By SIMON HENDERY
The country's largest tourism operator, Tourism Holdings, says it may lose money this year because of the international travel slump after last September's terror attacks.
The company yesterday reported a $2.6 million after-tax profit for the six months to December 31 - down $4 million, or 61 per cent, on the same period last year.
Chairman Keith Smith said the ongoing impact of the US attacks made forecasting the full-year result difficult.
"Based on current trading and bookings, the net profit after tax for the full year from trading operations is likely to be at best break-even, with a small loss possible."
The company also plans to sell assets, including its founding business, The Helicopter Line.
Overseas tourist numbers this summer are expected to be 3 to 4 per cent down on last year.
Before September 11, the industry had expected that visitor numbers would rise about 10 per cent.
In Australia, where the company does almost half its business, the tourism slump has been even more severe, with the collapse of Ansett and the Sydney bushfires also keeping tourists away.
While Tourism Holdings' total operating revenue for the half-year fell from $104.5 million to $96.5 million, Mr Smith said the company's financial position remained strong.
It had decided to sell its aviation businesses: The Helicopter Line, Mount Cook Ski Planes, and its 50 per cent stake in Milford Sounds Flightseeing. Negotiations with potential buyers were underway.
Treble Cone skifield and Tourist Transport Fiji could also be sold.
The company said yesterday that it would not pay an interim dividend and would review that decision at the end of the financial year.
Tourism Holdings shares dropped 25c, or almost 20 per cent, yesterday to close at $1.02, their lowest level since last September.
Slump in travel hits Tourism Holdings
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