The zocalo is the lively city center in Oaxaca, Mexico. (Michael Martinez / San Jose Mercury News)

OAXACA, Mexico -- The zocalo of this colonial city looked exactly as I remembered it. Broad, inviting shade trees. Musicians playing mariachi or marimba. Strings of colored bulbs lighting up the night. Women balancing trays of fruit drinks on their heads, looking for thirsty buyers. And lots of townsfolk and tourists.

The last time I visited here, almost five years ago, my afternoons were often spent at the zocalo -- the communal center of most Mexican cities -- watching people come and go, or children play, or couples snuggle on a park bench. Everyone mingles easily here, filling the square from dawn until well past dusk.

But Oaxaca is still wobbling from a troublesome 2006. Tourism is down. Hotel rooms are empty. Some businesses have closed. The city's tourist-based economy is still reeling from a violent political protest last year that shut down the zocalo and put parts of the town under siege for several months.

Everything is peaceful now, but travelers have been reluctant to return. The Oaxaca Tourism Office reports that the number of visitors fell by 58 percent over the last six months of 2006 compared with the same period for 2005. And although tourism is trickling back, it has yet to return to normal.

Martha Canseco, director of the Becari Language School, where I attended Spanish classes for three weeks in 2003, said the city has its luster back. "It's beautiful, as always," she said, "and there are good prices in the hotels and restaurants."

Indeed, Oaxaca, a city of 258,000 located about an hour's flight southeast of Mexico City, continues to be alluring and pristine -- a mix of cultures and colors unlike anywhere else in Mexico. If you listen closely, you can hear dialects spoken by some of the 16 indigenous groups found in the state of Oaxaca (both the city and state share the same name), making it the most ethnically diverse region of the country.

Throughout the center of town, shops are filled with woven rugs, silver and gold jewelry, ceramics and unique folk art such as alebrijes (meticulously carved and painted figurines) and barro negro (shiny black pottery). Many storefronts and homes are painted in bright, lustrous colors.

The public markets are hives of nonstop activity where you can buy fresh meat, shoes, pottery, tamales, baskets and the Oaxacan delicacy known as chapulines -- fried grasshoppers seasoned with salt and chili powder and eaten either au natural or in a tortilla. Women stand behind counters and wave menus featuring tacos, tamales, chilaquiles and hot soup.

Along the dusty, narrow streets, small stores sell CDs, beaded necklaces, candy and T-shirts. Buses, many headed for beach towns such as Puerto Escondido or Puerto Angel, go roaring by every afternoon and evening.

There is no residue of the civil unrest that shook the city from May until November last year. A protest that began as an annual teachers' strike over wages and working conditions exploded into a clash between police and left-wing activists intent on removing the state governor from office. As many as a dozen people were killed, including one American who was shot while filming a demonstration. Federal police were finally called in to quell the violence.

Walking around the zocalo, with its freshly planted flower beds and gurgling fountains, I found it difficult to believe any of this had happened. Police presence was minimal. At night, the city was serene and safe. People were friendly, welcoming.

"In my town, even the dogs wag their tails," said Judith Reyes Lopez, who owns the Ollin Bed and Breakfast, a 10-minute walk from the zocalo, with her husband, American-born Jon McKinley.

Recovery, however, has been slow. McKinley said occupancy at their 11-room B&B is down overall but is showing signs of revival. They enjoyed a good August, their best month in more than a year.

Other properties are still struggling. Several B&B owners, who formed an association to market themselves in the wake of the protests www.oaxacabedandbreakfast.org), say occupancy is less than 10 percent since October 2006. And language schools suffered a large enrollment drop that has yet to return to normal, said Canseco of Becari.

One school, Amigos del Sol, was unable to pay its monthly rent and had to relocate to a smaller facility. Becari couldn't pay rent for four months, Canseco said, but the landlord allowed the school to remain at its current location.

She's employing eight instructors instead of the 12 to 15 she usually has teaching classes. And although there were 21 students enrolled during my visit, 18 of them were supposed to attend last year but canceled because of the violence.

"Next year, we're going to see better results," Canseco said. "Even now, people are starting to ask about Oaxaca. But if something else happens, it will take years."

To attract visitors, the B&B association will host a seven-day cooking-school experience in March at a cost of $735 per person. It includes classes, dinners, tours and lectures. Discounts are available at member B&Bs, and some language schools are offering 20 percent discounts for participants who want to come early or extend their stay www.aseseo.com.mx).

You can find great hotel rates even now. I paid $65 a night at the Ollin B&B and about $59 at La Reja Hospederia -- two small, nicely appointed properties with garden patios and friendly staffs. Breakfast is included at both. Dining at most restaurants is inexpensive, something that hasn't changed since my first trip.

Tourists are showing up -- mainly from France and Germany, it appears -- although there aren't a lot of them. The few Americans I met, though, seemed undeterred -- as long as things stayed calm.

"I wouldn't have come if there was any fighting going on," said Aaron Semer, a graduate student from Seattle who was studying at Amigos del Sol. "But the presence of protesters wouldn't bother me. From everything I heard, things had stabilized."

Still, there are warnings. The U.S. State Department recently was advising travelers on its Web site www.travel.state.gov) to check on current conditions before traveling to Oaxaca. Two German travelers I met, Simon and Christina Kramer of Nuremberg, said they found a similar advisory on the German government's travel site.

"It said that we should be careful, that there might be demonstrations and the center of the town might be closed," Simon said.

"We were a little bit afraid," Christina said, "but we felt that it was a Mexican problem, and not a problem for tourists. The atmosphere, the cafes, the zocalo -- it has been very easy, like a Mediterranean city."

In fact, some residents maintain that even during the worst of the troubles last year, Oaxaca was always safe to visit.

"I have never advised people not to come down," said Jack Corbett, a professor of public administration at Portland (Ore.) State University who lives part time in Oaxaca. "Even at the height of the unrest, it was a matter of being attentive and prudent. At any given time, it was perfectly peaceful."

That's debatable. Gerardo Pinelo, in whose home I stayed during my first visit, said it was "very, very dangerous, especially around the zocalo." Canseco said she closed her school on days when there were large demonstrations.

"At times, I felt like I was living in a movie," she said. "We were sad to see what was happening to our city and our people. We were scared."

Those fears are gone now. Every day, the zocalo was filled with music. Every night, diners sat at outdoor tables drinking and eating. Children played well past dark. Young people filled dance clubs and coffee houses.

It was just as I had left it, as if nothing had changed. But Oaxaca longs for tourists.

"Everybody is hungry for business," Jon McKinley said. "The only thing that will help is people."

Want to go?

OAXACA ACTIVITIES:

-- Monte Alban, just a few miles from the city, is a former Zapotec capital that dates to 500 B.C. Climb to the top of a multitiered temple and admire your surroundings -- a large plaza, a ball court, altars and numerous stone carvings over a 2 1/2-mile area. If you can't get enough, two smaller sites, Mitla and Yagul, are east of Oaxaca.

-- Alebrijes, small wooden figures usually carved in the shapes of animals such as wolves, cats and armadillos, are plentiful in the city. But if you visit the pueblos of San Martin Tilcajete and San Antonio Arrazola, south of Oaxaca, you can meet the artists and watch them work. Prices are cheaper, too.

-- North of San Martin is the town of San Bartolo Coyotepec, the only place where barro negro, a shiny black pottery, is created. The process was originated by Dona Rosa Real Mateo and passed on to her son, who still shapes the pots and vases by hand (although many families now produce barro negro). That shiny exterior that distinguishes them? It comes from rubbing quartz on the hardened surface.

-- Teotitlan del Valle, about 15 miles east of Oaxaca, is where you'll find rugs made on large looms and colored with natural dyes from alfalfa, moss, tree bark and the indigo plant. The town is filled with rug shops -- like alebrijes and barro negro, they're typically family ventures -- but look for a place that offers demonstrations explaining the process.

-- Oaxaca is a favorite destination for language and cooking schools. Most allow you to combine study with tours to the towns mentioned above, and they can also arrange housing. The Spanish Schools Association of Oaxaca www.aseseo.com.mx) has listings of six schools in the city center.

-- Among the more popular cooking schools is Susan Trilling's Seasons of My Heart www.seasonsofmyheart.com) outside the city. Others include Casa Crespo www.casacrespo.com) and Casa de los Sabores www.laolla.com.mx), both within the city limits.

LODGING: Ollin Bed and Breakfast, Calle Quintana Roo 213, has 11 rooms, all with private baths, in a quiet, garden-like setting. Some rooms overlook the patio pool. Breakfast is included (our favorite was a quesadilla filled with goat cheese, avocado slices and squash blossoms). We paid $65 a night, but prices are reduced by 20 percent in low season for four or more nights. www.oaxacabedandbreakfast.com.

La Reja Hospederia, Abasolo 103, is one block from Santo Domingo church and the Museo de las Culturas de Oaxaca, an extensive collection of artifacts detailing the region's indigenous past. The hotel has seven rooms, all with telephone and wireless Internet. Breakfast is included. Our nightly room rate was about $59. www.mexonline.com/lareja.htm.

To find other accommodations, go to www.oaxacabedandbreakfast.org or www.oaxacainfo.com.

DINING: There are about a half-dozen restaurants with sidewalk dining on the zocalo, but Terranova was found to be the best, and affordably priced. A plate of tacos, served with a side of rice, plus a soft drink, costs about $9.80. In the late evening, Oaxaquenos enjoy drinks and appetizers such as nachos or tlayudas (large crunchy tortillas) covered with beans, cheese and avocado slices.

Zandunga, a small restaurant on the corner of Calle Garcia Vigil and Calle Carranza, six blocks north of the zocalo, has enchiladas in red mole sauce -- a tasty dish but a little too heavy on the mole -- for about $8.70, including drinks.

INFORMATION: For current information about visiting Oaxaca, click on www.planeta.com/oaxaca.html. It's an informative site published by Ron Mader, a resident of Oaxaca, with tips on visiting attractions and finding places to stay and eat.