A slowdown in the tourism industry is having dire effects on the backpackers' business.
Holiday makers coming to New Zealand have dropped in the past year and though there has been an increase in the number of beds in the backpacking industry, backpackers aren't staying as long in New Zealand as they used to.
This has forced some business to reduce bed numbers, or even close their businesses entirely.
New Zealand has long been marketed as a romantic and fashionable backpacking destination. But that reputation is wearing off and the fame from The Lord of the Rings is becoming old.
Tourism experts say it is having a crippling impact on the tourism industry, especially backpacker accomodation houses.
Campbell Shepherd, Manager at Beyond Backpackers, which has 1200 beds all over the country, says the industry is struggling.
Bruce Robertson of the Hospitality Association of New Zealand says the slowdown has forced some places out of business. He says it is really taking its toll on small owner/operators.
Everyone seems to have their own theory on the reasons for the downturn, but most agree South America, and South East Asia are seen as a far cheaper travel destinations because of the recent high New Zealand dollar.
Rising airfares are also turning people away.
Daniel Shields from the Youth Hostels Association says there are now too many beds for the number of backpackers.
The slowdown is also affecting cheap bus tours.
Sean Murray of Tourism Holdings, which owns Kiwi Experience and a few other travel bus companies, says competitors are desperate for clients.
The industry is now calling for tourism promotors refresh the country's image on the international stage.
