Concierge.com's insider take:
In the hills to the west of Capri Town, this village sits in idyllic seclusion—though these days, it's also lined with shops aimed at the tourists who are bused in here to buy sandals, coral, and other gewgaws.
One of the best ways to get a sense of the island's dramatic landscape is to spend 12 minutes on the chairlift that whisks you up from the central piazza to just below the peak of Monte Solaro for jaw-dropping views from just over 1,900 feet above sea level (10 Via Caposcuro; 39-081-837-1428). There's a snack bar and several trailheads up top (the prettiest leads to the hermitage of Santa Maria a Cetrella), but the fern and gorse afford little shade, so pack a hat. Those with energy to spare can walk back down via the La Crocetta pass in around 30 minutes. Another good walk starts just to the left of the chairlift station down in Anacapri and leads south on Via Migliera through an increasingly rural landscape to the panoramic viewpoint of Migliera in around 40 minutes. Time the walk for lunch or dinner, and you can eat at the delightful Gelsomina.
A must-see attraction in Anacapri is Villa San Michele. Another worthwhile stopover is the church of San Michele Arcangelo (Piazza San Nicola), which has a delightful majolica (ceramic-tile mosaic) floor from 1761 depicting the Garden of Eden, complete with camels and crocodiles. The more athletically inclined can trek up—or down—the Scala Fenicia (Phoenician Stairs), whose 1,000 steps were once the only way to get from the Anacapri harbor to the Marina Grande.—Updated by Lee Marshall