Tourism slump hurts Ngai Tahu profit

By KARYN SCHERER

The steep fall in Tourism Holdings' share price over the past year has hit the results of the South Island's Ngai Tahu tribe.

Nearly three years after it received a $170 million settlement from the Government, Ngai Tahu's investments in fishing, forestry, property and tourism have returned a net $5.3 million profit.

The result would have been much higher if the tourism sector had had a better year. Revenue for the year was $106.1 million, almost double that of last year on a like-for-like basis.

The tribe's latest annual report shows nearly half of its earnings came from fisheries activities, with a further third coming from property investments, including the courts complex in Christchurch and several police stations.

Nearly a fifth of its funds are tied up in tourism assets.

In February, it increased its stake in listed tourism company Shotover Jet to 80 per cent. It also owns a 43 per cent stake of Whale Watch Kaikoura and a "substantial share" of listed tourism operator Tourism Holdings.

The fall in Tourism Holdings' share price, resulted in an overall loss of $1.2 million in the tourism sector.

Its 20 per cent stake in Ryman Healthcare has proven more lucrative - its original investment of $7.5 million four years ago was valued at the end of June at $40 million.

Its other investments include tree-seed supplier Proseed, bought from the Government in July, and a quarter share of a company which markets Saxon sheep fibre.

Other investments include Dillons Point Properties, which owns six vineyards near Blenheim.

In the report, the tribe notes its concern that the allocation of $800 million of fisheries assets remains locked up.

A report commissioned by the Treaty Tribes Coalition last year concluded that $1 million worth of Maori wealth was being destroyed each month by the delay.