An "extreme terror tour" of the Australian forest where a notorious killer buried seven backpackers in the 1990s was attacked on Tuesday as "horrendous" and insensitive to the families of the victims.

Goulburn Ghost Tours was advertising a small number of nighttime visits to Belanglo State Forest, where Ivan Milat dumped the bodies of two Britons, three Germans and two Australians over 20 years ago.

Milat is serving consecutive life sentences for the murders of the young travelers, which created terror in Australia in the early 1990s. Their remains were found in Belanglo, about 120 kilometers southwest of Sydney.