If you long to explore New Zealand’s beautiful Bay of Islands, Paihia makes a wonderful base. Known as “the Jewel of the Bay Islands,” this seaside town has golden beaches, lovely coastal walking trails and waterfalls, and a colorful population of local birds. Paihia also holds an important role in the country’s history. It was here, after a century of conflict between indigenous Maori tribes and Western settlers, that peace was finally made and the groundbreaking Treaty of Waitangi was signed.

Bubbling mineral springs and pools promise maximum relaxation in Rotorua, on New Zealand's North Island. Therapeutic hot mud pools, dramatic geysers and a buried village are within easy reach of the city. What happens in the bubbling mud geysers of "Rotovegas"—the area at the top of Fenton Street—stays in Rotovegas. Once you've made the most of the mud, soar nearly 2,000 feet on the Skyline Gondola for views of Lake Rotorua, then zip back down to explore the lake by paddle steamer, fishing charter or WWII amphibious vehicle.

Wellington boasts a compact downtown area that’s easy to explore on foot and a wealth of architectural styles, from 19th-century wooden cottages to Art Deco masterpieces. Discover the city’s Maori roots at the Museum of Wellington City & Sea and the Museum of New Zealand. Sip coffee and people-watch in lively Courtney Place, or survey the city from scenic Mount Victoria. When the sun goes down on Windy Wellington, take a nocturnal tour of Karori Wildlife Sanctuary to meet some colourful inhabitants.

Staggering beauty and heart-pumping thrills await in the resort town of Queenstown, which is also known for its Hobbits—much of the Lord of the Rings trilogy was filmed in the area. Outdoor enthusiasts flock to Queenstown for the kayaking, bungee jumping, jetboating, white-water rafting, hiking and skiing. More mild-mannered adventurers can take a quiet cruise through nearby Milford Sound, part of the Fjordland National Park World Heritage area, or sample South Island pinot noir from one of the region's 75 wineries.

Rare yellow-eyed penguins, fur seals and the world's only mainland albatross colony share residence in Dunedin, New Zealand's oldest city. When you're not watching wildlife, this South Island Otago Coast town also boasts impressive historic architecture from its days as a gold-rush mecca. Visit the 1906 Flemish Renaissance railway station or the country's largest center of higher learning, which resembles Glasgow University, thanks to the area's early Scottish settlers.

City slickers, culture vultures and beach bums alike fall in love with Sydney. Hang ten at famed Bondi Beach or stroll the calmer sands of Coogee.  Cash burning a hole in your pocket? You’ll find great shopping in the Rocks district and along George and Pitt Streets. Climb to the top of the Harbour Bridge or take a skywalk on Sydney Tower for a 360-degree view of the city. But whatever you do, don’t leave town without cuddling the koalas in the Taronga Park Zoo—they’re ridiculously adorable.