A very interesting and charismatic place, the mix of cultures and religions, the location in the mountains, many people speak English and they use the Latin script, voted by Lonely Planet as one of the Top 10 cities to visit in 2010 and its not expensive.
Its small enough to walk around if you can walk 5-6 km a day, there is public transport but I never used it, the steep roads are fun if you stray from the city or old town.