I live in a big city. And I LOVE it. I’m a big city girl. But the opposite attracts me most on my travels. Don’t get me wrong, I freakin loved Rio, but my heart skipped a beat when I first arrived in Arraial do Cabo, via a 3hr bus due East. The bus dropped me at the town’s tiny main square & as expected, I found no taxis waiting so I wound my way through the little streets (thank you offline google maps – an international traveler lifesaver!!!) til I arrived at my tiny little pousada where I was the only one staying. 
Side note to head off a mom question… in Brazil the place to stay are pousadas. It doesn’t have a direct translation in English but essentially it’s similar to SE Asian guesthouses, Cuban casa particulares or US B&Bs where you get a room (w a private bath if you so desire) & you have shared living amenities. However, I’ve also since found it can include lodging such as villas & small boutique hotels so the terminology has a wide span.
Lovely small towns in my travels stick out the most to me. Maybe it’s bc you get nonstop interactions w locals but also bc I think the place perhaps hasn’t quite blown up yet as far as tourism goes. In Arraial do Cabo’s case, I really feel that. Arraial gets a tiny half column mention in my Rough Guide but that’s it. I read in some random online blog that it’s the Buzios of 20 years ago (next stop). Buzios, as you may know, is famous as the best beach in the Rio de Janeiro province. So just that statement saying it may be “the next big thing” in Brazil makes me want to go. As does a couple random online articles ranking Brazil’s top beaches – 2 of Arraial do Cabo’s fall number 2 & 3 on the list. I feel as if my past experience has qualified me to be an exemplary judge of beach quality. The fact that every Rio local I asked about it told me to instead go to Buzios, only made me want to visit more. And I have to say… it’s amazing, the beaches can easily hang even with the Philippines & all expectations were exceeded. One potential downfall – it’s real quiet at night (which I think drove the party animal Rio opinions). But I don’t mind that. I exhaust myself during the day & if nothing’s going on at night, then I don’t feel guilty for being “lame” & crashing early while reading my book. Because the tourism industry hasn’t fully developed yet, there’s no “central tourist district” that’s been spit-shined & crowded w adorable restaurants & bars & shops. Those things are just a big more spread out in a tiny little town which is just fine by me. There’s also no proper big hotels as the only option to stay is in pousadas (mine was open air & lovely). If you’re looking to invest in a property in Brazil… this could be the place.
So Arraial is a town of 25k, features some of the best beaches in Brazil yet still flies under the radar. Oh yeah, it’s also considered the 2nd best dive spot in Brazil & I FINALLY took advantage of that so I was a real happy girl here. The town is quite tranquil & relaxing & a stark contrast to Rio. I loved Rio, don’t get me wrong, but this is my kinda place.