According to Queensland News Mail, plans for the Gin Gin hostel have been approved despite concerns from local residents about noise levels.
Presenting the plans, local councillor Ross Sommerfeld said the 192-bed accommodation would give the area a "confidence boost" and support the region's agricultural industry.
Speaking at the same council meeting, mayor Lorraine Pyefinch suggested the hostel will help farmers attract seasonal workers.
"Previously they had to source those workers either from Bundaberg or hope that they can find some accommodation temporarily for them in Gin Gin."
"This new development will certainly offer the growers in the area a source of labour that will be much easier to find," she added.
Local tourism site Bundaberg Region claims the area is an ideal stop for backpackers.
"Clean stinger-free beaches, oceanfront accommodation and cosmopolitan cafes" are just some of the attractions said to be on offer.
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