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With a permanent population of only a little over 1,000 residents, Rainbow Beach is not really what you’d call a city, but still this tiny area is a huge draw for tourists. One of the shortest crossings over the Fraser Island is just to the north of the village, and the whole area is popular for four-wheel drive enthusiasts as well.

There are quite a few hotels in the area and most are fairly expensive. There are also a few hostels in Rainbow Beach with very reasonable prices that make the area affordable for nearly any budget traveler. The hostels are bunched together in the village so each has a good location.

The famous Coloured Sands are within walking distance of the village, but there are tours and other ways to get out there as well. The village isn’t overloaded with pubs and bars, but there are a few places within walking distance of all the Rainbow Beach hostels. This touristy area also has several restaurants and gift shops, but the main focus of the town is as a gateway to all the local sights, most notably Fraser Island.

By the way, if you aren’t from Australia you should know that hostels in this country are almost always called “backpackers” even though they are exactly the same thing. And just as the hostel scene has changed around the world in the last couple of decades, it’s changing here as well. The days of daytime lockouts and nighttime curfews are mostly over. And age limits are hostels are rare as well. Most hostels in the country have private rooms for small groups along with their cheaper dorm rooms. This way people who are looking for a bit of privacy or added security can stay in a hostel while saving money and getting the added hostel services such as self-catering kitchens and internet usage.

And this area is popular with young people, but when staying at a hostel in Rainbow Beach you can expect to see different age groups. Older Australians and those in between have also discovered the national network of backpackers as a great way to travel more and save money.

Pippies Beachhouse gets high marks from previous guests and their cheapest beds are in their 4-bed dorm rooms, starting around $AUD18 per night. They have private twin, double, and triple rooms as well, with prices only a few dollars more per person. Breakfast is included in the bed price, and they’ve also got free bike rentals and fishing gear rentals.

Dingos Backpacker Resort also gets great grades from previous guests. They are a few minutes walk from the beach and close to everything else in the village. Their cheapest beds are also around $AUD18 per night in their 8-bed dorm rooms, and breakfast is included. Dingos also has private rooms, but prices are significantly higher than at Pippies. They’ve got two tropical swimming pools and they offer free trips to the Carlo Sandblow three times each day.

Hostels in Rainbow Beach