Cusco

Cusco was the most important Inka-city and its proximity from the important site Machu Picchu and many other archaeological sites has given it a boom within the tourist industry. Although the city is remarkably beautiful with its grand plaza and imposing churches and buildings, it is a bit sad to see the total domination of tourism; practically every building surrounding the central square is a hotel, restaurant, bar, travel agency or tourist shop. And prices are not for Peruvians. One has to walk many blocks away from the centre to find a reasonably priced place to eat.
Having said all that, Cusco was still one of the highlights of Peru.

The grand plaza of Cusco