Tourism business rebounds

By SIMON HENDERY tourism writer

New Zealand's largest tourism company, Tourism Holdings, says its prospects are improving as it shakes off the effects of last year's terror attacks in the United States.

Chairman Keith Smith told about 100 shareholders at the company's annual meeting in Auckland yesterday that he expected to be able to announce a $4 million after-tax profit, excluding abnormals, when the company reported its half-year result next February.

That compares to the $3 million half-year result the company reported in February.

Smith said the forecast was made on the assumption there was no "major adverse world event" in the next few months.

All going well, the company would pay a 3c-a-share interim dividend. It did not pay an interim dividend last year.

The strong current and forecast cash flows and balance sheet meant the company was looking at a possible return of capital to shareholders which could be in the form of a special dividend, or a share buy-back. An update on the board's intentions would be given in February, Smith said.

The company's high exposure to international tourists visiting the South Pacific and the downturn in international travel after the US terror attacks meant the past financial year had been turbulent for the company, he said, but it had managed to achieve significant financial goals.

Next month, Tourism Holdings expects to announce the sale of its last remaining aviation business, Mt Cook Ski Planes.

The company has operations in New Zealand, Fiji, and Australia including Britz and Maui campervans, Johnston's Coachlines, Kelly Tarlton's, the Waitomo Glow-worm Caves, and the Kiwi Experience and Oz Experience backpacker transport services.