

The capital of the State of Pernambuco, Recife , became an important city during the Dutch occupation (1631-1654), as it was the capital of their colony New Holland. Today Recife is a modern city, with more then 1, 5 million inhabitants and it is the economical heart of the State of Pernambuco. Despite all (relatively) recent developments, Recife maintains a rich traditional side, with some of Brazil 's best folk art, including painting and sculpture, dance, music and festivals. Olinda is Recife 's sister city, less then 10 km away, the two are separated by swamps and a river. Both cities are generally considered as one destination. Olinda is one of the best preserved colonial cities in Brazil, placed on a hill overlooking Recife and the Atlantic Ocean. "Climbing" through Olinda 's winding streets is like stepping back into the 17th century. The city boasts and enormous amount of colonial buildings and churches. Olinda was founded in 1537 as the capital of the then province of Pernambuco. During the Dutch occupation (1630-1654) of North East Brazil the whole city was burnt down and Recife was installed as the new capital of Pernambuco. Recife became the economic heart of the region, with offices and modern buildings. Olinda nowadays is an important cultural centre, with a high concentration of artists.
Olinda's carnival is world famous; thousands of visitors are attracted by its dancing crowds in the historical streets on Frevo music. Olinda has featured on the UNESCO world heritage list since 1982 and a series of serious restoration works of the historical buildings have been carried out since that time. Olinda is easily explored on foot, as the city is not very big, however, one should be prepared for steep up- and downhill walks.
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