It is pretty slim pickings when it comes to backpacking on Tanote Bay, but we did like the fun vibe at Poseidon and the budgetish bungalows they offer.
If you're on a budget, this would be our first stop (reservations recommended) as Poseidon retains a bit of a backpacker feel and the room standards reflect that. Arranged at oblique angles to one another, most of Poseidon's bungalows run up the forested hill behind the main restaurant and are fan-cooled affairs with decks with a lazy bench and hammock. Inside you'll find a bed, cold water bathroom, fan-cooling and not much more than that.
These are simple pale-blueish concrete bungalows scattered around the garden and Poseidon have some larger rooms as well, but we were unable to see inside them. Their more affordable huts are considerably better than the cheapest fare at Family Tanote Bay Resort (which we thought were pretty dire) which sits at the northern end of the beach.
There is a main resort restaurant, then beside it a "Thai Isaan" restaurant where you can climb upstairs to eat on axe pillows and be served by a playful crew. The beach out front is good. If full, Mountain Reef Resort just to the south of here has some fan rooms from 900 baht (and air-con from 3,500 baht), while just to the north of here, Diamond Resort's beachside huts seemed a steal at 800 baht, but were absolutely rank inside and we really couldn't recommend them.
Type of room, low and high season prices
Room: Standard double room, low season: 800 baht, high season 800 baht. Notes:
Room: Superior double room, low season: 1,200 baht, high season 1,200 baht. Notes:
Ao Tanote, Ko Tao
T: (077) 456 734
Room rates: 600B to 1,500B