The Youth Hostel Association of New Zealand (YHA) is to close all eleven of their hostels as of 15 December, after 89 years as a staple of the tourism landscape.
The New Zealand chapter of Hostelling International has said that they had "no option but to permanently close the doors".
With a significant shift towards budget domestic travellers and family groups, the company were able to double their domestic bed nights during the Pandemic. However, the YHA National Board said that this was not enough to offset the loss of international backpackers for almost two years.
After 19 months of severe restructuring and faced with the prospect of another summer without international tourists, the YHA will not be reopening in 2022.
"YHA staff have been incredible during extraordinary times" said GM Simon Cartwright, "It is an ending none of us wanted but we want to make sure we exit in a way which ensures our people are not left out of pocket."