For our last stop we are staying in Paratay, a small town on the coast halfway between Rio and São Paulo. Tell anyone you're going to Paratay and, if they've been, they will tell you how wonderful it is and if they've not they'll say how much they want to go.

The town was established by Portuguese colonists in the seventeenth century and you could be forgiven for thinking the centre hasn't changed much since then. Whitewashed, old colonial houses still line the irregular cobbled streets (Kate described walking on the cobbles here as akin to navigating stepping stones) which are closed to motor traffic. In place of cars, horse pulled carriages convey tourists around the town. At each high tide the sea washes in - a deliberate strategy to keep the town clean - turning parts of the town into a mini-Venice. In the harbour dozens of brightly coloured boats offer trips around the tropical islands and beaches in the Bay of the Ilha Grande. Thickly forested mountains rise to over 1,000 metres forming an impressive wall of green behind the town.

Not surprising then that it has become a popular destination for both Brazilian and foreign tourists, especially as it is just a few hours drive from Brazil's two biggest cities. It has also attracted many artists and craftspeople and there are shopping opportunities aplenty along with many good restaurants and cafes. (Though I might regret buying the wooden armadillo, possibly the result of one too many caipirinhas).

Despite its popularity it still manages to retain an unhurried, tranquil feel. The absence of motor traffic undoubtedly helps and so does the attitude of local traders. Turn down an offer to sample the gastronomic delights of a restaurant or buy that special item of exquisite craftsmanship and you'll be met with a polite shrug and a wish to have a good day. Also you can't hurry here, if you tried it would probably quickly result in a broken ankle so everyone strolls around slowly and life takes on a lovely relaxed pace.

During the day it is largely deserted as most people are off taking part in one of the many activities on offer. Top of the list is that boat trip around the islands. Luckily we chose the only sunny day for ours and, it being off season, spent several pleasant hours on a largely deserted boat with stops to swim and snorkel in the warm and clear turquoise sea. Yesterday we took a bus and a boat to climb Paraty's own Sugar Loaf Mountain. The climb was hot and humid but worth the effort for the tremendous views over the Saco de Managua, described as a fiord but really just a flooded inlet into the mountains. The scenery was reminiscent of the west coast of Scotland, or what that coast would look like if it was transported to the tropics. We were rewarded for our hard work with a lovely meal of fish fresh from the sea at the local equivalent of Riley's Fish Shack (an eating place on the beach in Tynemouth).

But now our trip is drawing to a close. This afternoon we get the bus back to Rio and then we fly to the UK via Lisbon tomorrow, arriving back in Newcastle on Tuesday evening. But we still have a morning in Rio to look forward to and then meeting Frankie for lunch on Tuesday. A holiday's not over until it's over!