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Selwyn Mall, Paihia, Bay of Islands, New Zealand, The Bay of Islands is a New Zealand enclave encompassing more than 140 subtropical islands next to the country's North Island. It’s known for its undeveloped beaches, big-game fishing and Maori cultural artefacts. Paihia is a town on New Zealand’s North Island. It’s known as a gateway to the dive sites and sandy beaches of the Bay of Islands