Tai O is one of the best places in HK if you want to experience what remains of the old traditions of this town. It's a fishing village and as soon as you arrive you will be overwhelmed by dry fish. The whole village economy is based on fishing and a walk around the old alleys is a must. You will see a great variety of fish and bins of shrimp paste. You will be surprised by people living on steel houses and in stilt houses. You can also have a boat ride (25 HK dollars) to see dolphins in the open water (nowadays it is a bit difficult as dolphins are decreasing in number).
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