Sydney, New York among the best

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Sydney, Australia, attracts tourists with beautiful scenery and a variety of cultural activities, restaurants and shops.

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(CNN) -- A city Down Under is once again on top. Sydney, Australia, was rated "World's Best City" in Travel & Leisure magazine's annual "World's Best" awards, announced in the August issue. The results are based on reader surveys.

Travel & Leisure senior editor Nathan Lump joined CNN's Bill Hemmer Thursday to reveal more of the top picks.

BILL HEMMER, CNN ANCHOR: Good morning to you.

NATHAN LUMP, TRAVEL & LEISURE: Good morning.

HEMMER: I love to talk about this travel stuff, especially from a global perspective. But on August 1, who is planning a summer trip right now?

LUMP: Actually, a lot of people... especially given how many last-minute deals there are. You know, it's been a tough time for the travel industry. So they are really trying to get bookings out, especially to close out the summer with a bang, move into the fall, which is traditionally a busier time for travel. So everybody has got deals out there.

HEMMER: All right, listen, if you say it, I'll believe it, but I'm having a tough time buying it. Nonetheless, let's go to your survey. Sydney, Australia, No.1, because?

LUMP: Well, you know, Sydney has really got it all. It's situated on one of the most beautiful harbors in the world. It's got vibrant cultural activities, great restaurants, superb shopping. One of my favorite things about it is that it's really close to nature as well.

HEMMER: Very true, you can take a boat across the harbor and go to the zoo.

LUMP: Exactly.

HEMMER: How many great world cities can you do that in? If you want to get a deal to Sydney, though, what's the best one going?

LUMP: Well, right now, there's one on a site called TravelZoo.com, and you can get round trip air fare from Los Angeles, five nights in a hotel, five days' car rental, that's just over $1,000 per person, $1,097 in fact. That's an excellent value.

HEMMER: Yes. That's down a couple of grand from where it would be normally, right?

LUMP: Exactly. And if you're not interested in packages, a lot of the airlines are continuing to run sales as well on their air fares. I saw United recently, it was just under $600 from various points in the U.S., round trip air fare to Sydney.

New York was voted best city in North America by Travel and Leisure Magazine readers.

HEMMER: OK, back here in the U.S., New York City, second year in a row, destination of choice.

LUMP: Exactly.

HEMMER: What are people saying?

LUMP: You know, really, New York, it's very gratifying to see New York do well again. It's been a tough year. Certainly, business is down in the city. What our readers love about New York is shopping -- they say it's the No. 1 city in the world for shopping -- restaurants and of course, the cultural and artistic attractions in the city.

HEMMER: The best deal going to Manhattan is what?

LUMP: Well, you know, hotels are traditionally a concern -- the high cost of hotels. Expedia has got a deal up right now. You get three nights at a hotel. The fourth night is free. And you know, included in those hotels are places like the Radisson, $119 a night, hard to beat that.

HEMMER: Yes, that's very true on that. If it's the second year in a row, last year when it was No. 1 for the first time, was that survey done before or after 9/11?

LUMP: That survey would have been done before 9/11, and this year's survey was done after 9/11.

HEMMER: OK, interesting. Best places to stay, North America, got to go over to Vancouver (Canada), the Wickaninnish Inn. That's a new one on me. Tell me about it.

LUMP: You know, some of these readers are really voting for small hotels now. People are looking for that kind of intimate experience. The Wickaninnish is a small, 34-room hotel on Vancouver's western coast, beautiful, beautiful setting perched high above the Pacific overlooking a mile-long beach. It's really all about the views there, but there is great food, great service, and it's very much a nature destination.

HEMMER: But I've got to think that's a little more than $119 a night. Am I wrong? Or is that Canadian dollars?

LUMP: No, you are right about that. In high season, rooms begin at $250, which is nothing, but we're talking about a world-class hotel. So in fact, that's actually quite a bit of value compared to some other places.

HEMMER: That is beautiful. There is a place in Quebec I want to talk about a bit later, but we're running out of time here. Quickly, a cruise right now, how popular and what kind of deals are you seeing?

LUMP: Well, cruises continue to be very, very popular in this survey, a really high percentage -- more than half -- of our respondents have taken cruises recently. And in fact, Crystal Cruises was the most popular this year. They have been every year since we began this survey. Really that's all about the comforts of a small yacht translated to big ship. And they have got some great deals going now as well, especially if you can sail this fall. Mediterranean cruises... up to 60 percent off.

HEMMER: Two for one.

LUMP: Two for one deals if you can sail now, on cruises next year. So really, there's a lot out there.

HEMMER: Yes. I love to see those things coming up the Hudson in the morning, too -- beautiful sight.

We're out of time. Best car rental company was?

LUMP: Hertz.

HEMMER: Hertz. Best island in the world voted is?

LUMP: Bali.

HEMMER: There's a shocker. Best airline?

LUMP: Midwest Express Airlines in the United States.

HEMMER: Really?

LUMP: And among foreign airlines, Singapore.

HEMMER: Very good. And the best spa?

LUMP: Golden Door in California.

HEMMER: Which part?

LUMP: Southern California, San Diego.

HEMMER: The Golden Door. I have to make a reservation.

Thank you, Nathan. Nathan Lump, senior editor at "Travel and Leisure." Thanks for taking us around the world.

LUMP: Thank you.