The backpacking trend may disappear after the Covid-19 pandemic

Backpacking trend

Around-the-world travel has been around for centuries. But it wasn’t until the 1950s and 1960s that backpacking became widely popular. An overland route between Europe and Southeast Asia, known as the “hippie trail,” became popular with young people eager to travel but on a budget. The trail’s popularity grew so much that Lonely Planet published its first guidebook, “Around Asia on the Cheap,” in 1973.

Backpacking is often associated with young people with big backpacks, staying in cheap hostels. They look for temporary jobs in the places they visit and connect with like-minded people to become travel companions. The rise of low-cost airlines has given budget travelers the opportunity to travel further, faster.

Kash Bhattacharya, founder of BudgetTraveller, describes himself as a lifelong backpacker. "Backpacking is a timeless concept. Nothing is difficult, every experience is accessible. I've been backpacking for 20 years now, and the sense of connection, humanity, and curiosity never fades no matter how old I get," Bhattacharya said.

Sadly, everything came to a halt in 2020 as Covid-19 forced most countries around the world to close their borders. According to the International Air Transport Association (IATA), airlines lost a total of $157 billion in 2020-2021.

The cheap flights that many backpackers once enjoyed may soon be a thing of the past. Many travel experts believe that more destinations will require travelers to provide coronavirus tests, which will be costly for those who prefer to travel on a budget and want to travel far and wide. So even when the world starts to move again, backpackers will be scrambling to find new ways to travel.

Backpacking budget

Although backpacking is a low-cost form of independent exploration, no one can deny that backpackers bring in a lot of revenue for the tourism industry. According to the World Student and Educational Travel Confederation (WYSETC), 45 million backpacking trips are taken each year. The average amount spent per trip in 2017 was $4,000.

Southeast Asia is one of the most popular destinations for backpackers. Thailand is probably the top name mentioned with more than 20 million visitors to the capital Bangkok every year - most of them converging on Khao San - one of the most famous streets for backpackers. The sleepless street is lined with bars, restaurants and street vendors... has been quiet for months, since Thailand closed its borders in April.

According to Bangkok Deputy Governor Sakoltee Phattiyakul, international visitors account for at least 90% of Khao San's visitors. The situation is so dire without foreign visitors that the government has launched the "Go to Khao San 2435" project to attract more people to the area.

But the question that many people are asking is whether a city like Bangkok, which was so crowded before the pandemic, really wants to welcome backpackers back?

Unwelcome guests

Backpackers have long been associated with bad behavior, and Australia, a top backpacker destination, appears to be taking steps to discourage them.

In 2017, a controversial "backpacker tax" was introduced in the country, meaning those arriving on working holiday visas could be taxed up to 15% - while Australian workers have a tax-free threshold of $12,500.

“Most destinations are focusing on the high-spending market segment,” says Denis Tolkach, assistant professor at the School of Hotel and Tourism Management at the Hong Kong Polytechnic University. “Backpackers tend to explore remote areas, buy products and interact directly with locals. But if they are too crowded, they can cause damage to the environment, culture and local communities due to their partying and bad manners.”

Another question is: With the impact of Covid-19, will destinations worry about backpackers and not welcome them back forever?

Stuart Nash, Tourism Minister of backpacker-haven New Zealand, has suggested that the land of the kiwis could target “high net worth” segments of customers in the future.

But Jenni Powell, president of the Young and Adventure Travelers Association, doesn’t see it that way. Jenni stresses that backpackers contribute to New Zealand in many ways, and in a positive way. Their contribution has been overlooked. Before the pandemic, young travellers made up 25% of visitors to New Zealand, adding $1.5 billion to the economy.

According to Jenni, backpackers are visiting more destinations across the country and staying longer, which is good for seasonal growth. She believes that backpacking will be the first form of tourism to recover after the pandemic is under control, as the younger generation is more resilient to the crisis.

A failing ecosystem

The 90-year-old Youth Hostel Association of England and Wales, a nonprofit with more than 150 hotels, says it generates more than $75 million in annual revenue. But in 2020 alone, its income dropped by 75% – the biggest challenge it has ever faced. The head of the organization says he has never had to close his entire network of hostels like he is now.

Meanwhile, many other small-scale, private motels have had to close, while others have dissolved permanently.

Mitraa Inn, a Singapore-based hostel, unfortunately falls into the latter category after more than 15 years in business. Co-owner Viji Jagadeesh had to pawn his jewelry to raise enough money to refund canceled reservations and did not even have enough money to pay the hostel's internet bill.

“Covid-19 has caused many hostels to go out of business,” Bhattacharya said. “Especially the smaller, independent ones, which in many ways represent the soul of the backpacker market. These hostels are not just a place to sleep, but represent the backpacker population in every city.”

Ray of hope

Another struggling entrepreneur is Will Hatton, founder of The Broke Backpacker blog and a backpacking tour operator in Pakistan, Iran and Kyrgyzstan. Business was doing well before Covid-19, leading him to partner with a backpacker hostel in Bali, Indonesia.

In 2020, Will had to cancel many of his planned adventure tours, refund customers, and provide financial support to local partners. He said 2020 was a really tough year for everyone in the travel industry. All of his business projects suffered heavy losses.

However, Will believes the worst is over, the world has invented a vaccine and the passion for travel is still very strong for many people. Will plans to open his hostel in March.

"I think Covid has given the world a chance to slow down a bit, reset and hopefully we'll come back stronger and wiser from this experience. I really miss backpacking and can't wait to get back on the road," Will confided.

Rosemary