A Turangi holiday park owner claims he has been dropped from the Youth Hostel Association for allowing a gang member drug rehabilitation course to be held at the facility.
Six gang families began a seven-week drug and alcohol rehabilitation camp run by the Salvation Army this week.
The owner of Club Habitat, Greg Marks, says there is 24-hour security and other guests are warned about the programme before booking in.
Youth Hostel Association chief executive Mark Wells says its decision not to renew its contract with Club Habitat has nothing to do with the programme.
Mr Wells says it has an oversupply of hostels in the central North Island.