Overseas factors punish NZ tourism

Tourism Holdings has downgraded its profit forecast for the year to next June but still expects at least a 43 per cent gain on the 2000 year.

Outgoing chairman Graham Sinclair told the annual meeting in Queenstown that the company had earlier said it was "comfortable" with a forecast $26.8 million.

But market factors and the first three months of the financial year indicated an after-tax profit of $21 million next year, compared with $14.6 million this year.

Mr Sinclair said the first three months of this financial year were not good and were well short of budget. The coup in Fiji was one of the major contributors but the result was also hurt by a disappointing ski season, fuel price increases and the Sydney Olympics.

Kevin Smith will replace Mr Sinclair as chairman.