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Of course you are free to stay anywhere you like, we cannot force you to stay in the Mercure Hotel! However when comparing accom. costs for the recently concluded Championships in Adelaide it added up as follows:
$40 per night for the cheapest student accommodation
$10 breakfast
$10 per day entry to tournament ($110 entry to tournament)
Total $60 per night
Compare this to the 4 ½ star accommodation at Buller for $50 per night ($660 / 13) with all you can eat breakfast and the tournament entry and it’s looking reasonably good. That is with 3 per room, and if you want more comfort (say 2 per room) it will only be about $70 per night. Billeting is much rarer than you might think, and there will be cheap options available, so I don’t think it will make much difference on the junior front.