Backpackers back in the Bay of Plenty; hostel owners delight

Tauranga hostel Wanderlust New Zealand's manager Davide Mantineo and owner Sarah Meadows. Photo / Mead Norton

There were times during the border closure when a Rotorua hostel was operating at 3 per cent capacity.

But if the last few months' bounce-back with backpackers is anything to go by, things are looking positive for summer.

The number of backpacker hostels in New Zealand has dropped significantly since the pandemic began and borders shut, but for those still operating, demand has been high over the last month.

The owner of Rotorua's Rock Solid Backpackers, Belinda Hargreaves, said visa holders looking to stay for longer than a few weeks struggled to find accommodation, and so building staff back up had been slow.

But occupancy was another story.

She had made the decision to remain open for domestic visitors during the border closure, and had been running at just 3 per cent occupancy.

"It's been terrible. It's been dire."

In the last few months, however, this had jumped up to between 60 and 100 per cent.

The first Kiwi Experience bus would be rolling through in the next few days, bringing with it 55 guests.

Rock Solid Backpackers in Rotorua on Hinemoa St. Photo / Laura Smith

She said the backpackers had been busy: "It's all looking very positive for summer."

According to Rotorua NZ's list of accommodation providers, of the 14 listed backpackers, two were operating, two were closed and 10 were listed as providing emergency housing.

Sarah Meadows, owner of Tauranga's Wanderlust NZ and Mount Maunganui's Pacific Coast Lodge, said they had been exceptionally busy since September, and occupancy levels at both of the hostels in October matched pre-Covid numbers.

"We were very excited and happy to reach that. It's given us great confidence going forward for the season.

"Our bookings are coming in thick and fast."

People tended to book for longer periods of time, which Meadows said was because they knew the beds were in hot demand.

Figures on the Ministry of Business, Innovation and Employment-funded Accommodation Data Programme showed there were 207 backpacker accommodation providers in the country in September, compared with 259 in September last year.

In the Bay of Plenty, there were 12 compared to 14 the year before, and in Rotorua there are five. There were eight in September last year.

This included both active and non-active providers.

Meadows said the hostels were 20 per cent occupied October last year. Now, occupancy was sitting at about 85 per cent.

It was a relief after the last few years, Meadows said, and they all had smiles on their faces.

"The vibe in the hostel is just incredible... it's back like the old days."

But it was not just the guests' return she was celebrating, but that they "finally" had a pool of staff.

"It is very much a working holiday visa type of job."

Tauranga hostel Wanderlust New Zealand's manager Davide Mantineo and owner Sarah Meadows. Photo / Mead Norton

Immigration Minister Michael Wood said at the end of October that more than 34,200 working holiday visa applications had been approved, with 14,400 visa holders arriving in New Zealand since borders re-opened.

As of November 5, 34,435 working holiday visa applications have been approved, with 15,637 holders arriving.

All the new visa holders will have open work rights, can work in New Zealand for 12 months with multiple entry rights, and must be in New Zealand by January 31, 2023.

Mount Backpackers owner Jo Veale agreed things had been busy since the Zespri AIMS Games in early September, and while there was normally a lull afterwards into summer, there had not been this year.

Generally, things were looking positive and "on the up", with the hostel full.

"It's wonderful - it's amazing to have the cultural diversity."

Rotorua NZ marketing manager and Rotorua-based Backpacker Youth Adventure Travel Association board member Haydn Marriner said backpackers were returning to the city in solid numbers and key suppliers were able to fill up buses and rental campervans.

The largest demographic was the 25 - 34 age group.

"With the steady flow of working holiday visas being utilised, we hope that we will see long-term, sustained growth from this extremely important sector to our visitor economy."

Tourism Bay of Plenty general manager Oscar Nathan said a few months ago it had felt like a novelty to spot someone strolling down the footpath with a large backpack on.

"It's been really rewarding to see these traveller numbers increasing, and we hope that the accommodation providers who experienced dire times while the border was closed will now be reaping the rewards of their resilience."

The youthful, adventurous and multinational vibe backpackers brought to the region was appreciated, he said.

"It's also become obvious just how much New Zealand needs these types of travellers - the seasonal or casual work they often do while they're here will help address the staff shortages that sectors like hospitality and horticulture are experiencing."