The Transit Centre Backpackers Hostel in Hobart, Tasmania will close next week:
HOBART will lose another 60 backpacker beds with the closure of the Transit Centre Backpackers next Saturday.
The building it occupies at 199 Collins St has been sold to Hobart developer Stanrock Pty Ltd.
With Allports Backpackers in North Hobart, also 60 beds, having closed last year, Transit Centre Backpackers owner Dan Ruddock believes another closure will have a significant impact on budget travellers.
"There will be a shortage during summer," he said.
Mr Ruddock, 30, has had the business for 2 1/2 years.
Trading figures had shown an increase of 10 to 15 per cent in tourists each year.
Although it was slow in winter, summer tourism season occupancy was about 90 per cent.
Budget Bunks, above the Ocean Child, also closed its accommodation in December when ownership changed.
Central City Backpackers in Collins St has 180 beds -- the largest in town.
Hobart Hostel, at Barrack and Goulburn streets, has 95 beds.
YHA Backpackers in Argyle St has 50 beds.
Narrara Backpackers in Goulburn St has 55 beds.