Located along the shores of Chetumal Bay, Chetumal is the capital city of the far-southeastern state of Quintana Roo. It's relatively new as Mexican cities go—it was founded in 1898 in an effort to curb the illegal trade of arms and lumber. The city's name is Mayan, meaning "where red cedar is abundant."
As you explore Chetumal, you'll find clean, pretty streets and lots of sculptures. The waterfront is a lovely spot for strolling, with cafes and even a lighthouse. If you're a shopper, try the Altamirano Market on Avenida de los Heroes (and plan on bargaining). The local museum, Museo de la Cultura Maya, and the botanical zoo are also worth visiting. The area has nice beaches, lakes and lagoons, especially the spectacular Lagoon of Seven Colors (23 mi/37 km away), where the water ranges from green to purple. Relatively good diving can be found on Banco Chinchorro, known for old shipwrecks.
About 25 mi/40 km northwest of Chetumal is the town of Bacalar, home to Bacalar Lagoon (the second-largest lagoon in Mexico) and the Spanish-built Fort San Felipe (noted for its museum of weapons and military uniforms but not always open). About 40 mi/65 km west are the Maya ruins of Kohunlich, which include a temple with giant stucco masks. Chetumal borders Belize, so you can also make day trips into that country (passport required). 185 mi/300 km southeast of Merida.