LATIN America is the buzz on the dinner-party chat circuit, where everyone seems to be “just back from” Bahia, Costa Rica or Panama. While a scarcity of tourist offices and direct flights to secondary cities may be hampering a tourism stampede, savvy travellers are getting there quick before it goes mainstream.

One thing is sure, more and more fabulous places to stay are opening in South America, plugging the gap between backpacker hostels and dreary Seventies international business hotels. The boutique hotel trend — which started several years ago in Costa Rica and Guatemala, where dozens of beautiful eco-lodges opened, followed by the avant-garde Explora hotels in Chile — is now hitting Brazil.

If you want to be ahead of the pack, there is one place you must go this year — Bahia (and remember you heard it here first, and if you want to be really cool, remember it’s a silent h). Those in the know are tipping this northeastern state of Brazil for paradise seekers. If you’re bored with the Maldives and are looking for unspoilt beaches, combined with a head-rush of culture and virgin rainforest, this is where to come.

Start off in Bahia’s capital Salvador, in the colonial Portuguese Pelourinho district, before moving down the coast. Anouska Hempel, of the eponymous London hotel, is designing Warapuru in Itacaré in Bahia, due to open in 2007. Meanwhile Txai, also in Itacaré (designer bungalows on a rainforest-backed beach), is making a big noise. Etnia Pousada in the fishing village of Trancoso is also receiving rave reviews (see www.i-escape.com).

But a word of warning from Lloyd Boutcher, director of Sunvil Latin America: “Latin America is still working on service. But it’s a great place for honeymooners, particularly Brazil (the north east and Búzios) and Costa Rica. Extended trips of four to six weeks are also a big trend.”

Journey Latin America’s Tim Murray-Walker says his hot tips are Guyana and Panama, which are starting to appear on more British tourists’ maps.

If you are interested in Latin America here are a few ideas from the experts:

Last Frontiers (01296 653000, www.lastfrontiers.com) has four-night B&B breaks at the Faena Hotel (www.faenahotelanduniverse.com) in Buenos Aires — a former grain silo turned Philippe Starck- style hotel — from £1,235pp. Options include day trips to the Tigre delta or Uruguay, riding and learning the tango.

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