In the middle of the 19th century, Italians who came over the Alps from Cervinia were amazed to find a modest village of sleepy alleys, sturdy cabins and wooden storage barns on the other side of "their" mountains. The citizens of Zermatt were equally surprised - and promptly closed their doors and shutters in fear.

Today, the welcome is far more cordial - and international. Zermatt's a world center for mountain biking, hiking, paragliding and year-round skiing. To support tourism, the town has 116 hotels and boarding houses with 6,800 beds (plus another 1,500 holiday apartments with 6,500 beds), 38 mountain restaurants, 10 aerial cableways, one underground railway, the highest cable car in Europe, and 80 certified mountain guides. Not bad for a town with only 5,600 residents.

Beyond its lofty recreation options, Zermatt is just plain scenic. The aquamarine Mattervispa River carries frigid glacial melt through town, gurgling over rocks pulled from the moraine. On all sides, massive mountains loom in full majesty. Indeed, 29 of Switzerland's 35 peaks higher than 4,000-meters (13,120-feet) are in the Zermatt region. Century-old huts stand on stone, mushroom-shaped stilts (they keep the rats out) and promise to outlast the most modern construction.

Hiking is easily the primary outdoor summer activity. Visitors follow maps and well-marked trails. Some join tours or hire guides. Popular outings include a three-hour expedition along a snowy ridge from the Klein Matterhorn to the Breithorn for CHF 135. A four-hour glacier excursion costs about CHF 110.

Zermatt seems far more laid-back than most mountain resorts. People of all ages are dressed for their activity of choice, not to make a fashion or net-worth statement. Since everyone walks in this auto-free town, there's more social interaction on the streets. Most everyone is relaxed and smiling as they stroll the town. Even the new Casino Zermatt, which opened in December, doesn't have a dress code.

From the base stations, an extensive network of 31 lifts carries visitors to a variety of peaks, lookouts and trailheads. The Klein Matterhorn and Rothorn base stations are served by lifts, while the Gornergrat features a funicular railway. Anyone who visited in the past and was confused by the multiple offers of Zermatt's several cable car companies will be pleased to learn that the four companies merged last year. There's one timetable, one rate chart, one website and, significantly, one company issuing tickets.

This cooperation helped create the new Peak Pass, which offers unlimited travel for stays from 3-21 days, a best bet for visitors who plan to log extended mountain time. A three-day pass, for example, is CHF 154 and a five-day pass CHF 200. Or choose any three days during a five-day visit for CHF 170. Children from 6-16 are half-price.

A highlight of any visit is the Klein Matterhorn, at 3,883 meters (12,736-feet) the highest peak served by the region's cable cars and the highest viewing platform in Europe. ("High Alpine Zone. Move Slowly," signs warn.) At the summit station, it's another three minutes on foot through a tunnel that emerges to bright sunshine and deep snow.

A short walk across the snow leads to another tunnel, this one carved into the glacier. Exhibits explain glaciers and geology en route to an almost magical grotto 15 meters (49 feet) below the surface with ice sculptures carved from giant blocks.

Then it's outside again to a view that almost overwhelms: mountains to the horizon, their peaks reaching into a rich, blue sky.