museum dedicated to Dr. Sun Yat-sen, visitor shops and restaurants near the Giant Buddha on the wooded preserve of Lantau Island, a new Star Ferry terminal and, of course, Disneyland.

The club scene remains young and pub-ish; the hot spot of the moment, Volar, features attitudinal doormen who aren't likely to admit anyone over 25. But restaurants have clearly turned up the sophistication level. Snag a reservation at BO Innovation, the showplace of ''Demon Chef'' Alvin Leung (www.boinnovation.com); culinary adventurers should go for the chef's table for a rollercoaster of extreme Chinese flavors.

The city's best rides are still two of its cheapest. The Peak Tram is just what it sounds like -- a decades-old tram that runs up a rail toward Hong Kong Island's crowning glory, Victoria Peak. For about $4.25 round trip you can take the tram up the hillside, gliding past green parks and freeways and skyscrapers awkwardly perched at improbable angles. (Of course, they're really vertical; the tram is at an angle.)

Hong Kong's other great ride is the Star Ferry. About 30 cents buys passage from Hong Kong Island to Kowloon. The ride takes about 15 minutes, allowing for plenty of time for breezes and great views of both sides.

An hour away by speed ferry, the former Portuguese colony of Macau, which returned to Chinese control in 1999, has exploded. The hotel/casinos get most of the buzz -- Wynn has opened a carbon copy of its Las Vegas hotel here, and a replica of the Venetian is due to open in August.

But there's more to Macao than gambling. The whimsical Fisherman's Wharf theme park mixes a Potala Palace area with Roman ruins, dotted with shops, restaurants and rides. The Macau Tower offers the world's highest commercial bungee jump plus staggering views for the risk-averse.

Best, still, are its centuries-old historic sites, from the Ama Chinese temple to the Portuguese-flavored Senado Square. Plan extra time for the Museum of Macao, an interactive space that traces the city's development.

LODGING TIP

Kowloon is best for views and museum access; staying amid Hong Kong's greenery is more soothing. On Kowloon, add the Langham (great rooms, fab location and reasonable pricing, www.langhamhotels.com) to the list of faves, along with the famed Peninsula and view-rich InterContinental. On the Hong Kong side, the Mandarin, Ritz-Carlton and Four Seasons are tops; new is the style-savvy LKF (www.splendia.com) in the hip Lan Kwai Fong district.

Budgetwise, the YMCA/YWCA hotels can't be beat. On Kowloon, try for the Salisbury (www.ymcahk.org.hk), next to the Peninsula; on Hong Kong, check out the Garden View (//hotel.ywca.org.hk).

-- JANE WOOLDRIDGE