If you plan a trip in the middle of nothing this is the right place to stay, but if you'd like to spend a nice time in Visby forget about this hostel.
The web-page says that the hostel is 10 minutes walking from the closest bus stop, the problem is that if you arrive in the evening there is no one light: we walked completly in the dark for 20 minutes. Buses in the morning are not very often, so prepare to stopping car asking for a lift to go in the city.
The hostel is not even very clean and nice, breakfast is for 10€!
If you wanna go to Visby try something different, inside the city maybe.