Having spent 1,500 years as the capital of three empires, Istanbul hardly needs reminding that it's a major cultural centre. However, that hasn't dampened enthusiasm for the city being designated European Capital of Culture in 2010. Despite the global crisis, business confidence is still riding high and preparations for next year are moving ahead. Ongoing is the restoration of the Molla Zeyrek Mosque — formerly the 12th-century Byzantine church of the Pantokrator and a host of other historical buildings, with a slate of exhibitions and congresses timetabled for next year.

RECHARGE Thankfully the days when visitors were forced to choose either bland business-class branded, or down-at-heel tourist value are over, with chic boutique hotels springing up all over the city. Istanbul's recent surge in popularity for incentive tours and weekend breaks with European visitors, and for shopping splurges with Arabic visitors means that hotels are more pricey than other parts of Turkey. Classiest by far — not to mention one of the priciest – is the Four Seasons Hotel Istanbul at Sultanahmet. Not many hotels can offer a location as central to Istanbul's historic Byzantine and Ottoman capital, and only the Four Seasons boast a former life as a 19th century prison — albeit one restored to a level of opulence its former residents could never have dreamed of. The 65 rooms and suites, which are tastefully decorated in traditional Turkish themes are ranged around a central courtyard, with outer windows offering views over the sea and up to the nearby main tourist attractions of Hagia Sophia and Topkapı Palace. Tucked away underground are the hotel's surprisingly ample conference facilities and a full on spa and wellness centre. For something more work-oriented The Sofa Hotel and Residences in the swish uptown district of Tesvikiye is aimed directly at the discerning business traveller. Rooms offer cutting-edge design and last word in luxury, while the hotel also boasts five meeting rooms and a terrace reception area capable of holding up to 300 people, as well as a Taylife detox and wellness centre, offering detox treatments and spa and massage therapies.

Or if you're bored with hotels, why not try an apartment in Istanbul's historical Galata district. Local company istanbulsweethome.com has ten flats to let, all kitted out to a very high standard, and most with views over the water to the Topkapı Palace and Hagia Sophia. Prices vary according to length of stay and time of year and offer excellent value, but early booking is recommended.

REFUEL While for years the rich variety of Turkish cuisine stalled interest in international flavours, the past decade has seen the city come to embrace every cuisine imaginable. For a cheap traditional fill you can't beat the kebab stands on Taksim Square, while the nearby Hacı Abdullah at 9 Atıf Yılmaz Caddesi is one of the best places in town for a full on Ottoman spread.

Arguably best of the new wave is the distinctly top-notch Changa at 47 Sıraselviler Caddesi, which regularly wins international awards for its Turkish flavoured fusion. More affordable but no less spectacular is 360 at 311 Istiklal Caddesi. Named after its stupendous views, 360 is equally renowned for its menu, which covers everything from classic to fusion, with frequent nods to local, as for its excellent service.

RELAX For a relaxing escape from the frenzy of Istanbul there's nothing better than a day on the Princes' Islands. Ferries (ido.com.tr) depart roughly every hour and a half from Kabatas, taking 50 minutes to reach the first of the four islands, Kınalıada, and a further 45 minutes to reach the final and largest of the group, Büyükada. Home to early Christian monasteries and a place of exile for deposed Byzantine emperors, in the 19th century they became a popular summer retreat for rich families from Istanbul's minorities, who built churches, synagogues and beautiful wooden mansions. Still today you'll hear people speaking Greek, Armenian and the ‘Ladino' dialect of Old Spanish that is spoken by many of the city's Jewish community.

With motor vehicles banned, transport is by horse drawn phaeton, or bicycles, which are available for rent. Or you could just opt to walk. Swimming is possible from private and public beaches, and there are hilltop churches and monasteries to visit, some offering locally made wine. But make sure you don't miss the last ferry back — hotels are few, and generally full.

My Istanbul – Didem Engin, 32, politician and owner of Renova consultancy

Best and worst things about living in Istanbul 

Best: The Bosphorus, the mosques, churches, synagogues, and other historical monuments Worst: Lack of care by city administrations which has caused uncontrolled expansion, pollution, traffic problems and the deterioration of the city's cultural and historical heritage.

Best way to get around Ferries — they offer the best views and time to relax.

Secret place There is something in each street of Istanbul. Each part of the city has a story.

Best place to exercise Jogging on the seaside along the Bosphorus, early in the morning, listening to birds and admiring the view.

Best place to relax Watching the sunrise and sunset on the shore.

Best place to refuel Maiden's Tower Restaurant

Most inspirational building The Byzantine Cathedral of Hagia Sophia

Best tip Take a ferry. Admire the evening view over Topkapı Palace from Galata Bridge.

Worth noting Bear in mind the traffic and wherever you're going, leave early

My Istanbul – Melis Kobal, 27, financial journalist

Best and worst things about living in Istanbul

Best: Its exotic historical heritage. Worst: The traffic. You can never predict how long a journey will take.

Best way to get around On motorbike or moped you can escape the traffic and park anywhere.

Secret place The Sakıp Sabancı Museum at Emirgan has a beautiful garden and a great café.

Best place to exercise For walking and cycling you can't beat the stretch of Bosphorus shore between Arnavutköy and Rumelihisarı.

Best place to relax A Turkish bath. Les Ottomans Hotel offers a hammam therapy or for a more traditional style, try Galatasaray hammam.

Best place to refuel Breakfast: Assk Café at KuruÇesme on the Bosphorus. Lunch: Bebek BalıkÇisı at Bebek. Dinner: Angelique in Ortakoy.

Most inspirational building Galata Mevlevihanesi — Istanbul home of the Whirling Dervishes.

Best tip The nightclubs on the Bosphorus.

Worth noting Istanbul Museum of Modern Art It's a window on Turkey's contribution to the visual arts, and has a great terrace café.

My Istanbul – Seref Ozen, 42, antique textile dealer

Best and worst things about living in Istanbul

Best: A walk along Bosphorus Worst: The traffic!

Best way to get around Trams and ferries

Secret place The Rüstem Pasha Mosque

Best place to exercise I don't indulge

Best place to relax The biggest of the Princes' Islands – Büyükada

Best place to refuel BalıkÇı Sabahattin restaurant — 82 years old and still going strong, or the newly opened Jazzu

Most inspirational building Hagia Sophia

Best tip Afternoon tea at the Pierre Loti café on the hilltop at Eyüp

Worth noting Check out the 10th-century finds from the Yenikapı metro excavation that are being exhibited in the Archaeological Museum.

On The Map: Cold Turkey

Istanbul isn't the first place you'd expect to find a company promoting raw vegan food, healthy living and alternative therapy. But if any Turkish business success story symbolises the rapid change the country is undergoing it's that of Ersin Pamuksüzer founder of The LifeCo, an Istanbul-based company operating a growing chain of detox therapy centres and raw food restaurants.

As head of Ericsson's Turkey subsidiary and as a founder and board member of Turkcell – Europe's third biggest GSM operator, Pamuksüzer spent over a decade among Istanbul's business elite before an encounter with detox therapy persuaded him to make a radical career switch.

He opened his first 24-room detox facility among the orange groves at the swisher end of Turkey's popular holiday resort of Bodrum. So successful was the venture that he brought the concept back to Istanbul, with the city's first raw food restaurant, Saf, and an attached walk-in spa and day detox centre — located uptown in the city's high-end suburbs. Saf also now has a London branch.

Now Pamuksüzer is working on his most ambitious project — a new €14m ‘anti-ageing' centre to be opened early next year at a golfing resort just outside Istanbul.

Going one step further than healthy living, the new centre aims to provide diagnostics and early stage treatments to help customers address lifestyle problems such as obesity and unhealthy living that could lead to serious illness in later life.

Although not yet open, Pamuksüzer is already in talks to export both the model and his Istanbul born The LifeCo brand to Egypt and Korea.

A far cry from mobile phones? Not so says Pamuksüzer, noting that when the first GSM operators began rolling out their networks nobody imagined pocket phones would become as ubiquitous as they are today. Healthy living may be a harder sell he concedes, but, he points out, the potential market is no less enormous.