Newcastle's three major backpacker establishments reported they were "run off their feet" with a constant influx of guests coming and going.

Newcastle Beach YHA manager Damian Parkhouse said every bed was booked out for most of January and 99 per cent of guests were internationals.

He said backpackers from all over the world frequented the hostel but while England traditionally provided the biggest supply of visitors to the Hunter, German visitors had recently surpassed them.

"It always used to be the Brits but now the Germans have taken over as the country with more backpackers coming to the Hunter than any other."

Mr Parkhouse said the recent offering of the work-holiday visa, available to English travellers for many years, to German visitors has made Australia, and in particular the Hunter, an appealing option.

German backpacker Julian Wormsbaecher has been in Newcastle for two weeks and plans to stay longer if he can find work.

"It's so beautiful here, I've been fishing and going to the beach every day," Mr Wormsbaecher said.

" I've already made friends with some locals."

He said he was fishing with fellow backpacker Olim Tuyt of Holland, when they began talking to a Newcastle couple who invited them over for dinner.

"The people here are so nice, they cooked us dinner and everything," Mr Tuyt said.

"I love Newcastle, it is much better than busy, crowded Sydney."

French backpacker Louise Moya has also come to Newcastle to fish but has no need for a rod.

The 25-year-old arrived two weeks ago in pursuit of eligible bachelors, which she claimed there was no shortage of in the city.

"I was attracted to Newcastle by the local men of which I'd heard good things and I'm definitely not disappointed," Ms Moya said.

Backpacker operators said surfing, swimming, and Hunter Valley wine tours were among the most popular activities for tourists.