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Palma is a thriving, working city, by no means dependent on tourism for a livelihood. Its seu or cathedral is one of the most magnificent in Spain, with a waterfront location which is very nearly as spectacular as it used to be and an awful lot drier. Other sights are the adjacent Almudaina Palace; the Gothic Llotja, exchange; the Banys Arabs, Arab Baths; and a host of interesting churches, especially Santa Eulalia and the Basilica de Sant Francesc. It is a great place for eating and drinking, offering tapas bars and both Catalan and specifically Mallorquín restaurants, and the nightlife should be enough for all but the most insomniac. For beaches, you will need to head out east to Ca'n Pastilla or S'Arenal (Playa de Palma), or west to Cala Mayor or Sant Agusti.
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