(FORTUNE Magazine) – La vita e dolce for U.S. tourists headed for Italy this summer. Despite the dollar's recent wobbles, Europe's currencies are still weaker in comparison with last August. Italy offers the most vacation power: $1 gets you almost 1,600 lira, a 50% increase. Prices are down dramatically for rental properties. Villas can be found for 20% less than last year, even though you must pay U.S.-based agents in dollars. But shop around. Says rental agent Daniel Morneau, president of Vacanza Bella in San Francisco: ''The price has more to do with the level of greed of the owner than with the quality of the house.'' The real bargains are available once you start making like a tourist. In July two orchestra seats for Falstaff at Milan's La Scala will run you $190, $55 less than last summer. You can book now by fax (011.39.2.88.79297) and charge them to a credit card once you get confirmation. You still get a good rate. The well-dressed opera lover may sport a suit of lightweight Australian . wool from Ermenegildo Zegna, at $1,700 in New York City, but $900 in Milan. A gondola ride in Venice tracks the exchange rate and costs $1 a minute, vs. $1.50 last year. Italy's instability, brought about by continuing political scandals, has caused a few Americans to cancel their trips. But Mario Perillo, who has been booking tours there since 1945, scoffs at such fears. Says he: ''Whether the mayor of a town took a bribe or paid someone off has no real bearing on going to a nice trattoria and enjoying some marvelous pasta.'' -- R.T.