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Home / Business / Companies / Tourism

Campervan operator Tourism Holdings shrinks loss, urges govt to invest more in promoting NZ

NZ Herald
25 Aug, 2022 09:37 PM3 mins to read

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Tourism Holdings has posted its financial results today. Photo / Supplied

Tourism Holdings has posted its financial results today. Photo / Supplied

Campervan operator Tourism Holdings has narrowed its loss after another year hammered by pandemic-driven lockdowns and border closures.

The company made an underlying net loss after tax of $5.4 million in the year to June 30, a 63 per cent improvement on the $14.3m loss in made in the prior financial year.

Its statutory loss shrunk to $2.1m from $14.5m.

Incoming chair Cathy Quinn said the company was not content with another loss but added: "All within THL have worked hard to narrow the loss and we will be working hard to see that it is the last for our business."

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Quinn said her focus was on seeing the business recover from Covid-19 pandemic impacts and ensuring it was positioned to take advantage of opportunities as tourism rebounded.

Chief executive Grant Webster said the financial year had two distinct halves.

"The first part of the year saw significant impacts from the Covid-19 Delta wave, travel border restrictions lifting later than initially anticipated, and an increasingly challenging global supply chain."

Webster said international borders for most of its businesses remained closed for well over half of its 2022 financial year.

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Its operating revenue was down 4 per cent to $345.8 million and earnings before interest and tax were $6.9m - compared to the $8.3m loss in the prior financial year.

Webster said the tourism industry was just starting to recover with borders reopening and customers travelling again.

"The New Zealand economy has an opportunity to leverage tourism for everyone's benefit," he said.

"We want to see the New Zealand Government invest more in Tourism New Zealand, remove any barriers to success and certainly not do anything that discourages visitors to the country in what is an important time for determining the future success of
the industry.

"We see Governments in other jurisdictions in which we operate heavily investing and
engaging with the industry and hope that New Zealand does not fall behind."

The company is the largest provider of recreational vehicles in Australasia and the second largest in North America. It also owns 49 per cent of UK business Just Go Motorhomes.

On top of that, it operates Kiwi Experience and Waitomo Glowworm Caves and a campervan manufacturing business.

Apollo merger

Tourism Holdings is still waiting for regulatory approvals in its bid to acquire Australian tourism company Apollo Tourism & Leisure.

The companies entered into agreement in December last year proposing a merged entity owned by approximately 25 per cent of Apollo's shareholders and 75 per cent of THL's investors.

Chair Quinn said the timeline for completing the various regulatory processes had been frustrating.

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"We recognise that shareholders are likely to feel the same. However, at this point in time the THL board does still see merit in the transaction and can see a conclusion in a reasonable timeframe from now."

A decision was expected to be available in September. It had already spent $4.9m in transaction costs relating to the proposed merger.

Tourism Holdings did not declare a dividend and said a dividend was also unlikely for FY23.

It forecast a net profit after tax in the range of $17m to $30.2m for FY23.

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