Recife and Olinda stand within sight of each other on Brazil's Northeast coast, one city on a hilltop, the other in a river mouth, one founded by the Portuguese, the other by the Dutch.
Recife, in keeping with the commercial character of its Dutch founders, is busy, flat, efficient. Modern. Recife is the second-largest city in Brazil's Northeast, and aside from a small but pretty historical core, it's not really worth a visit, at least not in comparison with Salvador or São Luis.
Then there's Olinda. Founded by the Portuguese in 1530 on a steep hill overlooking the harbor, Olinda grew rich and proud on sugar exports. The Dutch at the time were keen to move in on the sugar business, so after trying (and failing) to take Salvador in 1624, they arrived in Pernambuco in 1630, took its capital, Olinda, and with the exception of a few churches, utterly destroyed it. In need of a capital of their own, the Dutch abandoned the ruins of Olinda, and set to work draining and diking the islands at the mouth of the harbor.
Their new city of Mauritstad quickly turned into a bustling commercial center. When the Dutch were expelled in the 1654, the Portuguese rebuilt Olinda as a matter of pride, but the center of the region had shifted. The former Dutch city was renamed Recife, after the long coral reefs that menace the harbor. By the 19th century, Recife had far outgrown Olinda; the older town was left blissfully free of development pressures, still in its largely pristine 17th-century condition.
Restoration work began on Olinda in the 1970s. In 1982 its lovingly preserved historic core was declared a UNESCO World Heritage Site. Unlike Salvador's Pelourinho, however, Olinda feels very much lived in. Walk its streets and you'll come across kids playing soccer on a patch of hard-packed dirt, women carrying groceries, perhaps artists in courtyards carving interesting-looking woodwork. The city is hilly but distances are short, and with so much to capture your attention, it's a joy to explore.
Recife has tried to follow Salvador's example by restoring its colonial downtown and promoting the area as a music and nightlife center, but its efforts haven't been as successful. Old Recife is worth a visit if you're here; it's not worth a trip in itself.
The same can be said for the beaches south of Recife. Most are beautiful -- Porto de Galinhas is gorgeous, a laid-back town with long, wide beaches, and hotels that cost but a fraction of larger resorts.