a lot of countries consider backpackers to be undesirable as well because they don't spend very much money. Hostels are a dying thing and when I revisit the places I went to 10 or 20 years ago there are almost no hostels at all. Instead there are party bunkbed sorts of places where people will spend a hundred dollars a day, mostly on booze. I drank a lot when I was backpacking too, it's a big part of it, but it wasn't the primary goal. I hope that the youth today are seeking out adventure but I almost never meet any young people that are gap-year traveling anymore but this could also because I am in my 40's and don't really interact with that demographic a great deal anyway.
RE: The relative death of backpacking