Edward Stephens discovers caves and geysers of steam in a land shaped by volcanic activity.

We were hundreds of feet underground in a vast labrynth of spectacular tunnels when I made the mistake of asking the guide how much further it was to the exit.

“Oh, about one kilometre before we get out,” said Jose, resulting in a sharp intake of breath from me and a slight buckling of the legs.

Now I don’t normally do underground of any description since a bad experience in the catacombs of Rome.

And before embarking on the tour to the Cueva de los Verdes – the green cave – on Lanzarote I had been told it was made up of large caverns with no real confined spaces.

No one had mentioned narrow passageways and more than a mile of subterranean walking leaving you well below ground for more than an hour. If they had it would have been “no way Jose”.

In fairness, the tunnels, where more than 1,000 people once sheltered from raiding pirates, were fascinating.

They were caused by volcanic eruptions centuries ago and are part of a four-mile volcanic tube under the island.

Some 500 metres away from the green cave is the most famous cave on the island, the Jameos del Agua. The vast cavern is a huge amphitheatre where classical concerts are held. It’s even got a lake which is home to a rare species of tiny blind albino crab.

The island was formed millions of years ago by volcanic eruption and it’s the legacy of this which forms many of the major attractions.

So when first time visitors say they are going to hit the hottest spot in town they’re not talking about the latest nightclub but the Timanfaya National Park, dominated by the volcano of the same name.

For even though the last eruption, which lasted six years, was way back in 1730 the so called “Mountains of Fire” are still active beneath the surface. If you visit the park, guides will demonstrate how hot it is below ground by pouring water into openings in the rock which is immediately ejected as steam.

The National Park is a vast area of solidified lava in the centre of the island with just one road crossing it.

Getting around Lanzarote is easy because of its compact size and the network of excellent roads, although the signposts are a bit hit and miss and could do with a re-think.

Car hire prices are so cheap that they fall within most people’s budgets. We booked a car for two days and the final bill was just £38.

Once you have a car there’s plenty to see and a wide choice of locations to visit. If you’re looking for something lively the original 60s resort of Puerto del Carmen, with its beach area fringed by a strip of shops, bars, restaurants and clubs, will appeal, although it’s not everyone’s cup of tea – if you can get anything as innocuous as tea along there that is.

The south of the island around Playa Blanca is much quieter, although even here there is far more development than there was a few years ago. It’s an area which boasts some of the best beaches and a wide choice of hotels.

Travelling with Thomas Cook on a direct flight from Birmingham we opted, however, to stay at Costa Teguise, a resort whose central location makes it ideally placed for easy access to the sights of both the north and south of the island by either car, reliable local bus service or excursion.

And our hotel, the somewhat oddly named Be Live Hotel, turned out to be a real find.

An all-inclusive property, it re-opened on July 15 after a 9.6 million euro refurbishment – so everything is new. All of the 272 spacious bedrooms have a bright, contemporary look to them and a vast balcony with a sea view.

As an all-inclusive, it’s a property where breakfast, lunch and dinner are all based on a buffet arrangement but with an ever changing variety of imaginative food available in copious amounts, and something to suit everyone. And, of course, all the drinks with meals, and even between meals, are complimentary. The staff were always friendly and helpful but best of all it was one of those hotels where you could easily relax.

If you wanted to burn off the calories there were plenty of activities on offer, with a gym, tennis courts, paddle courts and – unusually for a holiday hotel – even squash courts.

I’m not usually one craving entertainment on holiday but I have to admit that the after dinner shows even had me hooked, probably helped by a free after-dinner brandy.

About 15 minutes’ drive from the hotel is the extraordinary home of Lanzarote’s most famous artist, Cesar Manrique. Our visit there proved to be particularly poignant as it coincided with the 20th anniversary of the great man’s death following a road accident.

Manrique’s influence is everywhere on Lanzarote, from the little devil symbol he designed for Timanfaya – after he successfully launched a campaign to have the area around the volcano declared a national park – to the former gun battery from the Spanish-American war at Mirador del Rio with a spectacular view over to the next Canary Island, La Graciosa, that he turned into one of Lanzarote’s top tourist attractions.

His house, in the village of Tahiche, is stunning. It’s dazzling white walls contrast with the black of the lava field that borders it, but it’s the inside that’s especially fascinating. Beneath the conventional ground floor with its priceless collection of Manrique paintings is an underground living area of five strangely shaped and individually decorated rooms, each one created by large bubbles which developed in the volcanic lava.

Lanzarote may be a small island but you will find plenty to do and see. The capital, Arrecife, is an easy bus ride from Costa Teguise and boasts a wide range of modern shops and a stylish seafront location while the former capital, Teguise, plays host to the largest market on the island each Sunday.

And if you visit the market look out for the hilltop Fort of Guanapay, built to withstand the numerous pirate attacks which plagued Lanzarote in the 15th century.

One thing’s for sure, one week on this island is not really enough.

Travel Facts

Thomas Cook is offering seven nights on allinclusive at the 4-star Be Live Lanzarote Resort in Costa Teguise, Lanzarote, from £419 per person, based on a travel date of December 9, 2012 from Birmingham and available year round.

Click on www.thomascook.com, call 0844 412 5970 or visit your nearest Thomas Cook or Co-operative Travel.

Lanzarote travel guides are available from £4.99 from www.thomascookpublishing.com or 01733 416477.