Kiwis get world's first backpacker chain

By Graeme Kennedy

Friday 14th June 2002

Global hotel group Accor will use a mix of new developments, management agreements and leases to develop the world's first backpacker chain in New Zealand.

Accor country general manager Neil Scanlan said New Zealand had been chosen as the company's international testing ground because it was a mature market perceived as a safe destination showing strong growth. The group would take the concept to Australia after it was established in New Zealand, Mr Scanlan said, and eventually spread to other parts of the world popular with back-packers under a global branding yet to be named.

The first property, in Fort St in the Auckland CBD, would open under a management agreement with an existing hotel in October with 435 beds including 40 en suites followed by a building purchased for development in Wellington's Cambridge Tce and a leased existing hotel in Rotorua.

"We see an immediate need to open in Queenstown and Christchurch and we are seeking other opportunities as long as they meet our criteria and have growth potential," Mr Scanlan said.

"New Zealand, as our global test bed, gets 80,000 back-packers a year through Auckland and 13,000 through Christchurch. It is a resilient market, showing no slump after September 11 and we expect continued growth in the future.

"Backpacking has the biggest growth of all tourism sectors to New Zealand."

Mr Scanlan said Accor feedback from backpackers indicated many existing hostels were below the standards they wanted, which included security, cleanliness and social experience. "We believe we can deliver on all those issues," he said. "And we are not going head-to-head with the Youth Hostel Association - they do not have restaurants or bars, which are very important to our product."

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