Tucked between Mt Wellington and the River Derwent 12 miles (20km) upstream of the river mouth, Hobart is the capital of Tasmania, and boasts one of the world's most secure deepwater harbours. The city is the essence of Australia's only island state and represents the fountainhead of white island settlement. It was established in 1804 and is saturated in colonial history.

The main historical district, Battery Point, is characterised by colonial stone cottages, tearooms, antique shops, restaurants and pubs. The Narryna Van Diemen's Land Folk Museum at Battery Point depicts 19th-century pioneer life. Here one also finds the Maritime Museum of Tasmania. Like most Australian cities Hobart has plenty of green space; the largest here is the Royal Tasmanian Botanical Gardens, which are known for English-style plantings and trees, and a Japanese garden dominated by a miniature Mt Fuji.

Other amusements for visitors include steam locomotive rides, guided tours of a former women's prison, tours of the Cascade Brewery, gaming at Australia's first legal casino at Wrest Point, taking a cruise of the harbour, or sampling the delights of the fudge factory at Island Produce Tasmania. Mount Wellington, which is a 13-mile (22km) drive from the city, offers extensive views across alpine shrubs of the city below.