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Tourism Holdings is back on track with its strategy to streamline its business after announcing a joint venture with national coach company InterCity Group.
About 30 jobs will be lost as a result of the deal.
The tourism operator, which owns well-known brands including Kelly Tarlton's Underwater World, Maui campervans and the Waitomo Caves will own a 49 per cent share in the new company - which will be called InterCity Holdings.
InterCity will own the remaining 51 per cent.
Under the deal, Tourism Holdings' Fullers Bay of Islands and Great Sights divisions shift into the new company which will also include the InterCity Coachlines, Newmans Coach Lines and Kings Dolphin Cruises and Tours brands under the InterCity Holdings name.
The consolidation is expected to be completed by June.
Staff from the Fullers Bay of Islands and Great Sights businesses will transfer to the InterCity Group but about 30 people will be made redundant.
InterCity Group chief executive Malcolm Johns will head the new company and the board will comprise a further two directors from each of the companies.
Tourism Holdings chief executive Trevor Hall said he had been in talks with InterCity since before the failed MFS takeover bid but it had been put on hold during the process.
"Malcolm and I had spoken about this previously but had not gone very far. But once MFS was done we got down to business."
Tourism Holdings would also receive $16 million in cash once the rationalisation is complete. Hall said this would be used to reduce its debt levels from a forecast $90 million to around $75 million by June next year. "We see significant returns out of InterCity - we are looking for growth and dividends."
InterCity chief Malcolm Johns said it was a big job to get Northland on the tourism map as currently only one in five tourists head north of Auckland.
"We want to make the Bay of Islands to Northland what Fiordland is to Queenstown."
First NZ Capital analyst Jason Familton said the joint venture was a positive move for Tourism Holdings as it would allow the company to free up capital while still having exposure to the coach and ferry business.
Shares in Tourism Holdings were unchanged at $2.30 yesterday.
