THL profit slumps as high kiwi deters tourists

Tourism operator Tourism Holdings Ltd today posted a 6 per cent fall in annual profit, as the high Kiwi dollar kept overseas travellers away.

The company, which owns campervan fleets and tourist attractions in New Zealand and Australia, said its net profit for the year to June 30 was $10.6 million -- at the bottom end of earnings forecasts made in February.

Shares in the company traded down 5c at $1.87 on the news.

Today's result excluded the proceeds from the sale of Tourism Holdings' Oz Experience bus tour operation in April. Taking that into account, the adjusted profit would have been $13.1 million, up 4 per cent on a year ago.

Total operating revenue rose 4.6 per cent to $178 million.

"Whilst international tourism into New Zealand is still growing it is showing signs of weakening principally due to the high New Zealand currency with price conscious tourists attracted to other destinations," the company said.

The higher New Zealand dollar was particularly felt in the backpacker, Japanese and Asian markets.

In addition, the summer season suffered from poor weather in December and January which discouraged late bookings.

Official figures released last month show the number of overseas visitors to New Zealand rose 7 per cent to 2.4 million in the year to June.

The New Zealand dollar, on a trade weighted basis, rose 8.7 per cent in the year through June 30.

During the year, Tourism Holdings bought three businesses; Fullers Bay of Islands in December 2004; the rental fleets and forward bookings of Hertz Australia in August 2004; and Cruise NZ in September 2004.

"These businesses have now been successfully integrated," the company said.

Looking ahead, the outlook for tourism remained very positive, despite concerns about global security, Tourism Holdings said.

"Whilst there are concerns over the high currency the long term outlook for tourism remains very positive."

The company will pay a dividend of 6 cents per share on October 21.

Tourism Holdings' New Zealand operations include motorhomes, car rentals and coach businesses, and attractions including Kelly Tarlton's Underwater World, Waitomo Caves and Kiwi Experience.

In Australia it has over 1000 motor homes under the Britz, Maui and Hertz brands.

- NZPA