No. 11 Capri, Italy
Though this is the first year since 2002 that Capri has broken into the top 5 in Europe, this Italian island just south of Naples may be the Mediterranean at its most fabulous. There’s a serious sense of style here—designer boutiques line the traffic-free streets—and the best time to people-watch is during the nightly ritual of the passeggiata (stroll). There are simple pleasures too, like hiking the dramatic cliffs or enjoying a glass of wine at a café overlooking the Bay of Naples.