Baracoa is located in a beautiful area with palm and banana trees and various cacoaplantages. It is by far the nicest place Cubans in Cuba. Stroll through the streets, eat at one of the many quiet beaches, see how local women do their laundry in the river and wonderful men sitting under a tree.
The town itself is home to the remains of an impressive system of fortifications that were built in the 18th century. Fort Matachin (now the Municipal Museum of Baracoa). Fort and Fort Punta Sanguily (now Hotel El Castillo) are worth a visit. It is a fantastic place to stay in a casa particular (Bed and Breakfast).