KEY POINTS:
How has the credit crunch changed your world?
At Ellerslie, we have three key strings to our business model - racing, the event centre and property. Each of these has been affected differently.
The racing industry has struggled with its off-course betting nationally, with turnover down between 10 per cent to 15 per cent, yet on course Ellerslie has had a very strong year, with excellent results from our major days built around the New Zealand Herald Christmas Carnival, Lindauer Melbourne Cup Day and our Lindauer Twilight Summer Series.
The event centre has found the going a lot more difficult, with discretionary spending on company events reducing, resulting in a number of customers downsizing their events. Our property business is in a planning phase as we work through the process of rezoning our surplus land adjacent to the home straight and hill.
How serious is the current downturn in a historical context?
I believe it is very serious as we have seen the integrity of our global financial system seriously questioned. But I believe that New Zealand banks have operated at higher standards than that displayed overseas.
Access to capital, confidence and risk appetite will be the key to our recovery, combined with our exporters' ability to generate earnings.
What helps you put it in perspective and stay positive?
Our on-course performance and the excitement and value a day of racing at Ellerslie offers. We have just experienced our strongest two months this decade, with large crowds and hospitality revenues. We are counting down to Auckland Cup Week, which starts on February 28.
