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Also besides Las Rmamblas and Reil Plaza is there any big pick pocket areas? I don't know about the particular hostel, but my wife and I walked around there last week. The area seems mainly populated by recent immigrants. There seemed to be a lot of unemployed young men hanging out on the streets. Yes, there were prostitutes at 7 pm on a Tuesday.. My wife, who is a street-wise person, said she didn't feel safe there, and suggested we walk away from there.
I thonk it is not really an unsafe area, although there are a lot of asian from Pakistan mainly recent immigrated people. I would define it as a "be careful" area. Pay attention to your belongings and don' t take your bank notes in your hand. In some places in this area there is street prostitution, but it is not really a security problem.
El Raval was the red light district years ago, today is mainly a 'new arrivals' area, but there are many nice places to hang out too, especially on the streets around the MACBA. Rambla del Raval is safe, I go there frequently as a friend owes a nice bar here. Always saw many policemen around at night. I would only avoid the area closer to the seaport. You can find prostitutes in many areas of the city, but if you ignore them, they will ignore you. Ha not that it matters but I'm oriental, perhaps I'll pass as a new immigrant.
I live in a major city and have walked by prostitutes with no real problem before. I guess as long as I'm not looking for trouble, it won't come looking for me. There are sneak thieves and pickpockets all over Barcelona, especially the lower end of Las Ramblas.