Holiday in Tasmania?

It really depends where in Tasmania your parents want to go, what they define as cheap, and what they want to do while there. Truth be told, I found cheap accommodation to be fairly difficult to find throughout Australia. But Tasmania was hungry for tourism so it wasn't nearly as "exxy" as Brisbane or Melbourne.

But about an hour southwest of Hobart there is a little town called Geeveston, which is very quaint. There is a Bed and Breakfast there called Bears Over the Mountain. The owners were very nice and the room prices were very reasonable (the best deal we found in Australia during our trip; granted it was winter and they were giving huge discounts). The owners also own the restaurant next door and are happy to make dinner for you. It makes for a nice drive into Hobart along the coast, and Geeveston is situated nicely if you want to visit the Tahune Air Walk (which gives a beautiful view, but which is also a bit of a hike). The web site for the B and B is here:

http://www.bearsoverthemountain.com/

Airwalk is here:

http://www.forestrytas.com.au/visiting/visitor-sit...

That is in the South and near Hobart (we used it as our base for most of our travels in the Southeast). If you head toward the centre of TAS, near the Gordon Dam, there really is only one place to stay in the entire area (no exaggeration): The Lake Peddler Chalet in Strathgordon. The rooms are pretty shabby, but the food was good (I recommend the wallaby). Watch out for the wombats and pademelons while driving at night (pademelons are everywhere in TAS, particularly at night). Sunset over the lake was gorgeous. Sunrise over the dam was breathtaking (but there are a lot of stairs). Web site here:

http://www.lakepedderchalet.com.au/

In the North we stayed near Launceston but the place we stayed was expensive and very forgettable so I can't recommend it (mostly because I don't remember the name). There are quite a few options up there, but it was late and we just stopped at the first place we could find. If your folks go to the north, I recommend stopping by the seahorse exhibit in Beauty Point, as well as the platypus house, which is across the parking lot. If you're lucky, the echidnas might sniff your feet.

We didn't go to the west or northwest so can't recommend anything there. You might try virtualtourist.com for more suggestions:

http://www.virtualtourist.com/travel/Australia_and...

Tasmania is a very lush, verdant place and I recommend venturing out of Hobart for at least some of the trip. It would be almost criminal not to. If your parents want to stay close to Hobart, though, there is still plenty to do. Speaking of criminals: if Port Arthur is in the plans, there is a nice place near Sorell called Sunset Beach Cabins. They are little private cabins, all walking distance from a beautiful beach. A web site for it is here:

http://www.about-australia.com/travel-guides/tasma...

I thought the price was reasonable, and with the added bonus of being relatively close to the airport.

Meanwhile, if they are thinking of taking a tour of the Cadbury facility in Hobart, they should think twice. They no longer give tours and just make you watch a video. I do highly recommend the drive up to Mt. Wellington, however. It is an amazing view of a large part of Tasmania.

I found the Blue Hills Motel in Battery Point quite reasonably priced. It belongs to the Best Western chain, and the rooms (while nothing special) are clean and have their own amenities.

It's walking distance to the Salamanca Market or into downtown Hobart; and just a short taxi ride to the Wrestpoint Casino.

I've stayed at Montgomery's Hotel in Hobart before, thought it was really good, and well priced. They've got both hostel-type accommodation, as well as private rooms with either shared bathrooms or your own ensuite. It's close to both the CBD and the waterfront.