Tourism Holdings Turns a Profit for Fiscal Year
New Zealand-based campervan rental firm Tourism Holdings Ltd. (THL) said its annual earnings had recovered to pre-global financial crisis levels, driven in part by a pick-up in motorhome rental activity during the 2011 Rugby World Cup.
According to the New Zealand Herald, the company said the cup, tight cost control, operational improvements and the first full-year contribution from its United States motorhome business, helped drive the 2011-12 annual net profit to $4.3 million, which compared with a loss of $27.3 million in the previous year. The prior year’s loss included a non-cash goodwill write-down of $26.1 million.
The company said the broad macro-economic factors for tourism worldwide were still of concern, especially as its primary market opportunities are centered in Europe and the United Kingdom.
“Other market opportunities such as China and East and South East Asia are appealing to many tourism operators, but they do not yet have strong traditions for self-managed itineraries that are the focus of THL’s operations,” the company said. “New Zealand still holds a strong positive reputation internationally, however, this needs to be balanced against the price expectations of the customer when comparing alternative destinations.”
The United States market was benefiting from a lower U.S. dollar but the Australian market held some uncertainty, the company said.