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Hostels:

Koala Beach Resort (1800 800 421):
Top of Shute Harbour Road
The best of the three Koala hostels. Dorms here have a fridge, tv with cable television, air con and are ensuite. The kitchen isn't the biggest but there is a large outdoor eating area. Also on the grounds is a decent sized pool and a volleyball court. Tour bookings may be done from the hostel which is a bonus. Dorms of 6 are priced at $20 a night

Beaches Backpackers (1800 636 630):
362 Shute Harbour Road
With one of Airlie Beach's biggest bars located next door, this is definitely a party hostel. Like Koalas, all rooms here have all the mod cons. If you want to be right in the middle of the action this is the place to be as it is right in the middle of Shute Harbour Road. You won't have too far to walk/stumble home if you end up getting very drunk! Beds in dorms of 5/6 cost $20

Reefo's (07 4946 6137):
147 Shute Harbour Road
Even though there is a small bus journey out of Airlie Beach to get here, Reefo's is a surprisingly popular backpackers in Airlie. This is mainly due to the cheap rates, free courtesy bus to and from the hostel on the hour, and it's space. Don't worry about having to go into town for beer as there is a fairly big bar on the premises, as well as a pool. Prices vary from $5.90 ($7.90 with breakfast) in dorms of 6/8 to $14 in dorms of 6 with ensuite, fridge, fan, air-con and tv/cooking facilities