Bad Hofgastein is a market town in the district of St. Johann im Pongau, in the Austrian state of Salzburg. The spa town is located in the Gasteiā¦Bad Hofgastein is a market town in the district of St. Johann im Pongau, in the Austrian state of Salzburg. The spa town is located in the Gastein Valley, a large ski resort belonging to the Ski Amadé network.