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Jon,
Yes, Venice can definitely be sketchy, but in a charming way. Anywhere relatively close to the Grand Canal is safer, but more expensive. We stayed at the Hotel Arco Antico, which is the flagship of several B&B's and it was handsdown the nicest budget hotel I have ever been in. We had our own TV, minibar, etc... all for budget prices. About 5 minutes walk to the Grand Canal. I also have stayed in B&B Rota and would never stay there again, which is saying something. Hope this helps.

Hi Jon where are you from? I'm heading to Wombats for Oktoberfest, I've noticed you've been there, any tips on the city or hostel? I'm also headed to Amsterdam, same question.
Rome is awesome by the way. Must see's (not that you asked :) Obviously Colosseum, ancient ruins (go to capitoline hill where the museum is, great artifacts and old statues or should I say pieces of...), Circus Maximus (old chariot racing fields) I loved the Pantheon, a beautifully in tact church, has a great bar next door, the spanish steps is packed w/ tourists but great shopping down the alleys, and have a gelatti (ice cream if I spelled it wrong in Italian) at the trevi fountain...great atmosphere. Can you tell i loved Italy?? I also was in Naples (don't waste your time) and Venice (well worth your time) Loved Venice, expensive but awesome. Lots of carnaval masks and Murano glass to buy. Check out the bridge of sighs, hop on the canal ferries (sneak on for free, its easy) for the best city views, and Saint Marks square is great-watch out for pegion poo overhead!!!!!
Well I think that's quite enought rambling to a stranger :) I noticed you asked that question to someone i was talking to...anyways...email anytime, happy travels, stay safe
cheers!! K