Rainbow beach is one of Queenslands most popular destinations for backpackers and there are plenty of budget hostels. Rainbow beach is the southern entry point and departure point for tours onto Fraser Island. As fraser island is on the agenda for virtually every backpacker coming to Australia, Rainbow Beach has become a gathering point.

Rainbow Beach Lies to the north of Noosa and to the south of Hervey Bay. many of the motels and hotels in the town have been converted to hostel accommodation and the hostel operators all offer Fraser Island tours. Four wheel drive vehicles are also available for hire.

Rainbow Beach accommodation is also available in apartments and resorts, however the price will be higher.