Trump's Scottish golf courses post another year of losses
Donald Trump’s Scottish golf courses have again reported significant losses, totalling £3.4m, despite the first signs of profitability at his flagship Turnberry resort.
The annual accounts for Trump Turnberry’s parent company, Golf Recreation Scotland, show the luxury hotel and golf resort in Ayrshire lost £2.3m in 2019 after ploughing more money into upgrading its facilities.
It emerged last week that Trump’s first Scottish course, at Menie north of Aberdeen, lost another £1.1m in 2019 and again required loans of nearly £1.2m from Trump’s family trust to keep it running.
Despite its headline losses, Turnberry reported its first operating profit under Trump’s ownership, of £321,000, and also began paying off £115m in outstanding loans from the US president for the first time.
Despite reducing its debt to Trump by nearly £1.6m in 2019, the accounts for both businesses put their total debts to him at just under £158m.
Turnberry said 2019 was a boom year, after investing heavily in its two golf courses, spa and events businesses. Its turnover grew 6.4% to £19.7m and staffing increased by 13% to 541 employees, many of whom were on fixedterm or seasonal contracts.
Both companies warned the coronavirus pandemic, which twice led to the enforced closure of both resorts and a collapse in international visitors, would have a severe impact on revenues and profits in 2020.
Despite Trump’s repeated backing for Brexit in the run-up to the 2016 EU referendum, his son Eric, who runs both Scottish businesses, said Brexit would compound their difficulties.
Eric Trump’s report at the start of Turnberry’s accounts said: “The severity of the impact on the golf, leisure and hospitality industry is unprecedented and was not foreseen at the start of the pandemic.”
Its continued impacts in 2021, he added, were highly uncertain. “Compounded by uncertainty [sic] of Brexit anticipated in 2021, the hospitality sector globally is facing unprecedented challenges.”
The auditors for both firms again say their long-term viability is being underwritten by the Trump Organization, which will come under renewed and heavy scrutiny after Trump leaves the White House on 20 January.
US prosecutors are investigating the Trump Organization’s finances and Trump’s tax liabilities, with significant loans to Trump by Deutsche Bank worth about $340m (£249m) that become repayable in 2023 and 2024 under scrutiny.
His sons and lawyers say the Scottish golf courses were bought using the family’s wealth without any external financing. However, the New York Times reported that in 2016, during the presidential campaign, Trump sought a further loan from Deutsche Bank to fund his refurbishment of Turnberry, using his Miami resort as collateral.