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Ubud has the reputation as the cultural capital of Bali. I certainly agree. Ubud has its own characteristic vibe entirely different from that of the rest of the islands. Ubud is a clean and trendy village with dozens of fantastic restaurants, shops, and cafes everywhere. The accomodations are affordable and stylish. The people are open and friendly. But barter hard like everywhere else. I just felt very comfortable in Ubud, which you don't get often in some of the grimy places like Kuta.
My favorite part of the town was the dining. There is a very strong restaurant culture here with many fantastic restaurants with all sorts of incredible delicasies. One restaurant I highly recommend is Devilicious. There are all sorts of activities here too, you can watch sculpture carving, live traditional dancing, and the monkey forest is right nearby. Just get out on the town and see what you discover.