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7 Best Backpacker Hostels in Te Anau & Milford Sound šŸŽ’ [2024]

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The Best Accommodations in Te Anau and Milford Sound for Backpackers

Where can you stay on a budget in the Te Anau and Milford Sound area? Milford Sound is famous for its stunning scenery, but it’s also famous for an incredibly long drive to get there, especially from Queenstown. Why not stay closer to Milford Sound by staying in one of these backpacker hostels in Te Anau and Milford Sound?

What to Do in Te Anau and Milford Sound

There’s so much more to explore in the Fiordland National Park than just a Milford Sound cruise. Make the most of your stay in Te Anau and Milford Sound by stopping at all of these 15 Stops You Can’t Miss on the Road to Milford Sound. There are also heaps to do in Te Anau too, such as these 5 Incredible Multi-day Hikes in the Fiordland National Park.

Alternative Accommodation in Te Anau and Milford Sound

So here are what we consider some of the best backpacker hostels in Te Anau and Milford Sound. For alternative accommodation, see the 10 Best Accommodations in Milford Sound or the 10 Best Budget Accommodations in Te Anau.

1. Te Anau Lakefront Backpackers

Swap hostel dorms for glamping tents at Te Anau Lakefront Backpackers! That’s right, you can book a bed in one of the hostel’s large four-bed glamping tents or, you know, one of the standard but cheaper dorms in the main building. What’s more, the backpackers has a central location in town and to the Fiordland National Park and Lake Te Anau activities. In between adventuring and, well, sleeping, relax in the movie room, mingle in the gardens and enjoy extra space between the indoor and outdoor kitchens. There are private rooms here too, but you can read more about those in the 10 Best Budget Accommodations in Te Anau.

Check Te Anau Lakefront Backpackers out:

5 Best Backpacker Hostels in Te Anau & Milford Sound šŸŽ’ [2023]© Te Anau Lakefront Backpackers

2. Bob & Maxine’s Backpackers

On the edge of Te Anau town, Bob & Maxine’s Backpackers is a spacious and well-equipped backpackers with everything you need for an affordable and, more importantly, fun stay! There’s a warm and friendly vibe here, helped by your gracious hosts, while there are comfortable places to relax – the fireplace in the main lounge is a popular hangout. As for rooms, most are shared dorms while a private double room is also available. Remember to make use of the BBH discount and check out the nearby alpaca farm that has been entertaining guests for years.

Check Bob & Maxine’s Backpackers out:

5 Best Backpacker Hostels in Te Anau & Milford Sound šŸŽ’ [2023]© Bob & Maxine's Backpackers

3. Barnyard Backpackers

Experience a bit of Kiwi country living at the Barnyard Backpackers, a homely hostel situated just a short drive from Te Anau town centre. Barnyard Backpackers offers some excellent views of the surrounding hills while having all the necessities for a budget-friendly stay: WiFi (limited), a spacious kitchen, pool table and more. While the hostel has the usual mixed dormitories, those wanting more privacy can choose from double, twin, triple and family rooms, some with an ensuite bathroom, while the rest use shared facilities.

Check Barnyard Backpackers out:

Barnyard Backpackers© Barnyard Backpackers

4. Te Anau Central Backpackers

The new kid on the block, Te Anau Central Backpackers boasts a super central stay (like the name suggests) for an ultra-affordable price. It’s the largest hostel in town and has vast social spaces to match, including a communal kitchen, a lounge with a roaring fireplace, a TV room, an outdoor courtyard with a barbecue and expansive gardens. Dorms range from two to eight beds, with the option of mixed or female-only, while more privacy can be found in the single, twin, double and quad rooms. Most rooms have shared bathroom facilities, while there is also a private double ensuite.

Check Te Anau Central Backpackers out:

6 Best Backpacker Hostels in Te Anau & Milford Sound šŸŽ’ [2023]© Te Anau Central Backpackers

5. Possum Lodge (Manapouri)

A unique location on an arm of land teetering between Lake Manapouri and the Waiau River, Possum Lodge offers a characterful stay for backpackers. The backpacker cabins with dorm beds, private cabins, motel units and campground are nestled in native forest where you can wind your way through to the sandy lakeshores. You have all of your usual shared hostel facilities, including a well-equipped kitchen, lounge and bathrooms, so there’s really no reason not to try this place out! For more camping options around Te Anau, check out the 5 Best Holiday Parks in Te Anau.

Check Possum Lodge out:

5 Best Backpacker Hostels in Te Anau & Milford Sound šŸŽ’ [2023]© Possum Lodge

6. Te Anau TOP 10 Holiday Park and Motels

Te Anau TOP 10 Holiday Park makes it all too easy with its central location in Te Anau. The holiday park is within walking distance of supermarkets and cafes yet less than 10 minutes’ walk from the lakefront. Among the holiday park’s motel units and cheap private cabins is a 10-bed backpacker dorm, as well as powered and non-powered camping sites. Guests will have access to a communal kitchen (use your own cooking equipment or hire them from reception), free WiFi, a children’s playground, free barbecues and more. If you are travelling with kids, you might also like to look at the 10 Best Family Accommodations in Te Anau.

Check Te Anau TOP 10 Holiday Park out:

5 Best Backpacker Hostels in Te Anau & Milford Sound šŸŽ’ [2023]© Te Anau Lakeview Kiwi Holiday Park & Motels

7. Milford Sound Lodge

As the closest accommodation to Milford Sound, Milford Sound Lodge couldn’t be more convenient for exploring the Milford Sound area. They even have a free shuttle to take you down to the waterfront. Milford Sound Lodge has all types of budget accommodation from powered sites for campervans with lodge facilities to private studio rooms (however, there are no longer dorm rooms here, so this is only suitable for the backpacker budget if you’re camping). By being surrounded by Fiordland forest, expect regular visits from kea parrots and wake up to the sounds of native birds. For more options around Milford Sound, including much cheaper campsites, check out the 11 Best Accommodations in Milford Sound.

Check Milford Sound Lodge on:

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In the centre of Te Anau, YHA Te Anau is ideally located to all the local services. Make use of the free Wi-Fi and fresh herbs from the edible garden. Remember to use your YHA discount if you are a member. More information on that can be found in BBH, YHA, BASE or NOMADS: What is the Best Hostel Network?

[CLOSED] Gunn’s Camp

Gunn’s Camp is a characterful camp that features in our 13 Most Unique Backpacker Hostels in New Zealand. The camp, with backpack-style bunks in cabins, is down the Hollyford Road just off the Milford Sound Road. In the heart of Fiordland National Park, enjoy the isolated serenity the camp has to offer.

More About Te Anau for Backpackers

That’s it for our list of the best backpacker hostels in Te Anau and Milford Sound. For more about planning an epic trip to this stunning corner of the world, check out more of our advice:

Finally, if there’s anything we’ve missed, you’re likely to find it in the Fiordland National Park – Guide for Backpackers.


The information in this guide has been compiled from our extensive research, travel and experiences across New Zealand and the South Pacific, accumulated over more than a decade of numerous visits to each destination. Additional sources for this guide include the following:

Our editorial standards: At NZ Pocket Guide, we uphold strict editorial standards to ensure accurate and quality content.

About The Author

Robin C.

This article has been reviewed and approved by Robin, who is the co-founder of NZ Pocket Guide. With more than 15 years of experience in the New Zealand tourism industry, Robin has co-founded three influential tourism businesses and five additional travel guides for South Pacific nations. He is an expert in New Zealand travel and has tested over 600 activities and 300+ accommodations across the country.

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