It is not a natural place to put a city. Even on the most basic of maps, Hobart’s geographic limitations are obvious. The city is strung out, long and thin, on the banks of the broad River Derwent estuary. To one side, water. To the other, mountains. The capital of Tasmania is squeezed between the two.

On my first exploratory walk, the underlying terrain leaves me breathless. Literally. Many of the streets slope steeply. A simple stroll is transformed into a brutal hike.

Later, having taken a bus to the summit of Mount Wellington, which looms above the city, I am rendered metaphorically breathless. From the viewpoint, 4,166 feet, the entire city is spread beneath me. The dramatic contours of the landscape have an undeniable benefit: Hobart is one of the most beautiful cities in the world.

This is beauty born of adversity. Hobart was founded in 1804 as a penal colony for British and Irish convicts condemned to exile in one of the outermost parts of the world. The sharp southern wind prickling my face as I stand on the summit has blown direct from Antarctica.

Hobart’s strategic position as the last significant settlement before the stormy expanse of the Southern Ocean and the great white continent beyond has been one of the secrets of its metamorphosis from convict outpost to thriving city.

In its first hundred years, Hobart was a vital port for whalers and sealers, and associated industries sprang up to service them: shipbuilding, pubs and inns, import and export companies. You don’t have to look far to find their imprint on the fabric of the city.

At Salamanca Place there is an imposing row of sandstone warehouses that were built in the 1830s.

After years in disrepair, the warehouses have been converted to smart galleries and restaurants, and they provide the backdrop for a craft market on Saturday mornings.

Immediately south of Salamanca Place is the former mariners’ village of Battery Point, which boasts some of the best preserved 19th century architecture in Australia. The focal point is Arthur’s Circus, a ring of quaint tinroofed cottages attractively set around a village green. The district is dotted with historic pubs, which, a century ago, thronged with grizzled sailors and shipwrights.

The economy of modern Hobart has diversified, and two quite different factories are among the most popular tourist attractions in the city. In the northern suburb of Claremont is the Cadbury Chocolate Factory (http://www.cadbury.com.au), which offers tours — complete with free samples — from 8 a.m., Monday through Friday. Closer to the city center, the Cascade Brewery (http://www.cascadebrewery.com.au), Australia’s oldest, provides two-hour tours from 9 a.m. daily, and a chance to taste their excellent beer.

Through all the expansions and changes of recent decades, Hobart has remained true to its nautical traditions. The world’s leading manufacturer of high-speed catamarans, InCat, is based here, building vessels for ferry companies and international navies. And the city is a key staging post for research and tourist voyages to Antarctica.

Most tourists, however, look north. Hobart is the gateway to Tasmania, Australia’s smallest state, with its forests, lakes and rugged mountains. Around 20 percent of this remarkable island has been accorded World Heritage status.

From the summit of Mount Wellington, I descend on foot. As the path twists and undulates, wending through dense forest, I gain occasional glimpses of Hobart. And then it vanishes, and I am plunged back into wilderness, with only birdsong for company.

On reflection, this must be one of the most natural places in the world for a city.

LODGING

HENRY JONES ART HOTEL

Occupying a row of warehouses overlooking Victoria Dock — the very spot where Hobart was officially founded 200 years ago — this stylish property is Australia’s first dedicated art hotel. The rooms tastefully incorporate echoes of the industrial past — thick stone walls, heavy wooden beams — with state-of-the-art décor. The bathrooms are housed in futuristic glasswalled pods.Works of art adorn the public spaces, establishing this hotel as a chic, sophisticated retreat right in the heart of Hobart. $$$$
HENRY JONES ART HOTEL
25 Hunter St.
tel 61 3 6210 7700, fax 61 3 6210 7755
http://www.thehenryjones.com

THE ELMS OF HOBART B&B

Live and breathe a piece of Hobart’s history. Located in North Hobart, a short distance from downtown, this venerable 1917 mansion has been converted into an elegant bed and breakfast.With just six guest suites, and a shared lounge looking out at a beautiful garden, it promises the one element that the more impersonal city hotels are unable to provide: good company. $$$
THE ELMS OF HOBART B&B
452 Elizabeth St.
tel 61 3 6231 3277, fax 61 3 6231 3276
http://www.theelmsofhobart.com

WREST POINT HOTEL CASINO

Effectively three hotels in one, Wrest Point has been a Hobart institution since the 1930s. In the early 1970s, the old building was ripped down and a 17-story circular tower was built in its place. It remains the city’s tallest building, and one of its most distinctive landmarks. Granted a casino license in 1973, the Wrest Point complex has been the keystone of tourism in Hobart for more than 30 years. The best rooms are in the tower; the suites are the only five-star accommodation in the city. Wrest Point Water Edge offers four-star rooms, while the Wrest Point Mountain Side (formerly the Comfort Inn Motel) is three-star. $$-$$$
WREST POINT HOTEL CASINO
410 Sandy Bay Road
tel 61 3 6211 1750
http://www.wrestpoint.com.au

SALAMANCA INN
This all-suite property is conveniently located close to Salamanca Place. All of the suites are equipped with a kitchen, personal computer, highspeed Internet access and complimentary cable television. The twobedroom suites include a mezzanine floor and private balcony. A basic restaurant is located on the ground floor, though there is a wide-range of restaurants to choose from in the immediate neighborhood. And there is the option making use of your own kitchen. $$
SALAMANCA INN
10 Gladstone St.
tel 61 3 6223 3300, fax 61 3 6223 7167
http://www.salamancainn.com.au

DINING

GONDWANA

Twenty years ago, the idea of Australian cuisine would have been taken as a joke. Local food tended to be “good honest tucker” such as pies with mushy peas. But lately a genuine contemporary Australian cuisine has emerged, and this award-winning restaurant in Battery Point is a great place to sample it. The restaurant is housed in an unpretentious tin-roofed cottage built by convicts. Among the main courses is fillet of beef served with pinot treacle. Great, sophisticated food, but who knows what the convicts would have thought of it? $$$
GONDWANA
22 Francis St.
Battery Point
tel 61 3 6224 9900, fax 61 3 6224 9033

MURES UPPER DECK

All seafood restaurants should have a private fleet of fishing boats.The Mure family have been fishermen and fishmongers for 40 years, and their restaurants on the harborside are renowned for the freshest of ingredients. Mures Lower Deck is a simple, good value bistro, while the Upper Deck offers a more refined dining experience together with great views of the waterfront. Especially recommended is the hook-caught blue-eye, which is panfried and served with herb polenta. $$
MURES UPPER DECK
Victoria Dock
tel 61 3 6231 1999
http://www.mures.com.au

HOBART NOODLE
Opened a couple of years ago by a Taiwanese/Malaysian couple, this restaurant and carry-out in North Hobart has become extremely popular. Its name says it all: If you like noodles, this is the place. They are all homemade, and are served with a choice of 11 different sauces. Portions are generous, and, if you’re eating in, are accompanied by as much green tea as you can drink. $
HOBART NOODLE
12 Letitia St.
North Hobart
tel 61 3 6234 5005

DIVERSIONS

Mount Wellington is the best place from which to get your bearings. The view of the city from the visitor center at the top is extraordinary, though access is dependent on the weather. In winter, the road is sometimes closed due to snow. In the summer months (December to February) there is regular bus service to the summit from downtown. If you’re reasonably fit, it is worth taking the bus up and then walking down — allow half a day for the whole excursion. When Mount Wellington is closed or under cloud, an alternative city panorama is available from Mount Nelson.

Central Hobart is very compact and easily walkable, though be prepared for the steep gradient of some streets. On the north side of the Central Business District is a hilly expanse of parkland called Queen’s Domain, part of which is devoted to the excellent 33-acre Royal Tasmanian Botanical Gardens, home to 6,000 exotic and native plant species; admission is free.

Port Arthur Historic Site, situated on the scenic Tasman Peninsula 90 minutes by car from Hobart, protects the well-preserved architectural remains of one of Australia’s most notorious penal colonies, where 12,500 convicts were imprisoned between 1830 and 1877. It is a very moving place.

INFO TO GO

Airline passengers arrive at Hobart International Airport (HBA), which currently offers only domestic flights to Melbourne, Sydney, Brisbane and Adelaide. The taxi fare from the airport to downtown is about $25.