A dress up party at the Rotten Apple Backpackers. Photo / Supplied
A dress up party at the Rotten Apple Backpackers. Photo / Supplied
The "heart of budget tourism" in Hastings will shut its doors this week with its long-time owner saying rent increases during Covid times were what had rocked it to its core.
Jason Heard, who took the reins of The Rotten Apple, the Heretaunga St West institution, in 2008, said itwas a tough decision to make, but it was not economically viable to keep open.
"It's a huge icon in Hastings, the heart of budget tourism and it's sad to be closing down," Heard said. "We will miss it."
Heard said the reasons for shutting the backpackers, located in Hastings CBD at Heretaunga St West, were two-fold.
"We had a 15 per cent rent increase - that's massive.
"We also had a rates increase, insurance has gone up. It's just really stressful and we have struggled.
"I've lost all my personal savings just to stay afloat, I've run out of savings. My capacity to earn money has gone. We are purely surviving right now."
He said he and his family will move to a share house which they own, which is currently housing about 10 backpackers, including the ones from Rotten Apple.
"We might have to ask the Government for some assistance," he said.
"But we will be closing down the backpackers at the end of the week."
Rotten Apple Backpackers owner Jason Heard is sad to close down the iconic backpackers. Photo / Supplied
He said the backpackers was well-known throughout Hawke's Bay.
"This place has been very famous. Last year we won at the Blossom Parade Festival," he said.
"We have also provided work for backpackers, and supplied labour to growers in the region."
Hastings District Council mayor Sandra Hazlehurst was saddened by the closure.
"The Rotten Apple Backpackers have been part of our central city for a long time," she said.
"As well as hosting much-needed pickers for our orchards, backpacker accommodation adds vibrancy to our city; with people from across the world sharing their different cultures and life experience with our residents.
"It has been such a tough time for all of our casual accommodation providers since the borders were closed at the start of our first lockdown last year. It is, without doubt, a very difficult time for them."
The Rotten Apple Backpackers will closing by week-end. Photo / Warren Buckland
Hawke's Bay Tourism chief executive Hamish Saxton said he understood the strain placed upon backpacking accommodation.
"Prior to Covid-19, backpacker properties were key accommodation providers for young, international travellers, and this market has since evaporated," Saxton said.
"A number of our region's backpacker properties have had to open to other markets or reinvent themselves."
Archies Bunker in Napier opened Enigma Escape Rooms in August last year after international tourism stopped. A year on it told Hawke's Bay Today that it was the part of the business that was thriving.
Saxton said the lack of international tourism was a challenge which was being faced nationally with backpacker occupancy rates at 34.5 per cent nationwide for the 12-month ending July 2021.
In Hawke's Bay, during the same period, backpacker occupancy rate was 37.7 per cent, he said.
"We feel for all businesses involved in tourism that previously had a reliance upon international visitors. They are working within a very challenging environment."
