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This tiny island right off the coast from Townsville in northeastern Queensland is always awash with tourists, but there are now about 2,000 permanent residents as well. There are quite a few hotels on the island in all price ranges, and fortunately there are several hostels in Magnetic Island as well. The main attraction is that over half the island is set aside as a national park, and the island’s many beaches and bays are also great for water sports in this tropical setting.

There are several Magnetic Island hostels that offer dorm beds in addition to some private rooms. There are quite a few other budget places in town that are in the same general price range so you might shop around a bit and find you can afford something a step up from a dorm bed. The Horseshoe Bay and Arcadia Bay areas are the main stops for people enjoying the water during the day and sipping a few beers at night.

The area around Nelly Bay just to the south is undergoing a major development project. They are adding expensive beachfront housing developments as well as high-end hotels in the same area. Picnic Bay isn’t quite so upscale, and in fact there is a Magnetic Island hostel located just in the center of this southern village.

In case you aren’t from Australia, you should know that hostels in this country are usually called “backpackers” but they are otherwise identical. Just as the hostel movement has been changing in other parts of the world, hostels/backpackers in Australia are also becoming a common option for all budget travelers rather than just young people who’ve never owned a proper suitcase.

And this country is mad about traveling so they frequently use the hostel network as a way to stretch their travel budgets. It’s very likely that you’ll be staying alongside Australians at your hostel in Magnetic Island, and they could be of any age as well. Most of the hostels in the country do offer private rooms along with their dorm beds, so it’s common for people outside of their college years to book themselves a private room so they can still enjoy the lower prices and other hostel benefits, but still have some privacy as they sleep.

The Bungalow Bay Koala Village is a 100-bed facility located in Horseshoe Bay. They have a koala sanctuary on site so guests can observe them close up right from their rooms. Their cheapest beds are in their 8-bed dorms starting around $AUD27 per night, but they’ve also got private single and twin rooms for only a few dollars more per person. They’ve got a restaurant and bar onsite, as well as a swimming pool, but they are also just a short walk to the longest beach on Maggie Island.

The Travellers Hideaway is a popular hostel just 100 meters from the beach in Picnic Bay. They have dorm rooms with 3 and 4 beds (some for females only) starting around $AUD20 per person per night. They’ve also got double and twin rooms starting around $AUD25 per person, and of course singles can reserve the whole room for around $AUD50 per night.

Hostels in Magnetic Island