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Byron Bay, City Centre intro. The beach community of Byron Bay, Australia is not only located in the northeastern most part of New South Wales, it is also very close to the most eastern point in the whole of mainland Australia, the nearby Cape Byron. Many Byron Bay hotels in the city centre are quite modest, and cater specifically to the growing numbers of backpackers and Australian teenagers who spend their holidays here. The centre is full of cafes, restaurants and interesting small shops, but, as Byron Bay is quite small, visitors are never far from the main attractions for the over a million and a half tourists annually, its beaches. Byron Main Beach is the biggest and best known of Byron Bay's beaches, but Watego's and Tallow's beaches tend to be less crowded. Watching whales, swimming among wild dolphins and scuba diving at Julian Rocks are among other popular water activities here. No visit would be complete without making the trek to the local lighthouse, but visitors can also make the more challenging climb to the top of Mount Warning.