Guide to Dunalley Tasmania Australia

Dunalley is more than a waypoint on the journey to the Tasman Peninsula; it’s a vibrant village with its own unique story to tell. Just 45 minutes from Hobart along the Arthur Highway, Dunalley is the kind of place where history and natural beauty intersect.

Known For

• Fresh seafood, including daily caught crayfish and oysters.
• The historic Denison Canal with its iconic swing bridge.
• Access to the Tasman Peninsula and Port Arthur.

Dunalley’s roots trace back to the early days of Tasmania’s settlement, with its name borrowed from a small village in Ireland. It became a focal point of maritime travel when the Denison Canal was completed in 1905. This feat of engineering, entirely dug by hand, provided a shortcut for ships navigating Tasmania’s rugged coastlines. Today, the swing bridge spanning the canal is a beloved landmark, connecting past and present.

The town’s resilience was tested during the devastating bushfires of 2013. Much of Dunalley, including its school and police station, was destroyed. However, the community rallied, rebuilding stronger while maintaining its rich heritage.

Situated at the isthmus connecting the Forestier and Tasman Peninsulas, Dunalley is a natural gateway to outdoor exploration. Visitors can kayak along the serene Dunalley Bay or embark on fishing trips that promise abundant marine life. The surrounding coastline provides ample opportunities for walking, wildlife watching, and photography, with the Tasman Peninsula’s dramatic cliffs just a short drive away.

Where To Stay

While Dunalley itself offers cozy holiday rentals, nearby locations like Eaglehawk Neck expand the options for travelers seeking everything from family-friendly lodgings to romantic retreats.

One of the standout options in Dunalley is the availability of private holiday rentals. These homes offer a chance to stay close to the water, with properties boasting panoramic views of Dunalley Bay or cozy settings near the village center. These rentals often come fully equipped, providing the comforts of home with a touch of seaside serenity.

For those looking for boutique experiences, nearby Eaglehawk Neck, just a 20-minute drive from Dunalley, offers several excellent options. The Lufra Hotel and Apartments is a popular choice, known for its stunning ocean views and proximity to iconic sites like the Tessellated Pavement. It combines the convenience of a hotel stay with the option of self-contained apartments for families or groups.

Another nearby gem is Storm Bay Bed and Breakfast in White Beach, approximately 35 minutes from Dunalley. This B&B provides a blend of luxury and warmth, with spacious rooms and a focus on showcasing Tasmania’s natural beauty. Guests can enjoy tranquil gardens, sweeping views, and a hearty breakfast featuring local produce.

Travelers seeking an eco-friendly escape might consider staying at Stewarts Bay Lodge in Port Arthur, a short drive from Dunalley. Nestled in a forested area near the beach, this lodge combines sustainability with comfort, offering cabin-style accommodations ideal for families or couples. Its location also makes it an excellent base for exploring the UNESCO World Heritage-listed Port Arthur Historic Site.

Camping enthusiasts will find several options nearby, including the Taranna Cottages and Campground, which provides basic facilities for those who prefer a more rustic experience. This site is close enough to Dunalley for easy day trips while still offering a peaceful retreat surrounded by nature.

Eat & Drink

Dunalley has earned its reputation as a destination for fresh, local flavors, particularly its seafood offerings. The dining scene is anchored by its connection to the surrounding waters, with many eateries emphasizing fresh catches and locally sourced produce. Whether you’re in the mood for a quick snack or a long, leisurely meal, there are plenty of options to satisfy your taste buds.

One of the must-visit spots in Dunalley is the Dunalley Fish Market, where seafood lovers can indulge in some of the freshest catches available. The market is famed for its cooked-to-order crayfish, shucked oysters, and a range of seasonal delights straight from the waters of Tasmania. The simple, no-fuss setup makes it an ideal stop for a casual, memorable meal by the water.

For a more refined dining experience, the Dunalley Waterfront Café is a standout. Located in a historic 1942 timber building, the café offers a relaxed atmosphere paired with stunning views of the waterfront. Their menu highlights local produce, including fresh seafood, artisan cheeses, and seasonal vegetables, all served with a creative flair. The café also doubles as an art gallery, showcasing works by local artists, adding an extra layer of charm to your visit.

For those seeking a drink to accompany their meals or as a standalone experience, the Bangor Vineyard Shed is located just south of Dunalley. This award-winning vineyard offers wine tastings that highlight Tasmania’s cool-climate varietals. Alongside the wine, their restaurant serves dishes that celebrate local ingredients, such as seafood chowder and slow-cooked lamb shoulder. Pair your meal with a glass of their celebrated pinot noir or sparkling wine for a truly Tasmanian experience.

Another unique spot for spirits enthusiasts is the Dunalley Bay Distillery, where visitors can enjoy handcrafted gin and whisky tastings in a cozy seaside setting. The distillery is gaining a reputation for its small-batch offerings, which incorporate native Tasmanian botanicals and traditional distilling methods.

Coffee lovers will appreciate the burgeoning café scene in the area. Cubed Espresso Bar, located nearby, is a favorite among locals and travelers alike for its expertly brewed coffee and light snacks. Their dedication to sourcing high-quality beans ensures every cup is worth savoring.

For something quick and hearty, the Dunalley Hotel offers a relaxed pub-style menu in a historic setting. Established in 1866, this classic Tasmanian pub is a great spot to unwind with a pint of local beer and a hearty meal, whether you’re craving fish and chips or a perfectly grilled steak.

Getting There and Around

Dunalley is an easy 45-minute drive from Hobart, with scenic views of Tasmania’s southeastern coastline. For those traveling by boat, the Denison Canal remains a functioning maritime passage, offering a unique entry to this coastal community. The village is small enough to explore on foot, but having a car is ideal for venturing to nearby attractions.