The Star: November 19, 2020

The Star Thursday November 19 2020
12
NEWS
Latest Canterbury news at starnews.co.nz
Hostels face summer without backpackers
• By Chris Barclay
BACKPACKERS often lead a
hand-to-mouth existence, and
now hostels that accommodate
them are facing a similar
predicament in Christchurch
with closures likely.
Hostels usually welcome an
influx of overseas backpackers
this month, but the Covid-19
pandemic has heaped more pressure
on a tourism sector still recovering
from the Christchurch
earthquakes.
Urbanz Accommodation
Christchurch manager and
part-owner Paul Crooks shared
a grim outlook as the city’s first
summer without significant
numbers of backpackers beckons.
“There’s usually 50,000 (backpackers)
in New Zealand over
the summer months. November
is the peak month for arrivals
on working holiday visas and, of
course, there’s zero coming now,”
he said.
“Closing is definitely getting
higher up the list of options. We
only survived winter because of
the wage subsidy.
“The backpacker industry can’t
survive when we’ve lost 80 per
cent of our customer base.”
Crooks and an Australia-based
co-owner purchased the former
YHA premises on Manchester St
five years ago. It can house 170
people and usually has a staff of
14 over summer.
“We had a couple of backpackers
leave when their visas expired
so we haven’t had to lay off any
staff yet, but everyone’s on reduced
hours,” he said.
Crooks lamented the end of
the government’s wage subsidy
and appealed for it to be reinstated.
“Australia, Canada and the
UK have extended their wage
subsidy, the New Zealand government
have thrown us to the
dogs really,” he said.
“It’s grossly unfair because the
HARD TIMES: Urbanz
Accommodation
Christchurch co-owner
Paul Crooks has grave
fears for the backpacker
industry unless it receives
more government support.
(Right) Around the World
Backpackers on Barbadoes
St was deserted yesterday,
PHOTOS: GEOFF SLOAN
worst-affected industries have
lost all support. They gave out
the wage subsidy to everybody in
the early days and most of those
industries have simply bounced
back and made huge profits.
“Retailers had a very temporary
downturn in their sales, our
downturn has carried on continuously
and it’s getting worse
because the borders remain
closed. Hostelworld (backpacker
website) said their bookings in
Christchurch are down 90 per
cent this month.”
Crooks was aware the Dorset
House Backpackers has temporarily
closed and said others are
only taking weekly bookings to
stay afloat. Slashing rates was
also a necessity.
Pip Bradford has run the
Around The World Backpackers
on Barbadoes St for three years
but worries if the venture will
last another six months.
“We can’t pay our full lease
every month, we’ve been on a
reduced lease since Covid hit,”
she said.
“Times have been so, so tough.
The intention is for us to pay
it back but I don’t know when
that’ll be. We’re barely making
ends meet.”
The hostel takes a maximum
of 38 travellers and was currently
“half full if that”, said Bradford,
who is aware some owners are
trying to escape the industry.
“I know there’s been a few
places that have been trying to
sell, I don’t think they’ve had
much luck,” she said.
Crooks also bristled at suggestions
from Tourism Minister
Stuart Nash that operators reset
during Covid-19 and target highspending
visitors rather than
backpackers.
“I firmly believe that the lowspending
but high-cost tourist
is not the future of our tourism
industry,” Nash said.
In response Crooks said: “He’s
completely wrong. Backpackers
actually spend the most money
in the country because they stay
for weeks and months. They are
the high-value tourists.
“They’re the ones that spread
out around the whole country,
they are the ones who support all
the local communities.”
Jenni Powell, general
manager of tourism industry
specialists VisitorPoint agreed:
“International youth represent
almost a quarter of all holiday
arrivals and generate $1.5 billion
in foreign exchange earnings,
which is higher than any other
age demographic.”
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