The movie 'Hostel' is not based on a true story. It's a work of fiction designed to thrill and scare audiences through creative storytelling rather than real-life incidents.
Yes, it is. The idea behind 'Hostel 2' being based on a true story is that there are reports of some truly heinous and immoral activities in certain parts of the world. But the movie takes these concepts and runs with them, adding in all sorts of gory and terrifying details that are designed to shock the audience. It's not a documentary, so while it has roots in reality, it's mainly a work of horror fiction.
Well, 'Hostel' is indeed based on a true story. The director got the idea from tales he heard about certain hostels in Europe where travelers had some really terrifying encounters. But in the movie, a lot of elements were added to make it more of a horror - thriller, like extreme violence and gore that might not have been exactly as in the real incidents.