Panarea

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Panarea is the smallest inhabited island of the Aeolian Islands, a volcanic group north of Sicily in Italy. It belongs to Lipari and covers 3.4 square kilometers. The highest point is Punta del Corvo at 421 meters. About 280 people live there year-round, but many more visit in July and August for holidays. The island is famous for attracting celebrity visitors.

Panarea sits in an active volcanic area and is surrounded by several tiny islets that you can reach only by boat. Nearby islets include Basiluzzo, Spinazzola, Pietra Nave, Dattilo, Lisca Bianca and Bottaro, Lisca Nera, and Le Formiche. In ancient times the island was known as Euonymos, and Basiluzzo was called Hycesia.

Evidence shows Greek settlement around 1200 BCE, followed by Romans. After Western Roman Empire raids, life on the island declined. Today Panarea is a fashionable vacation spot. The Aeolian Islands were named a UNESCO World Heritage Site in 2000, which means development is tightly controlled. Most homes are for short stays, and the few year-round houses are expensive. There are thermal springs near Punta di Peppe e Maria, and scuba diving is popular, with the option to swim to a shipwreck between Lisca Bianca and Bottaro.