Kotor, located on the Montenegran riviera is a place I have very fond memories of. In the corner of "the only fjord in Southern Europe" (it's actually a submerged river canyon though), Kotor certainly doesn't lack class. With a background of limestone cliffs, it's no wonder it was used in the last Bond film.
Like all over the former Yugoslavian countries from the Croatian coast, to the Slovenian and Macedonian lakes, the Montenegran seaside has the same stunning jade colours.
These days there are almost as many Serbs living there as Montenegrans, rich Serbs noticed the possibility of a property boom and put their money into the town. Now Kotor is a bustling little town with a healthy amount of tourism but still gives off a small village feel. Restaurants are pleasant and the water is just the right temperature (unless you go in January!). There are no sandy beaches but Budva is just a few kilometres away and this town has great sandy beaches even if it is a bit of an Adriatic Las Vegas.
City walls lead 4.5km into the hillside and are topped with a chapel and a fortress where you can see down across the bay and the town of which the main building is the Cathedral of Saint Tryphon, another UNESCO building. The town is relaxed and we often had a meal after a days walking/sunbathing/swimming and bought a few bottles of wine and drank them on the city walls before heading back into the town to one of the nightclubs or taverns. If you hire a car, visit the nearby Black Lake