Located in the Lesser Sunda Islands, just to the east of Java, Bali is Indonesia's best-known and most popular touristic destination. In recent decades, the numbers of tourists flocking to Bali have skyrocketed, making this island province one of the most desirable vacation locations on the planet. Tourism actually counts for around 80% of Bali's entire economy, and this island has been consistently ranked by both leading travel experts and casual tourists as being in the top 10 travel destinations of all.

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The province is home to around 4.2 million people in total and gets several million touristic visitors each year, with many tourists spending the majority of their time on the island's beautiful beaches like Kuta Beach or exploring beautiful natural areas and landmarks like Mount Batur and the Gitgit Waterfall. Bali is also home to some beautiful old temples like the Tirta Empul Temple, the Pura Taman Ayun, and the Ulun Danu Temple, as well as the Sacred Monkey Forest Sanctuary.

There's plenty to do and enjoy all around Bali, and believe it or not, a trip to this Indonesian island doesn't have to be too expensive. Bali is known for its world class resorts and hotels, but it's also home to some very affordable hostels, perfect for backpackers and travelers on a budget. Read on to learn all about a few of the best hostels in Bali and start planning your trip today.

- Lokal Bali Hostel - Jl. Kediri No.93, Kuta, Kabupaten Badung, Bali 80361, Phone: +62-36-14-75-37-07

Situated down in Kuta, not far from Balis' main international airport and very close to the big city of Denpasar, Lokal Bali Hostel stands out as one of the top hostels in all of Bali for its prime location and excellent facilities. You'll find a lot of great shops and eateries right around the corner from this hostel, and it's within walking distance of some super beaches like Kuta Beach too. In short, it's a super spot to experience all the magic of Bali without needing to travel or get around on public transport.

Lokal Bali Hostel provides both private rooms and dorms. The dorms are nicely laid out, with pod-style bunk beds with their own private reading lights and privacy curtains, along with storage solutions for each guest too. The shared bathrooms are exceptionally clean and kept to a very high standard, and you'll also find a large TV lounge area and an outdoor swimming pool at this Bali hostel, which also provides free breakfast for its guests in the mornings.

- Kayun Hostel - Jl. Patih Jelantik No.176, Legian, Kuta, Kabupaten Badung, Bali 80361, Phone: +62-3-61-75-23-70

Another great Bali hostel, Kayun Hostel is also situated in Kuta, so it has easy access to the international airport of Bali, as welll as all the shops, restaurants, and attractions of areas around Kuta and Denpasar like Kuta Beach and the Waterborn Bali water park. This is also one of the most affordable hostels in the area, with incredibly low room rates available at Kayun Hostel.

As well as being one of the best options for people on a budget, this Bali hostel is also one of the cleanest and most nicely decorated. The private rooms and dorms are all fitted out with good quality furnishings and decorated with nice colors to provide a warming, homely vibe throughout the building. All guests will be able to use the hostel-wide Wi-Fi to keep up to date with happenings around the world and stay in contact with their friends and family via email and social media. You'll also find an open-air cafe at this hostel, as well as a spacious yard area with a wonderful swimming pool and plenty of sun loungers too.

- The Farm Hostel - Jl. Pantai Batu Bolong No.29, Canggu, Kuta Utara, Kabupaten Badung, Bali 80361, Phone: +62-8-13-39-66-16-67

Situated up in Kuta Utara, only a short trip from the main airport of Bali, The Farm Hostel is another of this island province's best-rated hostel locations. This hostel really stands out for its beauty and vibe; it's surrounded by rice fields and trees, helping to provide scenic views and a very peaceful atmosphere, simply perfect for guests who are heading to Bali to relax and rejuvenate. It's only a short walk from the beach too, with both Canggu Beach adn Batu Bolong Beach nearby.

You'll find standard hostel dorms at this location. The dorms feature comfortable wooden bunk beds with pod-style privacy barriers and private curtains for each guest. You'll also get a little reading light up by your pillow, as well as access to various storage drawers and areas to keep your luggage safe. There's a big open-air dining area with lots of picnic tables at this Bali hostel, as well as a communal kitchen, a lounge, and a swimming pool with comfortable sun loungers beside it.

- Lay Day Surf Hostel - Jl. Batu Mejan No.14B, Canggu, Kuta Utara, Canggu, Kuta Utara, Kabupaten Badung, Bali 80361, Phone: +62-8-12-38-74-34-11

Another great hostel location for your next trip to Bali, the Lay Day Surf Hostel is situated in Kuta Utara, a little further up the coast from the other hostels on our list in a more quiet and relaxed part of the island. The hostel itself is situated on a really quiet little street lined with trees and vegetation, but it's quite a lively location, with friendly people always waiting to greet you and plenty of travelers from all over the world stopping off here on their tour around the island province.

As the name suggests, the Lay Day Surf Hostel has a special place in the heart of surfers and is conveniently located near some of the top surfing spots in Bali like Batu Bolong Beach. There are both mixed and female-only dormitories at this Bali hostel, which features not one, but two outdoor swimming pools for your enjoyment. You'll also find hammocks and sun loungers dotted around the place, as well as an on-site bar.