Cromwell Backpackers has officially closed adding further pressure to the already stretched temporary accommodation market in the town.

After seven years in business, Darren Fox was forced to shut the doors of the 20-bed backpacker, when the terms of the ongoing lease with his landlord were not renewed.

Facing up to $10,000 rent increases in the back of the Cromwell Mall, he said the landlord had plans to sell the building and effectively told him to vacate.

Initially gutted to be moved on from his business, not to mention the hard task of telling his tenants they no longer had a roof over their head, he has since put new plans in place to offer something bigger and better.

“It doesn’t matter - at the end of the day I want to start something new,” he said.

Plans are underway to lease a site in McNulty Rd, along with 20 cabins, where he hopes to continue offering accommodation at the lower end of the market - for seasonal workers and others needing a place to stay short term.

Darren will meet with the Central Otago District Council this week to see what consents he needed for his ‘workers accommodation’, which he understood was a lot simpler than for travellers accommodation.

He said initial indications from council indicated he could be hit with developer contributions of between $70,000 and $80,000, which would not make his business viable.

He has also approached MP Miles Anderson, who he plans to meet next month, as part of a group in the town looking at providing more low cost accommodation.

Harvest Park Studios in Cromwell also offers worker accommodation, but at the higher end of the market, and have now opened up their business to include all sectors of the market.

Darren is eager to push on with his new plans as he enjoys dealing with people from all walks of life.

“You are like a counsellor some of the time for those who are staying, and dealing with their problems, but also there are just so many beautiful people out there who are travelling, that have left their country to explore New Zealand.”

He’s met nuclear engineers, doctors and young people from all over the world, and hopes that his new business will continue to provide that level of service to enable people to stay in Cromwell - particularly over the fruit season.