Tourism Holdings' announces drop in profits

By SIMON HENDERY

New Zealand's largest tourist operator, Tourism Holdings Ltd, made a $6.6 million profit during the second half of last year, $1 million less than for the same period in 1999.

Earlier this month THL warned its net profit for the full year to June is expected to be about 30% lower than earlier forecast, due to the disappointing performance of its Australian operations.

The company's investments include the Maui and Britz campervan fleet in New Zealand and Australia, Kelly Tarlton's Underwater World in Auckland, and the Waitomo Glowworm Caves.

"Notwithstanding the considerable efforts undertaken by management, the Australian situation has only now started to firm," company chairman Keith Smith said today.

"The indications are that the disruption to normal visitor flows caused by the Sydney Olympics, particularly to our key German market, has had a definite impact on this year's trading performance," Mr Smith said.

"The profile and prestige associated with the Sydney Olympics will, however, have a long term positive impact on our industry."

THL will pay an interim dividend of 4 cents per share on March 23.