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It wouldn't be easy to find another stretch of land that offers such a cultural and natural variety as Liechtenstein. Yet this small country, squeezed between Austria and Switzerland, is better known to international bankers than tourists.

The visitors who do go can enjoy the natural beauty and the surprisingly vivid cultural scene of Liechtenstein. There is hiking in the mountains in summer, skiing in winter and wine tasting in the fall.

Liechtensteiners enjoy the highest per-capita income in all of Europe, and although they do depend on their neighbors Austria and Switzerland, they love their sovereignty. The country is a stable democracy, yet its people did vote to give a few extra powers to the prince.

The capital is a surprise to most visitors. Vaduz is small, but it doesn't really look quaint—it is marked by modern architecture, banks and office buildings. Visitors will find relief from harsh lines in the picturesque medieval castle and the fact that the mountains are only a few minutes away.

Geography

Separated from Switzerland by the Rhine River, Liechtenstein lies mostly in the Alps. The western side, or Low Country, is a narrow strip of river valley, covered with meadows, orchards, vineyards and villages. The eastern side, or Upper Country, contains the western foothills of the central Alps, with peaks reaching above 8,000 ft/2,440 m.

Liechtenstein remains engaged in an international land dispute. The principality claims 615 sq mi/1,600 sq km of Czech territory confiscated from its royal family in 1918. The territory in dispute is 10 times bigger than all of Liechtenstein. Since Liechtenstein neither has an army nor shares a border with the Czech Republic, not much is likely to come from the disagreement.

History

The area of Liechtenstein has been inhabited since neolithic times. The land was populated by Rhaethians and Celtic tribes before the Romans built a road across the swampy and often flooded Upper Rhine Valley. In the early Middle Ages, Alemannic tribes settled in the area. Names and villages of Liechtenstein were first listed in 842, but the first recorded settlers in the region were the Walsers, who arrived in the 1200s. Liechtenstein's current borders were established in 1434, when the upper and lower territories merged.

The country became a principality under the Roman Empire in 1719. In 1805, Liechtenstein became sovereign, and in 1815, it joined the German Confederation as a sovereign state. When the German Confederation dissolved in 1866, Liechtenstein gained full independence. The state remained poor: The textile industry meant some work for women, but many male Liechtensteiners emigrated to the U.S. In 1861, the first bank was established in Liechtenstein, and soon after the country dissolved its costly army.

Liechtenstein remained neutral in World War II but was badly affected by the collapse of Austria-Hungary. A new customs and monetary union with Switzerland brought prosperity. Industrialization, low taxes and liberal banking secrecy laws ensured Liechtenstein's ever-growing prosperity. In the late 1990s, money-laundering issues obscured the country's image in the European Union and the U.S., but Liechtenstein managed to clean up its act.

Since 1921, Liechtenstein has been a constitutional monarchy, with members of its legislative branch, the Diet, elected by direct popular vote. Liechtensteiners have tried to peacefully resolve conflicts with their princes, such as the case of Prince Hans Adam II. The citizens granted him more executive rights to keep him from returning to Vienna, but they also voted themselves more liberties.

Snapshot

Liechtenstein's main attractions are rugged mountain scenery, rare flora and fauna, hiking, skiing, museums, mineral baths, vineyards, mountaineering, camping, serene valleys, postage stamps, financial investments, friendly people and good food.

Liechtenstein is a good destination for those who are interested in Alpine scenery, hiking trails, skiing (in winter) and relaxation. Travelers should not go looking for varied nightlife, lots of shopping or deluxe hotels and restaurants.

Potpourri

Liechtenstein may look rural, yet only 2% of its workforce earns its living through agriculture. About 80,000 companies are registered in the country, almost three per inhabitant. The companies take advantage of the low taxes, but many are little more than mailboxes. In addition to banking, Liechtenstein has a thriving false-teeth industry.

Citizens of Liechtenstein enjoy the lowest tax rates of any country in Europe. Becoming a citizen, however, is no easy matter—the people are wary of "foreignization," and every applicant is put to a vote among the people in the community in which he or she wishes to reside.

The nation has direct diplomatic relations with only four other countries: Switzerland, Austria, Belgium and Vatican City. The Swiss handle all other affairs, though Liechtenstein retains the right to enter direct contact with other states.

Liechtenstein is the only state that has German as its only official language. Other German-speaking countries (including Germany) have official minority languages.

Liechtenstein was the first country in the world to introduce compulsory school education (1805).

Liechtenstein has 6 mi/9.5 km of rail tracks (between Buchs and Feldkirch, operated by Austrian Railways), but no railway station or train stop.

The nation's parliament (Landtag) initially had two parties, known informally as the "reds" and "blacks," but they united to bolster the nation's independence after watching Germany's army march into Austria in 1938. To this day, however, citizens trace their family's membership to the original parties and will identify themselves as either "reds" or "blacks.

In the last war Liechtenstein took part in, its 80 troops returned with 81 men: An Austrian had joined. Liechtenstein dissolved its standing army in 1868. A police force of 60 is now responsible for public safety.

One-eighth of Liechtenstein's total earnings come from the sale of postage stamps. You can receive information on new issues from the Postwertzeichenstelle der Regierung, Fl-9490 Vaduz, Liechtenstein. New stamps are usually issued in March, June, September and December.