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Aguas Calientes, Machu Picchu: Aguas calientes is the only starting point for Machu Picchu. From here the busses to Machu Picchu are leaving (20 minutes drive, 6 US$ one way). It is a city of restaurants and hotels. It has not much to offer, but from here are few trips into the surrounding are possible, e.g. hot springs and Mandor waterfall.
Hotel: we have been in Rupa Wasi Ecolodge. It is a little bit hidden and you have to climb some uncomfortable steps, but nice. Especially recommended is the big room, which has an excellent view over Aguas Calientes and in direction Machu Picchu. Good food.

Machu Picchu is a must, it is an exiting place - for us the most exiting place in the world.
Guide: Darwin Camacho (author of the recommended book: The true history of Machu Picchu)
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