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How many days for Sydney?

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We are big-city and quaint small-town people. Our favorite places to visit - New York, Chicago, London, Paris -- you get the picture. But we also love walking in the Alps, the beach (Hawaii, south of France, Italian Riviera, etc.), and small towns like York, Cambridge, Cambria (here in California), and the like - places to poke around in small shops, take in the scene, have a casual lunch, etc. I'm telling you all that just so you can help me figure something out.

We're thinking of 2-3 weeks in Australia next January to coincide with the Australian Open (tennis). Besides Melbourne (where the tennis tournament is held), we can get a "deal" with 7 nights at a nice hotel in Sydney. Is that simply too long in Sydney (meaning we'd miss too much elsewhere)? I know there's plenty to do and see in the city, but are there also worthwhile day trips?

We would also go to the Great Barrier Reef. Ayers Rock/Alice Springs is up in the air (my husband wants to go; I'm skeptical about its "attraction").

Thanks for your advice.

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