Hammamet has come a long way since its days as a sleepy fishing village adopted by a Bohemian clientele. What would the likes of painter Paul Klee or writer Andre Gide think of it now? Chances are they'd still want to come, for the nice thing about Hammamet is that change has boosted rather than blandified its core attractions. It is still very much "the garden resort", lush with shady ficus, lemon trees, bougainvillea and oleander - just a little larger than it used to be.

All our hotels have wonderful sub-tropical gardens, and so has the beautiful Moorish villa of the late George Sebastian, a Romanian aristocrat and patron of the arts who declared no building in Hammamet should be higher than a palm tree. The spare style - almost Arts & Crafts - of his former home, now part of the International Cultural Centre, is a perfect foil for exhibitions of contemporary art and craftwork. A treat to visit. Hugging the walls of the old medina with its castle by the sea is the new Sidi Bou Hdid cafe. Borrowing the exotic ambience of traditional Tunisian cafes, this is the latest hub, tourists and locals alike relaxing against its vivid cushions to sip mint tea with pine nuts or drink freshly-squeezed orange juice as the apple-scented smoke of hookah pipes fuses with the sea breeze.

Bright, off-duty fishing boats laze upon the harbour beach. Along the new promenade, palm trees are already sprouting. Other cafes, snack bars, restaurants and ice-cream parlours waylay passers-by. Hammamet has charm in spades. It is also smart - smart enough, above all, to preserve the romance of its past and remain individual. There is still bargaining to be done in the souk - never under pressure, but it's an expected ritual - for carpets, Berber jewellery, leather slippers, fluffy toy camels with even fluffier eyelashes, and the colourful Nabeul pottery. To get around, you can hail a horse-drawn caleche, hop on a pink petit train or call for a taxi. It couldn't be easier. The exciting new Yasmine Hammamet development with its custom-built medina and new marina is worth a visit even if you're not staying there. A gentle sophisticated spin has been put on classic Moorish style, incorporating covered-bazaar shopping arcades, blue latticed shutters and balconies, courtyard cafes and trickling fountains. Enormous fun. There's also a casino and Carthageland children's theme park.