Monaco is actually smaller than Hyde Park, even after the addition of 31 hectares reclaimed from the sea, yet it would be the brightest jewel in any crown. From my balcony at the Hôtel de Paris I looked down on the Lady Moura, the ocean-going yacht of King Fahd of Saudi Arabia, manoeuvring in the harbour like a giant model on a boating pond. Here is the playground of the rich and famous.

Affording the pleasures of the place would be easier, no doubt, if one could emulate Joseph Jaggers in 1873 or Charles Deville Wells in 1891, two rival claimants to have been the original “man who broke the bank at Monte Carlo”. But be warned: both the legendary big winners are reckoned to have lost the lot in attempts to repeat the feat.

Significantly Monegasques are not allowed in the casino. The wise prince who inaugurated it had no desire to see his own citizens stripped of their assets, a privilege he reserved for foreigners.

Still, you don’t have to play to appreciate the excitement of the gaming rooms, or to marvel at the characters they attract. There is more charm in the (free) front foyer exhibition of fascinating historic gaming machines and arcade amusements, none of which takes money any longer.

WHAT ELSE?

The shopping: it is easier to buy a diamond bangle or haute couture gladrags in Monte Carlo than a sausage or a piece of cheese. Fred, Chopard, Cartier, Chaumet, Bulgari, Van Cleef & Arpels and Repossi (jewellers by appointment to His Serene Highness The Sovereign of Monaco) are all there, no problem, along with Christian Dior, Lanvin, Valentino, Ferragamo, Gucci, Hermès, Prada and Louis Vuitton. And don’t forget the Monaco Grand Prix on May 23.

WHERE TO STAY?

The best hotel is the Hôtel de Paris (00 377 92 16 3000, www.montecarloresort.com), but its owners are also refurbishing and adding to its rambling neighbour the Hermitage. For something more contemporary the Port Palace (97 97 9000, www.portpalace.com), which opened last September, is built right on the quay. The long-neglected Hôtel Metropole (93 15 1515, www.metropole.mc) reopens as a 146-roomer in May after complete renovation and refurbishment.

FOOD AND FUN

Monaco is home of the destination restaurant, which sets the three-star standards by which the whole of France is judged. The Louis XV, the grandiose Third Empire dining room at the Hôtel de Paris, served as launchpad to gastronomic stardom for Alain Ducasse, France’s present chef supreme.

I ate there the day Restaurant magazine announced that this was the third-best restaurant in the world. The meal was as memorable for the quality of ingredients (plump, fresh asparagus, prime morels, luscious lobster, tender milk-fed lamb) as the exactitude of the cookery.

Now, though, Monaco is to have a rival, and more affordable, gastronomic attraction. The Hôtel Métropole reopens in May with a restaurant headed by Joël Robuchon, Ducasse’s predecessor as head honcho of la cuisine française. Robuchon promises not a three-star gastronomic palace but “an informal restaurant where you might eat several times a week”. Yummy.

NEED TO KNOW

Robin Young travelled with British Airways and The Mediterranean Experience (020-7630 6047, www.themed.net), staying at the Hôtel de Paris, where a two-night break costs from £326pp. Further information: Monaco Government Tourist and Convention Office (020-7352 9962, www.monaco-tourisme.com).

Times recommends

• Same flight + different airline code = £225 out of pocket
• The UK and Ireland's 25 best Christmas events
• Book 2010's best holidays now