Katikati no longer has a budget accommodation option in town for travellers with Wanderlust Backpackers closing its doors on January 20. Merle Foster reports.
Owner-operator Scotty Miles had to call it quits after a number of factors had impacted his business which mainly saw backpackers stay and work in Katikation a temporary basis.
Mr Miles' woes began when a flood washed through Wanderlust on Katikati's Main Rd in February 2009 and closed the facility for six weeks for clean up and repairs - this meant much-needed income was lost on the cusp of the kiwifruit season.
Wanderlust was the only backpacker facility in Katikati and mainly serviced foreign workers coming to the area to pick kiwifruit and avocados.
A hail storm that hit kiwifruit growers in May 2009 had flow-on effects for the backpacker business as there were fewer seasonal workers required.
But Mr Miles said the final straw for his struggling business was last November's outbreak of the kiwifruit vine disease, Psa.
"Pretty much all the factors involved were related to nature and they all contributed to kiwifruit orchardists' costs and decisions not to employ as many backpackers on their properties," Mr Miles said.
"Their incomes were less and they didn't have the revenue to employ casual staff and this affected how many stayed at Wanderlust."
At the height of the kiwifruit season Mr Miles said he would normally have 46 people staying at Wanderlust for three to four months - but he couldn't sustain the business through to the new kiwifruit season that will begin next month.
"I had rent, insurance and running costs and I needed at least 15 to 17 backpackers to stay at Wanderlust each day to pay the bills."
Mr Miles said the worldwide recession also played a part in the downturn of his business with travellers looking at other accommodation options to stretch their dollar further.
However, Mr Miles said he believed that Katikati still needed a backpacker accommodation.
"Our town still needs one - I had up to 65,000 guest nights purchased over the four years I had Wanderlust and that generated a lot of money for the town, even if each backpacker spent only $10 a day while here."
Mr Miles, who rented the building on the corner of Beach Rd and State Highway 2, is now trying to sell the contents.
