Nyaung Shwe is the gateway town for those travelling onto Inle Lake. Despite being a tourist hub with a number of guesthouses and restaurants, the town is still a busy trading post for the villages on the lake. Located at the northern end of the lake, the town was once the capital of an important Shan kingdom (the former palace of the saophas (sky princes), who ruled here is now a museum). These days, Nyaungshwe has become a bustling travellers' centre, with dozens of guesthouses and hotels, an increasing number of restaurants, a few bars and a pleasantly relaxed vibe. If Myanmar can be said to have a backpacker scene at all, it can be found here.