Tourism Holdings upbeat despite dollar's impact

Kelly Tarltons' owner Tourism Holdings says the high value of the kiwi dollar has hit its profits, but the future is still positive.

The company, which also owns Maui campervans and operates the Waitomo glow-worm caves, recorded a dip in profits for the past year, but says it will pay a higher dividend.

The sweetener did not stop the market reacting badly. Tourism Holdings' share price fell up to 17c but closed down 8c at $1.84. This year it has ranged from a high of $2.18 in February to $1.55 in May.

Chairman Keith Smith said that while concerns were held over the high currency, the long-term outlook for tourism was "very positive".

International tourism was still growing, but it was showing signs of weakening, mainly due to the high dollar; price-conscious tourists were being attracted to other destinations.

"This has particularly been felt in the backpacker, Japanese and Asia markets," said Smith.

New Zealand's summer high season also suffered from poor weather in December and January, which discouraged late-booking tourists.

Tourism Holdings bought three businesses during the year: Fullers Bay of Islands, the rental fleets and forward bookings of Hertz Australia, and Cruise NZ.

"The tourism outlook for the South Pacific region in which THL operates remains sound," said Smith.

Other brands include Mount Cook Line, Newmans Holidays, Johnstons Coachlines and Kiwi Experience.