Peru: a better location for backpackers every year

(3 January, 2012)

Rain or shine, the independent travelers of different nationalities come and go in Cusco’s Plaza de Armas, its San Blas neighborhood, and even the famous La Chomba picanteria. Even though the stampede of North American and European backpackers happens in July and August, there is also a good flow of Latin Americans and Australians in December and January.

This is confirmed by Loki Hostels, a chain whose 250-bed hostel in Cusco has 80% occupancy during high season. “In 2011, the number of Europeans decreased due to the crisis, but the Latin Americans increased; in general, there are more every time,” said Jesse Ferguson, one of the partners.

What distinguishes backpackers from traditional tourists is that they don’t have a pre-established route, they don’t spend much per day, they take long trips (up to 3-8 months), and they seek to get deep inside the places they visit.

Alonso Franco, partner of Pariwana Hostel, says that one must get rid of the stereotype of the backpacker as a messy party animal. “The backpacker is a trendsetter. He explores the unconventional routes and makes them known,” Franco says. In the process of getting to know a culture, the backpacker often learns a language and even serves as a volunteer.

In the last five years, the number of backpacker hostels has increased both in Lima and Cusco. For example when New Zealander Jesse Ferguson partnered with two Irishmen and an Israeli in 2005 to open the first Loki Hostel in Cusco, he did because as a backpacker, he could not find the hostels that he was accustomed to in Europe: inexpensive, with areas to socialize and friendly customer service. “Maybe there were one or two, but no more than that.” Today, a search on Hostel World turns up about 30 such locations in Cusco.

Wild Rover Backpackers, which already had a hotel in La Paz with 180 beds, opened a similarly-sized hostel in Cusco a year ago. “We have a good climate, Machu Picchu is perfect, and we have had a warm welcome,” says Irishman Liam Morris, one of the partners. Wild Rover has also opened a hostel in Arequipa, because it saw potential in the region.

Meanwhile, Flying Dog, after having four establishments in Lima, opened a hostel in Cusco in the middle part of last decade, and it now averages a 70% occupancy rate. Later, it opened in Iquitos and Arequipa. While its Cusco locale catered to foreign clienele, in 2010 it changed its focus to also attract Peruvian visitors.

Other hostel owners have looked to grow their brand with locations along the backpacker trail. With this idea, Loki Hostels opened its second locale in Lima, its third in La Paz, Bolivia, later in Mancora, and next year it will open in Salta (nothern Argentina). “The locations feed aone another. We accompany the backpacker all along his route. We show him a route north and we strengthen our brand,” says Ferguson.