Definitely recommend renting a car, local cabs are not cheap. There is also a lot of cool stuff outside Punta del Este, and you don't need to rent anything fancy, just a plain small car will do. When it comes to hotels, stay near Gorlero Avenue. From there you can go anywhere, 20 mins to La Barra, very trendy spot, lots of art galleries, restaurants etc. 15 mins from Casapueblo, great to visit and to look at the artist (Carlos Paez Vilaro) work, maybe a drink overlooking the water. Adventure East and La Pedrera in the department of Rocha, about one hour away, or maybe Jose Ignacio 40 mins away. All major car rentals are available or even try the local Puntacar, very reliable and great price, check them out at www.discoveruruguay.com.

If you need transfer from airport or to go to another places you can rent remises or vans, taxis are another way to transport. Companies most used and with good reputation are: LingoTaxi.com (with English-speaking staff and drivers), www.airporttransfer.com.uy or www.taxisaeropuerto.com .