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Six kilometres south of Cabo Frio, ARRAIAL DO CABO nestles amongst more sand dunes, surrounded by hills. It's home to the Institute of Marine Research, based on Cabo Frio island 4km east of the town, whose object is to increase the level of marine life in the region. The aim is a laudable one, though it's uncertain whether the real purpose has more to do with replenishing stocks for next season's marine sports than preserving the area's ecology. The beaches around Arraial do Cabo are good: the main ones - Grande, Prainha and Pontal - can be reached on foot, while Forno can only be reached by boat from the town. You can also go by boat to the Ilha de Cabo Frio , a large unspoilt island with excellent beaches, sand dunes and superb views from its 390-metre peak. You might be interested, too, in the Manoel Camargo Centre for Popular Arts , on Avenida Liberdade, which has an excellent collection of arts and crafts on display. Arraial do Cabo is a more attractive place to stay than overdeveloped Cabo Frio, but there's little in the way of budget accommodation : try the Pousada do Suia at Rua Nilo Pecanha 57 (tel 024/622-2093; $20-35), or the Pousada Thalassa, Rua Bernardo Lenz 114 (tel 024/622-2285; $20-35), both at Praia dos Anjos, or ask at the tourist office at Praca da Bandeira (tel 024/620-5039). There's also a youth hostel ($8 per person) at Rua Joaquim Nabuco 23.
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