Yes, there IS an inexpensive place to stay in Taormina and it is 'The Dolphins Guest House'. Located on a quiet side street, this flat has a large living/dining room with a balcony that overlooks a peaceful garden with great views of the ocean. Because I was alone in the home for the evening I did not mind that the bathroom for my single room was down the hall. There were items available in the kitchen to fix a simple breakfast with fresh fruit which I suplimented with food bought at a local alimentari. The hostess did not live on sight, but when I met her she was very friendly and knowledgable. I loved watching the sunrise over the water on the balcony in the morning.

There are plenty of choices when it comes to accommodations in Taormina - but budget accommodations right in the heart of town are a little harder to come by.

For its price and location, The Dolphin Guest House was perfect. However, my only "complaint" (not a big one, though) was that for the duration of my stay, I didn't see any of the owners (after I was let in to the premises and shown my room), and therefore, couldn't get any information or advice on Taormina, or ask them for recommendations on anything at all.

It was pretty cold at night when I was there (November, low season), and the radiator was not turned on. I couldn't ask anyone for help (extra blankets/heating), since there was not a soul to be seen.

There was no one to ask for fresh towels, and I was the only occupant in the entire house during my stay (which was nice in terms of privacy, I suppose.. but I confess I felt a little creeped out in the entirely too silent apartment).

I couldn't even ask the owners what time was checkout time, and didn't get to arrange to make payment - in fact, I was a little worried whether or not someone would turn up to collect my rent!

But just before I left, the cleaning lady turned up (excellent timing!), and asked me for 50 euros. I was a little tickled, coz if I had been a dishonest guest, I might have done a runner, and left the house earlier, and no one would have been the wiser!

By the way, I just remembered something abt Dolphin Guest House. I stayed in a single room the last time round.. and it was the room facing the alley the front door is located. It is quiet at night, so I had no problems sleeping at all. But I remember one afternoon, I was feeling tired, and decided to head back for a rest - only, I didn't get to nap at all, because 2 housewives next door decided to stand by the alley and started gossiping away! I could hear every word of their loud chatter (I didn't understand a single thing, of course) and at some point, they even started arguing/quarrelling rather ferociously. I guess it was my bad luck - but that whole conversation lasted 2 hours!!! *groan*

So, in a nutshell, the single room facing the alley actually has a little less privacy (and higher noise level) because people pass by all the time, and you get to hear doors open and closing when neighbours enter/leave the building.

Still, despite my above reservations, the location for Dolphin Guest House was very ideal for my stay in Taormina - I have no qualms about staying there again the next time I am in town. I would definitely recommend it to other fellow travellers looking for a short budget stay in an otherwise relatively expensive mountain resort town.