Oban, the only town on Rakiura Stewart Island, is small and rustic, sitting within modest Halfmoon Bay. It was once a pure fishing village. These days, the fishing industry is as much about tourism as it is about making a catch, so don’t pass up the opportunity to go out on one of the boats.
There are short road extensions north to Horseshoe Bay, then Lee Bay for the start of the Rakiura and Northwest Circuit tracks, west to the airport and south to Paterson Inlet / Whaka a Te Wera and access to Ulva Island. You could easily walk the roads in a day, plus several short connecting tracks, much of it surrounded by native forest and birdlife.
The port terminal, nearby visitor centre, and South Sea Hotel are the obvious landmarks, all within a few minutes' walk. Other accommodation options are scattered around Oban, along with several cafes, restaurants, and a grocery store.
If you walk north on the roads, sticking to the coast, there are three nice beaches with surprising golden sand; Bathing, Butterfield and Bragg Bay. To the south over Peterson Hill is Ringaringa Beach and Ringaringa Point.