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The most enjoyable way to explore Bruges is to walk. The city centre is very compact - and flat - and all the major attractions are located within the circle of boulevards that mark the line of the old city walls.
Cycling around the city is also popular (although the cobbles mean it's not exactly a smooth ride) with cycle lanes on many of the roads, and cycle racks dotted across the centre. Canal cruises are a fun way to get your bearings when you first arrive, and you can also take a horse-drawn carriage ride from Markt Square.