Name an australian city. Even without going to the trouble of a formal survey, we can safely bet that the vast majority of American respondents will answer “Sydney.” That glamorous city, with its stunning harbor, its Opera House, its famous coat-hanger bridge, and its frenetic business district, is a global icon. Everyone knows Sydney.

But Sydney’s preeminence is relatively recent. From the 1850s until the 1970s, it was overshadowed in political, economic, sporting and cultural significance by a city located 550 miles to the southwest, beside Port Philip Bay in the state of Victoria — a slightly old-fashioned place, rich in historic architecture and formal parks and gardens. Welcome to Melbourne.

Rivalry, you might say, is the fuel on which Australia runs. Despite its apparently genteel bearing, Melbourne (pronounce it “MEL-bun”) has always relished competition. In the early days, the city’s traders commissioned a map that misleadingly implied the quickest route to the inland goldfields was through Melbourne rather than the rival port of Geelong. As a result, Melbourne prospered during the gold boom while Geelong was bypassed and floundered.

By the end of the 19th century, “Marvelous Melbourne” was one of the jewels of the British Empire, an impressive imperial metropolis on the banks of the Yarra River. Buildings such as the State Houses of Parliament, the Town Hall, the Law Courts, the Royal Exhibition Building and Flinders Street Station provide enduring testament to that age. When the disparate states of Australia united as a Federation in 1901, Melbourne became the national capital, though Sydney protested bitterly, and in 1927, by way of a compromise, the purpose-built city of Canberra assumed the role.

In 1956, Melbourne’s place on the world stage was confirmed when it hosted the Olympic Games. From that high point, there was a gradual shift of power and global prominence. Within 20 years, Sydney had eclipsed Melbourne as Australia’s premier financial center. Dozens of major companies relocated their headquarters to Sydney, and today 60 percent of member companies of the influential Business Council of Australia are based there, while 30 percent are headquartered in Melbourne.

But the battle is far from over. Melburnians love a contest, as evidenced by the city’s continuing status as the nation’s sporting capital. Melbourne is the site of the annual Australian Tennis Open and the Formula 1 Grand Prix, while the Melbourne Cricket Ground (the MCG, or “G” for short) is well established as one of the world’s great sports venues, with seating for 100,000 spectators.

Sydney’s success has provided the impetus for a host of ambitious new projects in Melbourne, which is rapidly overturning its staid reputation. One development that typifies Melbourne’s confident new outlook is Federation Square, on the north bank of the Yarra beside Flinders Street Station. Here, several cutting-edge buildings, housing a range of cultural institutions (including the Ian Potter Centre for Australian Art, the Australian Centre for the Moving Image and a museum dedicated to horse racing), have been built around a paved plaza. Since opening in 2002, this striking public space has become a popular lunchtime gathering place.

Federation Square, with its imaginative architecture and daring use of color and texture, is indicative of the new Melbourne. This is a city that, while mindful of its proud traditions, is preparing for an exciting future. Rather than tackling Sydney on the old economic battleground, the local government’s strategy is focused on promoting emerging industries such as biotechnology, computer game development, fashion and textiles, information and communication technology, and financial services. Melbourne is already forging ahead in these sectors.

One indication that the strategy is working is the fact that the city’s current population growth, 1.3 percent each year, is almost twice that of Sydney. A 30-year development plan has been implemented, with the expectation that the total population will rise from today’s 3.6 million to almost 5 million by 2030.

Historically, Melbourne has enjoyed close ties with the United Kingdom (Queen Elizabeth II continues to be Australia’s official head of state). Yet the city has always been remarkably multicultural, and in recent decades the existing immigrant populations from Italy, Ireland, Greece and the Balkans have been joined by an influx of new arrivals from Asia.

This demographic shift is a symptom of Melbourne’s geographic position within the Asia-Pacific region. The city is beginning to capitalize on its role as a bridge between East and West, and there are ambitious plans to turn Melbourne into one of the region’s economic powerhouses. State-of-the-art communications and Australia’s only 24-hour international airport, coupled with highly competitive office occupancy costs, make Melbourne a particularly attractive proposition for businesses looking for a foothold in the Asian market.

Thanks to increasing demand, the office vacancy rate in the Central Business District has fallen to below 7 percent, and despite the planned construction of 12 new office blocks within the next three years, analysts are predicting that demand for space will outstrip supply.

The property boom is helping to transform previously neglected areas. In 1991, government agency VicUrban assumed control of the derelict Docklands area adjacent to the CBD on the north bank of the Yarra and subsequently transformed it into an evolving, trendy, mixed-use district that will ultimately be home to 20,000 people, with office space for 30,000. On July 1, the development was officially handed over to the City of Melbourne, effectively doubling the size of the CBD.

On the south bank of the Yarra, work is currently under way on the new Melbourne Convention Centre, an $830-million development that will include a 5,000-seat auditorium and a 5-star Hilton hotel, as well as retail and commercial complexes. It is due to be completed in 2009.

When you stroll along the Yarra, Melbourne’s newfound dynamism is palpable. On the river, rowers glide by in the shadows of the gleaming skyscrapers. A green and yellow tram clanks across Princes Bridge and passes between the angular flanks of Federation Square and the Victorian brick façade of Flinders Street Station — old and new, past and future, coexist seamlessly. Watch out Sydney, Melbourne is on the rise again.

LODGING

WINDSOR HOTEL

There are other 5-star hotels in town, but the Windsor — fondly known as “the Duchess” — boasts a unique pedigree. From the moment you arrive, and are greeted by the frock-coated, top-hatted doorman, you are immersed in Victorian elegance. Although it retains its classy heritage, the hotel, built in 1883, has moved unobtrusively with the times, offering all of the facilities required by modern business travelers. Packages available for the hotel’s Victorian Suites include free perks, such as landline calls to the United States, the United Kingdom and New Zealand; broadband Internet access; daily shoe shine; in-room “power breakfast;” afternoon refreshments for up to 10 people attending meetings in the suite; and limousine airport transfers. 111 Spring St., tel 61 3 9633 6000, http://www.thewindsor.com.au$$$$

HOTEL LINDRUM

A former tea warehouse, Hotel Lindrum is located within a short walk of the Yarra River and Flinders Street Station. This 59-room boutique hotel, which despite modern refurbishing retains much of its historic character, is ideally located for the CBD, Melbourne Cricket Ground, and the theater and shopping districts. Ask for a room overlooking Flinders Street to guarantee a decent view, otherwise you could find yourself with a point-blank panorama of a brick wall. That drawback aside, the Lindrum is an excellent option if you prefer a small and personal hotel. 26 Flinders St., tel 61 3 9668 1111, http://www.hotellindrum.com.au $$$

SAVILLE PARK SUITES

This 144-suite hotel, situated on the northeastern edge of the CBD, represents outstanding value for money. All of the apartments have a lounge and dining area, one or two bedrooms, a kitchen and laundry, and a private balcony — from the upper floors, the views of the city on one side, or nearby Carlton Gardens and the magnificent Royal Exhibition Building on the oth er, are breathtaking. The penthouse apartments, with their own boardrooms, are perfect venues for business meetings. The hotel is an especially good option if you’re planning to be in the city for a few weeks; competitive long stay rates are available on request. 333 Exhibition St., tel 61 3 9668 2500, http://www.savillehotelgroup.com $$

DINING

PEARL

Under the guidance of acclaimed chef Geoff Lindsay (Australia’s Chef of the Year in 2005), Pearl has become firmly established as one of the very best restaurants in Melbourne since opening in 2000. Situated in Richmond, east of the CBD, Pearl oozes casual sophistication, with its architect-designed interior. The food is a fine example of the emerging Australian cuisine, combining European technique with Asian flavors. The tasting menu takes you on a typically Melburnian gastronomic journey, starting with watermelon and feta, followed by raw kingfish with coconut cream, then duck curry with crispy fried egg and finally Turkish delight with rose petal ice cream. 631-633 Church St., Richmond, tel 61 3 9421 4599, http://www.pearlrestaurant.com.au $$$$

FIFTEEN MELBOURNE
Fine dining does not generally go hand in hand with a social conscience. But this brainchild of British celebrity chef Jamie Oliver bucks the trend. The restaurant (the latest in a chain that has branches in London, Southwest England and Amsterdam) selects and trains young people from disadvantaged backgrounds for careers in the catering industry. All profits go to fund the training scheme. Despite the worthy cause, there is no compromise on the high standard of cuisine. The menu offers Italian-inspired dishes using fresh local ingredients. The “wicked” Sicilian fisherman’s stew is especially recommended, with its bounty of the very best Victoria seafood. Basement, 115-117 Collins St., tel 61 3 8648 6000, http://www.fifteenmelbourne.com.au $$$

COLONIAL TRAMCAR RESTAURANT

It sounds like a tourist gimmick: a fleet of burgundy-painted 1920s trams trundling around the streets of Melbourne while patrons dine aboard. Yet since its modest beginnings in 1983, this has become one of the quirkiest and most enjoyable dining experiences in Australia. There are three seatings each day (lunch, 1 p.m. to 3 p.m.; early dinner, 5:45 p.m. to 7:15 p.m.; and dinner, 8:35 p.m. to 11:30 p.m.). Trams depart from Tramstop 125 on Normanby Road in South Melbourne — be there 10 minutes before departure. The menu includes Australian specialties, such as grilled kangaroo, as well as a selection of Victorian wine. Book well in advance. PO Box 372, South Melbourne, tel 61 3 9696 4000, http://www.tramrestaurant.com.au $$$

INFO TO GO

Melbourne Tullamarine International Airport (MEL) is 14 miles northwest of downtown. There is 24-hour shuttle bus service to the CBD, running every 10 to 15 minutes; prices start at $13 one way. A taxi into the city costs about $34.

Good Taste
Melbourne is the archetypal multicultural melting pot, and nowhere is that felt more keenly than in the diversity of its cuisine. Certain neighborhoods are identified with particular ethnic groups, and boast the restaurants to prove it. For great Italian food, head to Lygon Street in Carlton; for Greek, go to Lonsdale Street in the CBD (Melbourne has the largest Greek population of any city outside Greece); and for Chinese, Chinatown is the place, centered on the eastern end of Little Bourke Street. Some restaurants are licensed to sell alcohol, others are BYO — check in advance. A corkage fee (usually from $1 to $8 per head) is customarily charged for BYO.

Just the Facts

Time Zone: GMT +10
Phone Code: 61 Australia, 3 Melbourne
Entry/Exit Requirements: U.S. citizens require a passport valid for three months beyond their intended stay. Tourists require a Visitor Electronic Travel Authority, issued by your airline or travel agent. Business travelers must have a Business ETA, either short stay or long stay depending on your needs; both are available through your airline or travel agency. For the latest information, contact the Embassy of Australia in Washington, D.C., (tel 202 797 3000, http://www.austemb.org).
Currency: Australian dollar, divided into 100 cents Official Language: English
Key Industries: Retail, tourism, shipping, information and communication technology, biotechnology, aerospace.

DIVERSIONS

The easiest way to get your bearings is to head to the highest vantage point and look down. In Melbourne, that means visiting the Eureka Tower, the world’s tallest residential building, and taking the high-speed elevator to the Eureka Skydeck 88 http://www.eurekaskydeck.com.au), from where the entire city is spread beneath you like a living map; open 10 a.m. to 10 p.m., admission $14. If you have a head for heights, then it’s worth paying an extra $10 to enter The Edge, a glass cube that juts out of the Skydeck, suspended nearly 1,000 feet above the ground. Back on terra firma, you can get your historical bearings by visiting Bunjilaka (http://www.melbourne.museum.vic.gov.au), the Aboriginal center at Melbourne Museum. The displays and events at Bunjilaka celebrate the history and culture of the region’s original inhabitants. Everything changed with the arrival of the Europeans, commemorated by Cook’s Cottage (http://www.cookscottage.com.au), the original 1755 English house that was owned by the parents of the explorer Captain James Cook — the building was transported to Australia in the 1930s and was painstakingly reassembled in Fitzroy Gardens. A less quaint historic building is the Old Melbourne Gaol (http://www.nattrust.com.au), a forbidding bluestone edifice where 136 convicts were hanged, including the notorious folk hero, Ned Kelly. Some of their death masks are on display. Visit at night to tour the jail by spooky candlelight. Sports fans should take in a game at Melbourne Cricket Ground (http://www.mcg.com.au); there are regular cricket matches from November to March, while Aussie Rules Football is played from March to September. You may not understand the sports, but you’ll soon get caught up in the atmosphere.