Poor tourism year but confidence reigns

Tourism Holdings' result was affected by a $3.7 million impairment writedown.

Tourism Holdings is optimistic about this financial year - well, it couldn't be much worse than the last one.

Yesterday the company signed off on a year in which it battled the high kiwi dollar, rising fuel prices, a drop in tourist numbers, plus a fire at its Waitomo glow-worm cave and a flood at Kelly Tarlton's.

It posted an $11 million net profit for the year to June 30, down from $15.3 million for the previous year.

The result included a $3.7 million impairment writedown on Auckland aquarium Kelly Tarlton's Antarctic Encounter & Underwater World.

Chief executive Trevor Hall said the year had been challenging for the company but he remained "bullish" about the industry.

"Tourism is never about the short term, tourism is always about the long- term view. We are particularly bullish on the long-term view of New Zealand tourism," said Hall, who started in the top job last month..

"It's a destination with worldwide appeal. It's going to continue to grow."

Shares in Tourism Holdings fell 4c yesterday to close at $1.70.

First NZ Capital analyst Jason Familton said the figures were in line with expectations, once the Kelly Tarlton's writedown was stripped out.

He said the company's rentals division was performing well, but the attractions side of the business was continuing to disappoint.

"Fullers Bay of Islands sounds like it's not going too well, with a new competitor entering the market up there, I understand," said Familton.

"[The Kelly Tarlton's impairment charge is] disappointing given the capital that they have invested in that business over the last two years or so. They obviously view that they are not going to get a decent return on that capital now."

The high fuel prices were expected to continue to impact on the business, said Familton.

Hall said fuel cost an additional $400,000 last year, and had flow-on impacts on airfares into New Zealand.

The high kiwi dollar also turned off international visitors and curtailed the duration and spending of those who visited.

The number of tourists dropped 4 per cent during the year, including 11 per cent declines in the key markets of Japan and Britain.