We had a lie-in this morning (well, it's Christmas - we're allowed) and left the hostel just before twelve. We decided to go to the Opera House for a look at the building close up. Apparently it's a World Heritage listed building because it's so unique and you can't fail to be impressed each time you catch sight of it while walking around the harbour. We did want to do the guided tour but at nearly $30 each we decided that it was a bit beyond our budget so instead we walked around the outside and took photos on the steps. We also had a look inside to see what was currently showing and were surprised to find that it was a Hairy Maclary (from Donaldson's Dairy) show! Then we headed for the Royal Botanic Gardens next door and had a wander through, stopping for lunch at a crowded café in the centre. We thought a couple of days ago that we might come to the gardens to watch the fireworks but we've since found a pub near Circular Quay called the Paragon Hotel that has a good deal on so we'll probably do that instead so that we can be closer to the big display.

Our next stop, via a train to Town Hall, were the shops in the city where Laura found a dress to wear on the big night. After browsing in a few more crowded shops, we headed back to the hostel for a few hours.

In the evening, we went to see the Iron Lady at the Dendy Cinema in Circular Quay. Meryl Streep was good in it - a convincing performance as Maggie, helped out by a good wig and a set of false teeth! On the way back, we stopped for a quick drink at the Ship Inn on Alfred Street and left in a hurry to follow someone who Laura thought was one of the Australian Masterchef contestants but turned out to be just a random woman!

Tomorrow, we're off on a bus tour to see a bit more of the city.