In August, as half of Europe heads for the coast, those left behind party in Lisbon, Paris, Amsterdam, Rome and Berlin

It’s a myth that Europe’s big cities become ghost towns in August, save for misguided tour parties of perspiring Americans. After all, not everyone wants to go to the beach and the city still needs to keep running – even Paris has a skeleton staff of locals. To keep the stay-behinds and the occasional tourists happy, most cities put on festivals or attractions, as well as encouraging the creation of city beaches where you can cool off.

Going in summer can work out better value than leaving it until later: there are fewer business travellers clogging up hotels, which means prices fall, and getting there is cheaper too, as city flights tend to cost less than resort ones (in August, Madrid is half the price of Malaga, for instance). So here is our guide to the summer – the hottest cities, the coolest hotels and the best of the fiestas.

Lisbon

Head straight for the Baixa district, where every weekend throughout August into September there are events (circus, dance, music and just plain weirdness) along Rua Augusta, in a series collectively known as the BaixAnima street festival (although it’s not so much a festival as a series of spontaneous “happenings”). And then there’s Lisbon’s long-running jazz festival, Jazz em Agosto (Jazz in August, of course), which specialises in what we might call “rough jazz” – muscular improvised music, played by some of the world’s key exponents, although not always in a key you’ll recognise (this is Ornette Coleman and Albert Ayler’s year). It’s inspiring – unless, of course, you’re after the likes of Alexander’s Ragtime Band or that hideous soporific synthesis known as smooth jazz.

The festival is already under way (it runs until August 11), but you can catch the finale this coming week if you move sharpish, with draws such as Norway’s rumbustious Crimetime Orchestra and the Quartet Noir (from Switzerland, France and the USA), as well as Ornette himself. The event, in its 23rd year, is mostly held in the beautiful grounds of the Calouste Gulbenkian Foundation. For programme, tickets and further information, call 00 351 21 782 3000 or see www.musica.gulbenkian.pt (which has pages in English).

Next weekend also sees the climax of the city’s water-themed Ocean Festival, with a spectacular nighttime parade of floats, lights and flying inflatables, which is well worth seeing. It takes place in Parque das Nações from 9.45pm until 11pm (see www.festivaldosoceanos.com ) on Saturday night (August 11).

Cool down: take one of the frequent trains west from Cais do Sodre station to the beaches of Cascais (about 40min; £1.90), where you’ll find sand, sea and plenty of fish restaurants. But it’s a popular destination and you won’t be alone – so, after a cooling ice cream at Santini (Avenida Valbom 28), reckoned to be the best in town, you might want to jump on a free hop-on, hop-off bike and cycle, or jump in a cab (£8-£10) to Guincho, where you’ll have a little more space and the Atlantic breezes will certainly chill you down. It’s very popular with wind- and kitesurfers, though swimming can be treacherous.

Stay put: the NH Liberdade (00 351-21 351 4060, www.nh-hoteles.com ), on Avenida da Liberdade, is a member of a smart Spanish-owned chain. Centrally located on a glitzy shopping street, and not far from the Calouste Gulbenkian, it comes with a small rooftop pool. Double rooms at weekends from £105, including breakfast.

Alternatively, try the small, excellent Heritage Lisboa chain (21 321 8200, www.heritage.pt ), with hotels such as As Janelas Verdes (Green Windows), a boutique hotel with a small garden, next to the National Art Museum, with rates from £120, room-only; the Avenue Liberdade; or the Hotel Britania (both from £112). Note that last-minute offers for August (see website) sometimes include a breakfast.

Getting there: airlines include British Airways (0870 850 9850, www.ba.com ), TAP (0845 601 0932, www.flytap.com ), EasyJet (www.easyjet.com ), Monarch Scheduled (0870 040 5040, www.flymonarch.com ), BMI Baby (0871 224 0224, www.bmibaby.com ) and, from Ireland, Aer Lingus (0818 365000, www.aerlingus.com ).