Beautiful, historic Prague, the capital of the Czech Republic, is a film-maker's dream and it takes a starring role in The Chronicles of Narnia: Prince Caspian.

Trams trundle along a cobbled street in a scene which is unmistakably 1940s London. I'm immediately caught up in a bygone era as I snatch a sneak peek at Prince Caspian, the next instalment in The Chronicles of Narnia movies.

But hang on a minute. There are no trams, let alone tramlines, in England's capital, and there haven't been since last century. Double-decker buses synonymous with ye olde England are rarely seen. Even cobblestones are tough to find these days.

These scenes from Prince Caspian were filmed a long way from London - but just a stone's throw from my hotel in the Eastern European city of Prague, where trams still take priority over cars and there are enough cobbled streets to challenge the highest of high heels.

The film makers did have to ship in a collection of buses though. Not even this beautiful city, in which time seems to have stood still, could provide them.

The first film adaptation of author C.S. Lewis' Narnia tales, The Lion, the Witch and the Wardrobe, made more than $900 million worldwide, so the sequel had to be even bigger and more spectacular. Prague's combination of skilled but cheaper labour, stunning scenery and old-world charm made it the perfect location for filming many of the key scenes in this new movie.

With its mix of Gothic spires, Baroque facades and classic architecture, Prague is a fairytale place. The city has been reborn since 1989, when it was freed from 40 years of communism, and today it's a melting pot of culture, art, old traditions and new vibrancy.

There are beautiful churches, artisan quarters, museums, smoky cafes and pubs, and the 14th-century Charles Bridge - a pedestrian-only path filled with painters and stall holders. Visitors should also take a boat trip along the Vltava River and wander up to historic Prague Castle, perched on a hill overlooking the entire city.

Across town, a new castle has been created for Prince Caspian on the backlot of Barrandov - the Czech Republic's biggest motion picture studio. Like so many of the buildings constructed under communist rule, the studio is a mass of stark, ugly offices, yet it has played host to blockbusters including Casino Royale, The Bourne Identity and Van Helsing.

Its grand Narnia set took 15 weeks and 200 men to build, and is the stunning centrepiece of the new film. Production designer Roger Ford, who worked on the first movie as well, ensured the set had the dark, almost sinister, medieval style he wanted to capture for this instalment.

From the outside, the building is an intricate network of wood scaffolding, but step through the black doors and the magnificence of the architecture makes it seem criminal that tourists won't get to see this castle in all its glory, except on the big screen.

But when in Prague, even if you can't get into the studio itself, it's worth checking which films are being made - you might get lucky and be able to do a bit of star spotting at the main gates.

The next stop on my Narnia trail was the village of Neznabohy, 90 minutes from Prague. Holiday cottages nestle in the lush countryside, and the ancient villages on the way give a glimpse of the peaceful life outside the city.

But the tranquillity was broken by blood curdling screams and the sound of sword against sword as 300 Czech extras, dressed for the film's battle scene, ran out onto a field the size of three football grounds. Surrounded by forest, the meadow - now littered with crossbows and catapult machines is the perfect location for the scene.

Producer Mark Johnson says, ‘This film is big, expensive and cumbersome, yet the people here have been friendly and welcoming. Film making here is on a par with anywhere in the world.'

It's easy to fall in love with the Czech Republic's evocative countryside. As it's bordered by Poland, Germany, Austria and Slovakia, the country has
a varied tourism industry reflected in its many attractions and sightseeing tours.

Prague is ideal for film makers who are on a budget. For the rest of us, it's a perfect mix of history, culture, opera, good food, friendly locals and great shopping - simply enchanting.

By Nikki Murfitt.

TO GO
Explore Prague for three days and nights with Trafalgar as part of their 10-day Europe at Leisure Prague, Vienna & Budapest holiday. Enjoy a guided walking tour as well as plenty of time to explore at your leisure.

You'll also visit Lednice Castle, Bohemia and Brno in the Czech Republic, beautiful Vienna in Austria and Budapest in Hungary.

The tour is priced from $2675 per person twin share, flights not included. The tour includes first-class, accommodation, travel by luxury air-conditioned coach, locally guided sightseeing, a professional multilingual tour director, welcome drinks, a hot buffet breakfast daily, a farewell dinner with wine in Budapest, some other dinners during the course of the trip, and airport transfers. Departures are available until October 10, 2008.

For more information, visit the Trafalgar Tours website at www.trafalgartours.co.nz, or contact your travel agent.

Top tips for Prague

• If you're on a budget, the good news is that St Vitus Cathedral, the most important church in the Czech Republic, recently announced that entry will be free. Situated in the Prague Castle complex, its Gothic architecture is amazing.
• Pick up some souvenirs at the outdoor Havel's Market, a popular meeting place and the largest market in Prague.
• If you're looking for unusual, inexpensive knick-knacks, artwork, leather goods or fresh produce - this is the place.
• If you are stuck, ask a policeman. They all have a basic knowledge of foreign languages, especially English.
• Make sure you take an evening boat ride on the Vltava River - it's awesome, and very romantic.