Big operator back on tourist track

By SIMON HENDERY tourism writer

After a year of treading water, the country's largest tourism operator is confident it can now make money provided it does not fall victim to "another September 11-type event".

Tourism Holdings yesterday reported a profit for the year to the end of June of just $255,000, down from $13 million last year.

The company's annual sales revenue fell from $201 million to $182 million as frightened tourists around the world put their passports back in the drawer after last year's United States terror attacks.

The collapse of Ansett in Australia also hit tourism businesses on both sides of the Tasman.

Although New Zealand's inbound tourism market has bounced back this year, Australia, where Tourism Holdings has a significant campervan operation, has been less resilient.

On top of that, two of the company's key markets Germany and Japan have bucked the recovery trend.

Visitor arrivals into Australia were down 6 per cent for the year to the end of June and German arrivals were down 7 per cent.

In New Zealand, total arrivals were up 3.8 per cent over the same period, but German arrivals during that time were down 9.2 per cent and Japanese arrivals were down 6.8 per cent.

Tourism Holdings chairman Keith Smith said the company was well placed to benefit from the tourism rebound as September 11 travel fears receded.

"Australia's tourism recovery has been much slower than in New Zealand," Smith said.

"However, as with New Zealand, there are positive signs in forward bookings for motor home rentals in Australia as the peak summer season approaches."

Revenue from the company's rental division the Britz and Maui brands in New Zealand and Australia dropped 7 per cent to $111 million during the past year.

The company said a cost-cutting programme within the division was showing positive results.

Revenue from Tourism Holdings' "experiences" division, which includes Kelly Tarlton's marine attraction in Auckland, Waitomo Glow Worm Caves, Milford Sounds Red Boats and Treble Cone Alpine Ski Area, was down 15 per cent to $42 million.

The company said it would make an announcement today on the future of Treble Cone.

The Otago Daily Times reported on Saturday that Tourism Holdings had sold the skifield.

One positive twinkle for the division was a 3 per cent increase in revenue from the Waitomo caves.

The company's coaching division - Johnston's, Mt Cook, Airbus, Tourism Transport Fiji, Kiwi Experience and Oz Experiences - suffered a 4 per cent drop in revenue to $39 million.

Tourism Holdings will pay a 3c a share dividend on October 31.

Its shares closed down 1c yesterday at 95c.