Tour firm upgrades attractions

By PETER GRIFFIN

A Far North ferry acquisition, sting rays for Kelly Tarlton's Underwater World and ghostly walks through the caves of Waitomo are expected to breathe new life into tour operator Tourism Holdings.

The company told shareholders at its annual meeting in Auckland yesterday that it was comfortable with analyst estimates of a full-year profit of $13 million, give or take 10 per cent.

That improvement on the $11.2 million bottom-line performance THL turned in for the year to June 30 would be before the impact of the the $22 million purchase of Fullers' Bay of Islands ferries, which is expected to contribute $600,000 in profit.

THL said it was adding an "iconic operator" to a stable that already included the Waitomo glow worm caves and Johnston's Coachlines.

The ferries operate the hole-in-the-rock tours at Cape Brett.

The acquisition comes as THL looks to revamp some of its tourist attractions and its Australian camper van and backpacker transport operations face tough competition.

A $12 million revamp of Kelly Tarlton's will add a large sting-ray exhibit and improve the layout.

"It's perceived as tired," said managing director Dennis Pickup, who pointed out that visitor numbers were down from a peak of 550,000 a year to around 300,000.

Work was under way at the 12m deep Ruakuri cave attraction at Waitomo which would feature an underground ghost walk where tourists were harried by the sound of howling dogs. Ruakuri means "den of dogs".

The additions were well-received by shareholders, but lacklustre shareholder returns and the company's board make-up sparked complaints. Chairman Keith Smith came in for criticism for his large number of directorships,

"We need slightly more than a hands-off chairman. You can't have vision for five companies with one mind," said Oliver Saint, the research director for the Shareholders Association.

Smith said many of the companies were subsidiaries of The Warehouse, THL and others and did not require his attention. He was in touch with the chief executives of his companies once or twice a week and never missed board meetings.

Director Joan Withers came in for similar criticism for over-commitment.

"I won't be taking on any more [directorships]," she promised.

"Tourism is back in vogue," said Smith, pointing to a booming tourism market spurred on by increases in airline capacity. Some 2.4 million visitors are expected to come to New Zealand this year compared with 500,000 in 1983.

The situation is less rosy in Australia where the peak season last year was hit by the effects of global terrorism and the outbreak of Sars.

Demand for camper-van hire was sluggish among the Europeans who favoured that style of tourism.

"They do not appear to be travelling to the same extent as five years ago," said Pickup. "Australia is not trading in line with expectations."

One other global trend continues to haunt Tourism Holdings - the spiralling price of oil, which increased costs among THL's ferry and tour bus fleets, required fuel surcharges to be levied.