Richard Burton and Elizabeth Taylor's love nest, Casa Kimberley. -- Photos by Anita Draycott

Just because you haven't won the lottery doesn't mean you can't indulge in some frivolous fantasies at some of the world's best hotspots. Before John Huston's 1964 film, Night of the Iguana, Puerto Vallarta was a sleepy fishing village. Now it's one of Mexico's most glam sun destinations. Even though airports, hotels and golf courses have supplanted palm groves and jungle, Puerto Vallarta still retains its colonial charms.

Take the bone-rattling local bus (40 cents) along the steep cobblestoned streets to soak up the tastes, sounds and energy of the vibrant old town. The sun, surf and sand are free, but how do you make the most of your vacation dollars? Read on.

(All prices approximated in Canadian dollars.)

THE "YOU ONLY LIVE ONCE" SPLURGE LIST:

DAIQUIRI DICK'S

This is always my first stop on the beach strip known as Olas Altas (high waves). Start with a frozen strawberry/banana daiquiri and then tuck into the luscious lobster tacos. Finish with key lime pie and a Technicolor sunset over the Bay of Banderas. 222-0566; ddpv.com.

HACIENDA SAN ANGEL

Owner Janice Chatterton bought and renovated three traditional Vallarta homes, linking them with winding walkways and tropical gardens. The reception lounge, once the home of actor Richard Burton, looks like something from the pages of Architectural Digest. A resident chef creates breakfast, cocktails and canapes, poolside snacks and will cater private dinners. Suites start at about $190 per night. Heaven! 866-818-8342; mexicoboutiquehotels.com.

ACCESSORIZE

Fabulous jewelry from 650 designers around the world, European-made men's and women's espadrilles, sexy sandals, straw hats and ultra-chic reading sunglasses are part of the retail therapy at Viva, 274 Basilio Badillo in the heart of old Puerto Vallarta. Non-shoppers are welcome to sip cappuccino on comfy couches. Trinkets from $10 to $1500 suit all budgets; vivacollection.com.

TAMING EL TIGRE

Tethered under a bougainvillea tree beside the driving range, Nala, a Bengal tiger takes her afternoon nap. More big cats live by the 17th hole at El Tigre, a wild and wonderful course by designer Robert von Hagge in Nuevo Vallarta. Twilight green fees (after 2 p.m.) about $100; paradisemexico.com.

THE "CHEAP THRILLS" SCRIMP LIST:

A PALAPA IN YELAPA

Funky espadrilles from Viva.

Accessible primarily by panga (small boat), Yelapa provides a taste of rustic Mexico with not an all-inclusive or highrise in sight. You'll find plenty of aging hippies, artists and laid-back locals. Take a hike to the waterfall then sprawl out on the golden beach. Try a slice of pie from one of the lady vendors who balance the homemade goodies in plastic containers on their heads. Boats leave daily from Marina Vallarta, Boca de Tomatlan and Los Muertos Pier.

FREE FIESTA

Sunday at sundown is fiesta time on the malecon, Puerto Vallarta's seaside promenade. Buy a grilled corn on the cob slathered with chili/lime butter, dance with the locals in the main zocalo, Plaza de Armas and enjoy folkloric spectacles in the open-air amphitheatre with the waves as background music.

HAPPY HOUR

At the Oasis on Playa del Sol, happy hour runs from 4-6 p.m. Pull up a chair, dig your feet in the sand, swig your Corona (about $1) and chill out.

The heavenly Hacienda San Angel

LIZ AND DICK'S LOVE NEST

In 1964 Liz Taylor came to Puerto Vallarta to visit Richard Burton who was filming Night of the Iguana. Ever the romantic, Burton bought Casa Kimberley, a three-story villa with a lovely pink Venetian-style bridge for his Cleopatra. Located in Gringo Gulch in the heart of the old town, Casa Kimberley now operates as a bed and breakfast and museum filled with the stars' mementos and original furniture, including Burton's bar (once a church altar) in the games room. Tours cost $10; rooms start at $100 for two with full breakfast; casakimberley.com.