The Aborigines from a remote community taking lifesaving classes in the central Australian town were allegedly asked to leave the Haven Hostel after checking in because of complaints by other guests, ABC Television reported tonight.
The hostel's management later said the mostly young leaders' program members from Yuendumu were not allowed to stay because the hostel catered specifically for international backpacking tourists.
But society chief executive Rob Bradley said the hostel was guilty of "pure racism".
"It was a very feeble excuse about a complaint having been made but looking into that, there was no compliant, there was no reason, it was just pure racism," Mr Bradley said on ABC Television.
"(There's) total shock and dismay that something like this can happen in Australia today.
"It was just an absolute disgrace."
The group of mostly women were taking the classes in preparation for the opening of a swimming pool in Yuendumu, located about 300km northwest of Alice Springs.
"They said that it was because of the colour of our skin and they didn't like us," group member Bethany Langdon said of the hostel management.
Fellow member Sharelle Young said: "They should apologise to us face-to-face and just say sorry".
The Haven Hostel released a statement saying: "Haven Hostel is a backpackers' hostel catering for international backpacking tourists, which the group was not".
"So (alternative) accommodation was sought and arranged with their consultation, on their behalf. We also offered to pay for that night's accommodation."
The group found another place to stay in Alice Springs to complete the training, the report said.
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