Found your post after doing some searching about other stuff, but i'm happy to help if i can. I live in Melbourne, Australia and have been in the hospitality industry for over 25 years. Your dates, 1st to the 3rd of January 2006 are right in the middle of our summer school holidays on our best beaches, and as you could expect you will be paying the most you could possibly pay for a hotel room at any time in Australia. However..... the Gold Coast and Cairns are gorgeous and we have very high standards of accomodation down here so unless you are a princess, there is really no need for you to stay in a 5* property. Don't get sucked into paying a fortune for your hotel this far out from your holiday. You have time on your side. Cairns is a nice little city, i recommend a day trip out to Green Island to hang out by the hotel and do some snorkeling if that's all you have time for. Palm Cove is also a really lovely spot, wifey and i stopped there for breakfast on the way back to Cairns from Port Douglas and it was just beautiful. I suggest you forget about the Kuranda sky rail and scenic train as they are expensive tourist traps....honestly, but if money is not a problem by all means feel free....just don't expect much from Kuranda. As an Australian, i was embarrassed walking along the streets and looking at the crud they were selling as souveneirs. There is nothing there to see.....really. I was in the area only 12 months ago, my sister in law has an apartment in Port Douglas and we did the whole area. About an hours drive north of Cairns is Port Douglas and thats when things really get interesting, especially for diving and snorkeling on the Great Barrier Reef. Unbelievable....my wife saw a green turtle as big as our dining table just meters away....it's breathtaking. I can't recommend doing this more highly, it was one of the most amazing experiences of my life. And the town is utterly charming, very clean, safe, good restaurants that you can just pop into for dessert if you want too, and you'll really get a feel for what the Aussies are like. There are real estate agents in Port Douglas and Cairns that rent out apartments if that's a way you'd like to go. It can be very cost efficient with not having to dine in the local restaurants and pubs(hotels), and they have their own laundries as well. There is a fabulous supermarket that can provide anything you would want to cook. My wife and i use www.wotif.com.au for accomodation alot, and you might also try www.bestflights.com.au as they have quite alot of deals with hotels going on from time to time. Please feel free to contact me by pm, and if you need to we can keep in touch by email. For great value diving go and see http://www.habadive.com.au. Brilliant. They will help you pick your day/s to go out as the weather plays a very important part of the experience....calm seas in the days prior is good. Anyway, good luck and you know how to find me. Tones.