The closure of Kiwi YHA hostels is a massive blow to tourism.

Due to financial difficulties, the eleven hostels will close from December 15.

Haka Tourism has used the YHA hostels for its multi-day tours for the last few years.

General Manager Eve Lawrence told Kerre McIvor the YHA had an amazing holding in New Zealand, knowing what clients want and need.

“In some of the regions, this is gonna be a huge blow to the tourism infrastructure. And some of these new hostels like Tekapo, Mt Cook, Franz Josef — they're actually pretty lovely hostels.”

Lawrence says the company could offer a seven-day isolation package to international travellers to help the industry.

“But the problem is offshore partners and airlines simply just will not sell New Zealand when the rest of the world is open if people have to isolate for seven days. They just won’t sell us.”

She says the industry will be lobbying the Government to get rid of the isolation as it will still prevent many tourists coming to New Zealand.

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