Luxembourg may be a tiny country, but it has rich culture and an interesting history. Luxembourg city is itself a Unesco World Heritage site and the hostel is located right in the Latin Quarter.
Local Language: In Luxembourg, the people speak their own sort of dialect - A mixture of German, French, and Dutch. Most people speak English however (or French/German/Dutch) and so you shouldn't have much trouble communicating.
Visa Requirements: Canadians are allowed in Luxembourg for 90 days without a visa.
Health Risks: None
Costs: Luxembourg is one of the richest countries for it's size - And as a result it can be quite costly. Budget a good $40 Canadian per day you spend in Luxembourg. Outside of Luxembourg City, prices will drop a bit.
I've been to Luxembourg a few times, and have travelled through it even more. Chance are if you're Traveling around the Low Countries and western Germany, you'll have to cross through it at some point.
Luxembourg is one of the smallest countries in Europe, and while it has many small quaint villages, Luxembourg City is the heart of this tiny country. Luxembourg City has one of the best preserved old town's in Europe, with city walls and a castle overlooking old Luxembourg nestled in a valley. The old town itself has been declared a UNESCO world heritage site.
Luxembourg is also an easy country to get around in. It's well connected by train and bus, and is also well connected to the surrounding countries.
If you get a chance, be sure to check out Luxembourg and the surrounding villages. It'll be worth your while, and staying at the hostel in the old town can't be beat for location.
The main hostel in Luxembourg is located right in the Latin Quarter, the old town. You can take a bus direct from the train station, or walk all the way down the hill. Luxembourg also has several hotels, though they of course can get expensive. You may want to make reservations in the high season.
For hotels in Luxembourg, check out the links below:
Hostels in Luxembourg
Hostels in Troisvierges
Hotels in Luxembourg
Book hotel in Luxembourg
Luxembourg City is very well connected, and you shouldn't have trouble getting their from France, Germany, or any of the other Low Countries (Belgium and the Netherlands). From the train station you can take a bus to wherever you need to go in Luxembourg CIty. Luxembourg is also covered by a Eurail pass, so making a quick stop on your way through the other Low Countries doesn't hurt.
Cheap Train and Eurail Passes
French has a lot of similarities to English. For example, while it might be hard to understand what people are saying, if you picked up a French newspaper you could probably get the general idea of the article you're reading. I knew a few guys who simply spoke English with an exaggerated French accent and somehow managed to get by like that! Luxembourg however doesn't cater to English speaking tourists as much as other European countries. Therefore, I definitely recommend familiarizing yourself with some of the basics of the language.
Canuck Abroad's French Travel Dictionary
Canuck Abroad's Dutch Dictionary
Canuck Abroad's German Dictionary

Luxembourg's UNESCO World Heritage Latin Quarter
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