Nerja is the main tourist resort on the eastern part of the Costa del Sol. This former fishing village is arguably one of the coast's most attractive towns, with pleasant streets of whitewashed houses. Unlike many towns to the west of Malaga, Nerja has managed to avoid the high-rise development which is seen in those resorts. Nerja lies in a valley, with picturesque rocky coves overlooked by small cliffs. It takes its name for the old Arabic word 'naricha' meaning 'rich in water'.

The main attraction within the town is the Balcon de Europa from which there are superb views along the coast. Named by King Alfonso XII, who visited Nerja in 1884 after the town was hit by a devastating earthquake, this is an attractive tree-lined promenade which extends on to a rocky promontory. Next to the Balcon de Europa is the Mudejar-style church of El Salvador, built during the 17th century. The church is notable for its bell tower and interior which is decorated by 18th century frescoes.

One of the biggest attractions on the Costa del Sol is the Nerja Caves, around 2.5 miles (4km) east of the town. Discovered by chance by a group of boys in 1959, the caves consist of a series of huge limestone caverns formed during the Triassic Period, around five million years ago. The 32-metre high central column in the Catalcysm Hall is the largest of its type in the world. Paintings of goats, deer and horses found within the caves are thought to date back around 20,000 years, although sadly these can not be viewed by the public.

Nerja is a good base for exploring inland. Just four miles (7km) up in the hills to the north is Frigiliana, one of the prettiest villages in the relatively undeveloped La Axarquia region, notable for its beautiful scenery. To the east of Nerja is the village of Maro which clings to a cliff top overlooking a pretty cove.

There are plenty of activities to enjoy in Nerja, including fishing, scuba diving, canoeing, horse riding, mountain biking, jeep tours and quad biking. Ask at the Nerja Tourist Office in calle Puerta del Mar (close to the Balcon de Europa) for information.

Nerja holds several spectacular street festivals throughout the year. The Fiesta de San Anton in mid-January is marked by fireworks and processions through Maro village, while the inhabitants of Nerja dance around hand-made crosses decorated with flowers during the Cruces de May (3rd May). Also taking place in May is the colourful Romeria San Isidro, which features processions of horses. One of the most important events in the town's calendar is the famous Festival Cueva Nerja, which consists of a series of classical and flamenco performances held in one of the giant caverns of the Nerja Caves.

Nerja is about 30 miles (50km) east of Malaga. Alsina Graells runs a regular bus service between Malaga and Nerja. There are also regular buses from Nerja to the village of Frigiliana and the nearby resorts of Velez-Malaga and Torre del Mar.