I stayed in Port Douglas for 4 nights during December 2008. Basically, it is a resort town (filled with holiday apartments) and ‘gateway to the Daintree’.
The township consists of a main road with shops (mostly tourist-oriented), a marina, a beach with stinger net (important at this time of year due to Marine Stingers) and an endless array of holiday accommodation.
Given the large number of ‘vacancy’ signs I saw throughout town, and the current worldwide financial crisis, I’d highly recommend bargain-hunting for accommodation. You should be able to get a good deal (such as off-peak rates during peak season) if you ask around, or try some of the Last Minute / Wotif type sites to find some good deals.
Apart from the beach and apartment swimming pools, there’s not much within Port Douglas itself to keep occupied. I’d recommend a car so you can travel up to Mossman (great tropical rainforest walks and a refreshing swim in the Mossman Gorge) and even further North to Cape Tribulation and the Daintree National Park. (Don’t bother doing any Crocodile cruises in Summer – the crocs prefer staying in the water when It’s warm.)
There’s more to do around Cairns (to the South), so you might want to split your vacation between locations.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.