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Monaco is not so much a country as it is a family project, passed along from one generation to the next. Since 1297, the Grimaldi dynasty has shaped everything from its borders to its image, and it's hard to separate the principality from its principals: When was the last time you read an article about Monaco that didn't fill you in on the latest drama involving the royal family?

There is, of course, more to Monaco than gossip about Princess Caroline's daughter, Charlotte Casiraghi, and her romance and out-of-wedlock child with French actor Gad Elmaleh, or nostalgia for Princess Grace, but almost everything in the principality seems to have a connection to someone whose name is preceded by the letters H.S.H. (His—or Her—Serene Highness).

Visitors will find that Monaco's museums display a quirky mix of historical interpretation and family bragging, scientific exhibitions and personal collections. Several of its streets, gardens and buildings bear the names of related rulers, past and present.

It is the presence of a royal family, however, that bestows legitimacy on Monaco's reputation as a playground for the rich and famous (and it is a pricey destination, even by southern European standards). Yet what the Grimaldis and their subjects have built is not out of reach for travelers of more modest means. In many respects, it's similar to the rest of the French Riviera, offering a pleasant mix of scenic views, beaches and upscale shopping. And, like much of the Riviera, it also has areas that are overbuilt to the point of distraction that range from ugly to stylish. Take, for example, the Tour Odeon, an ultracontemporary 550-ft/170-m tower with a 300 million-euro penthouse for sale, just one of the many new high-rise additions.

Once you've learned a bit about its history, perhaps the most impressive thing about Monaco is that it exists. The Grimaldis have pulled off quite a feat: Generation after generation, spanning a period of more than 700 years, the family has positioned and repositioned its nation to find a role in an ever-evolving Europe. They have managed to maintain a degree of independence by accepting that there are, in fact, degrees of independence, and that some is better than none.

Must See or Do

Sights—The view of the Monaco Yacht Club and the Port Hercule from the Jardin Exotique on the Rock; the ornate Le Casino de Monte Carlo; the Grands Appartements du Palais Princier for a glimpse of the historic throne room.

Museums—Nouveau Musee National de Monaco for cutting-edge contemporary art shows; the Musee Oceanographique for the shark lagoon and unusual tropical fish; the Collection de Voitures Anciennes de S.A.S. Le Prince de Monaco for the vintage luxury cars and Formula One Ferraris.

Memorable Meals—Elsa at Monte Carlo Beach for the delicious, ultrafresh 100% organic refined cuisine; Le Louis XV at the Hotel de Paris for Alain Ducasse's fine Mediterranean cuisine; Song Qi for the perfectly cooked Peking Duck and delicious starters; the Blue Bay at Monte Carlo Bay Hotel & Resort for its creative Caribbean-meets-Mediterranean cuisine.

Late Night—The Buddha-Bar for chill-out and live DJs; Jimmy'z, a notorious starry disco;
La Note Bleue for live jazz; the Sass Cafe, a must for the see-and-be-seen crowd.

Walks—A stroll through the lush Exotic Garden and Observatory Caves; the Princesse Grace Rose Gardens, with more than 8,500 bushes of every variety; the mini-Japanese Garden, near the Grimaldi Forum.

Especially for Kids—Parc Princesse Antoinette, a huge shaded park with everything from swings and sandboxes to table tennis and minigolf; the superb Monte Carlo Circus Festival every January.

Geography

As is often pointed out, the entire principality is only 1 sq m/2 sq km, half the size of New York City's Central Park, but that's a somewhat deceptive analogy—Central Park would not be nearly as easy to negotiate if it were tilted at a 45-degree angle. It is Monaco's severe topography, however, that gives it its dramatic scenic perspectives, whether you are looking up from a harbor toward the surrounding cliffs, or peering down at the coastline from a high vantage point. We do wish that tourist maps were topographical—streets that look to be a block apart can be on levels separated by dramatic drop-offs.

Monaco is basically a city that can be divided into six distinct neighborhoods: Fontvieille, a modern area partially built on reclaimed coastline; Monaco-Ville, the oldest and most picturesque neighborhood, where the palace is; Moneghetti, a group of ugly apartment buildings with fabulous views, in the upper reaches of Monaco; La Condamine, the area that surrounds the Port of Monaco; Monte Carlo, where the casinos and top hotels are located; and Larvotto, a peninsula where the beaches and sporting clubs are found.

History

The first recorded inhabitants of this natural harbor were the Ligurian tribe, who settled in the sixth century BC (They were dubbed the "Monoikos" by the Greeks.)

The Grimaldis arrived in 1297. Guelph Francois Grimaldi, disguised as the leader of a band of monks, seized the harbor from a rival Genoese family (the Grimaldi coat of arms depicts two monks brandishing swords). Monegasque rulers then skillfully played France, Spain and the various principalities of Italy off one another to maintain independence. Through cunning, luck, wisdom and, above all, tenacity, they held, and even expanded, their ground.

By the turn of the 19th century, Monaco's power seemed to be entering a period of decline. But in 1856, the Societe des Bains de Monaco was formed, and the principality began promoting itself as a spa resort town. In 1868, Monaco was connected to the French railway system. Charles Garnier, architect of the Opera House in Paris, was hired to design a casino and, for good measure, the name of the casino's clifflike setting was changed from "Le Plateau des Spelugues" to the more glamorous "Monte Carlo."

By 1885, Monaco was the place to spend the Christmas holidays (at that time, thermal baths, not the beach, were the primary draw, and winter was its high season). Gambling at that time was illegal in France, Italy and Germany. And lest the country be thought of as too stuffy, Monaco inaugurated the Grand Prix road rally in 1929.

Its political position today is not so different from what it has been for hundreds of years. France has guaranteed to defend its sovereignty in exchange for a pledge that Monaco will exercise its sovereign rights in accordance with French interests (the French prime minister has an official residence in Monaco). The principality attained full membership in the United Nations in 1993.

A constitution, drawn up in 1962, defines the government as a constitutional hereditary monarchy. Although the ruling prince must exercise power within the framework of the constitution, his power is nearly absolute. A popularly elected Local Council handles purely administrative tasks, and a popularly elected National Council passes legislation and approves budgets in open meetings—although it can only consider initiatives sent by the prince. Although it is a totalitarian state by most definitions, it treats its citizenry more benignly than many popularly elected governments, and in any case, a prosperous nation whose citizens and foreign residents (French citizens excepted) pay no income taxes is unlikely to generate much in the way of dissent.

Following Prince Rainier's death in early 2005, his only son, Prince Albert, took over as the country's ruler. But first, the laws of succession had to be changed because Albert was once adamant about remaining a bachelor (some called him the most eligible bachelor in Europe) with no prospect of producing an heir. The change allowed Albert's sister Caroline to inherit the throne upon his death or abdication, with the line to be carried on by her eldest son. But now Monaco rejoices: The 2011 wedding of Prince Albert and Miss Charlene Wittstock, a South African-born champion swimmer, changed all that. Princess Charlene gave birth to twins in late 2014.

But not to worry too much about the lineage anyway: In 2002, Prince Rainier signed a new treaty with France that guarantees Monaco's sovereignty even if the Grimaldi lineage expires. Albert has had work to do: He has succeeded in cleaning up Monaco's not-so-glamourous image as a haven for money laundering. Today, only 3%-4% of Monaco's income is generated by the casinos, and the 1 billion euro "turnover" of "Grimaldi Incorporated" comes from tourism, international conventions, sales of stamps, and, yes, taxes—mostly VAT (value-added tax), but also commercial taxes paid by foreign companies, including the 40-odd international banking institutions that have offices in Monaco.

Snapshot

Monaco's primary attractions are beaches, sophisticated gaming, yachting, the Grand Prix, the palace, wonderful food, world-class cultural events and high-end shopping.

A visit to Monaco should be included in any vacation with a focus on the French or Italian Riviera—it provides yet another dimension to this type of beach holiday. But don't try to cram it into a general south-of-France itinerary unless you have time for a novelty item—there are many more interesting towns in Provence, and, if you're simply interested in a sample of life along the Mediterranean, we recommend a visit to one of the smaller Riviera towns. If you're traveling on a shoestring budget and simply want to say you've been to Monaco—well, there's no cost in walking the entire length and breadth of the country on a single day trip.

A word of warning: If you don't like crowds, long lines or loud music, it might be best to avoid visiting during the months of July and August, the peak tourist season, when the principality is heaving with coach tours and day-trippers from France.

Potpourri

Monegasque, the original language of Monaco, is still taught in schools.

In the 17th century, Prince Louis I of Monaco made an ostentatious entry into Rome riding a horse shod in pure silver. Alas, the shoes fell off as he approached the Vatican and were quickly grabbed by members of the crowd.

The letters "YCM" under a boat's name in the harbor indicate that its owner is a member of the Yacht Club de Monaco.

Monaco has the highest population density in the world—almost double that of Singapore.

Small as it is, Monaco has a national park, the Underwater Reserve of Monaco. It extends from the beaches of Larvotto to the open sea.

Anyone interested in Irish literature, theater or song will want to visit the Princess Grace Irish Library, which houses her personal collections as well as that of the explorer Mungo Park. Symposia on Irish topics and other activities are held there as well.

Monaco appears to be graffiti-free, perhaps the only graffiti-free country in the world. Don't try to change that, as hundreds of surveillance cameras are stationed to watch every move you make.

A frequent visitor to the Cote d'Azur, Queen Victoria created a society in 1882 dedicated to the abolition of the Monte Carlo Casino, which she considered a den of iniquity … to no avail.

Monaco doesn't have a single public launderette. Obviously, such mundane installations are not needed in this country.

Monaco uses the euro but can mint its own euro coins. Although they are legal tender, not many of them circulate because they are eagerly snapped up as collector's items.

Location

Cruise ships visiting Monaco dock at the modern cruise ship pier at the edge of the Port Hercule. If the dock is full, visitors are tendered into the port. The pier is only 1,500 ft/457 m from the Old Town, accessed via stairs and elevators. The center of Monte Carlo is about 1 mi/1.6 km from the port. Taxis wait outside the gate to the port terminal.

There is also a bus that stops at the port terminal every 15 minutes. The bus allows you to see Monaco and hop on and off at points of interest, including the Grimaldi Forum, the Monte Carlo Casino, the Oceanographic Museum and the Prince's Palace. Tickets may be purchased directly from the driver; 21 euros for adults, 19 euros for children ages 4-8. The bus runs every day of the year 10 am-6 pm, with the exception of special events. http://monacolegrandtour.com.

Alternatively, you can cross the harbor on the Bateau Bus, a water taxi that runs from the cruise terminal to the foot of Condamine district. Daily 8 am-8 pm. 2 euros. http://www.cam.mc/services.php?idservice=14.

It is also possible to take city buses around the city, but the nearest bus stop is quite far from the dock.