Chile Guide
The Carretera Austral
Puyuhuapi
Squatting at the head of the narrow Ventisquero fjord, surrounded by steep, wooded hills, quaint little PUYUHUAPI is a great place to break your journey along the Carretera Austral in either direction – not only for the wild beauty of its setting, but also for its proximity to the most compelling attractions in the whole region, the Termas de Puyuhuapi and the Parque Queulat. Puyuhuapi's rambling streets and old timber houses offer a pleasing contrast to the utilitarian "villages" installed along the Carretera in the 1980s after the completion of the road. You could easily while away an enjoyable hour or two just strolling around or hanging out by the old jetty, trying to spot dolphins in the green waters.
The best place to stay in Puyuhuapi is the Casa Ludwig
at Av Otto Uebel s/n ( 
67/325220, 
l.ludwig@entelchile.net, 
www.contactchile.cl ; Price: CH$10000-15000 shared bath, Price: CH$25000-35000 en-suite), a delightful yellow chalet with comfortable rooms, polished wooden floors and great views, run by a charming lady who even lets people camp in the house or on the grounds. Or, head to the very Teutonic Hostería Alemana at Av Otto Uebel 450 ( & 
67/325118, hosteria-alemana@entelchile.net; Price: CH$25000-35000), a large, elegant timber house set in a mature garden. Opposite, Hospedaje Mercury ( 67/325102; Price: CH$5000-10000) is closer to the budget end but still pleasant and scrupulously clean, with small, neat rooms and pastel-coloured walls. The Residencial Elizabeth, Circunvalación s/n ( 67/325106; Price: CH$5000-10000), offers simple rooms and filling home-cooked meals. Outside of town, try the fishing lodge Cabañas El Pangue, with comfortable cabins or the Termas de Puyuhuapi lodge.
In the village, you can tuck into excellent meals at the cute Café Rossbach, opposite the carpet factory, where wild berries are used in their mouth-watering küchen. Equally delicious küchen and other simple dishes are offered at Kermes, Circunvalación 14, in a cottage with a colourful garden – the CH$3000 full lunch is an unbeatable value. Best of all, though, is the excellent Lluvia Marina, next to Casa Ludwig on Avenida Otto Uebel, where you can get real coffee, home-made cakes and reasonably priced meals, including salmon ceviche, onion soup, pasta, pizza and meat dishes. It's only open in January and February.