Its grid layout makes Punta Arenas easy to navigate. Start at Plaza de Armas, also called Plaza Munoz Gamero, the center of town. Most landmarks and accommodation are within a few blocks of the Plaza, so you'll never have to wander too far from your hostel.

Great places to explore include the port area and the Punta Arenas cemetery, which dates back from the 1840's. There are also several quality museums including the Regional Museum, with historical artifacts from the area, the Museo del Recuerdo, with collections of old steam engines, horsecarts, historic houses and farm implements, and the Salesian Society museum of natural history.

A bit outside of town you can find the "Seno Otway" penguin colony, where each year hundreds of penguins come to breed. Check with your hostel to organize a trip with one of the travel agencies in town. You can also observe whales at Rey Jorge Island National Sea Park, and various other species of native animal life at Fauna Patagonica "Estancia Lolita."

Punta Arenas celebrates all the Chilean religious festivals, and also throws in a few of its own. To protect locals from the long, dreary winters, the city throws a "Carnaval de Invierno" in late July, a two-day festival with fireworks, floats, and all of the standard Carnaval trappings. There are also celebrations during winter solstice, the longest night of the year on June 21, when residents know they will finally start getting some more daylight.

There are plenty of cheap hostels in Punta Arenas to suit an adventuresome backpacker on a budget. Though Chile is the least inexpensive country in South America, prices here manage to stay relatively low. With its truly unique landscapes and wildlife, Punta Arenas is truly a place like no other, and certainly worth making room for in your budget during your travels through Chile and Patagonia.