Melbourne & Tasmania Travel Guide Melbourne is Australia’s second largest city and capital of the state of Victoria. The city has numerous galleries, parks, museums and theatres along with enjoyable beaches, cafes and shopping streets. Many people use the city as a base from which to explore the surrounding areas of the Great Ocean Road and the Grampians National Park. Tasmania is the smallest and only island state in Australia. Nearly half of Tasmania’s archipelago of 334 islands are protected. The national parks and UNESCO World Heritage sites make Tasmania a popular destination for tourists.