THL sees bushfire rebound

NEW Zealand-listed tour, activity and motorhome group Tourism Holdings Limited (THL) says it has already experienced a rebound in forward bookings from long-haul markets, after an initial dip in late Jan and Feb due to the Australian bushfires.

THL today released its first-half result, with net profit down 25% to NZ$13.1 million, reflecting tough market conditions in the USA vehicle sales market.

Revenue for the period was flat at NZ$207m, with THL’s brands including campervan operations Maui, Britz, Road Bear, Mighty, Just Go and El Monte along with NZ-based attractions Kiwi Experience, Waitomo Glowworm Caves, Ruakuri Cave, Aranui Cave and Black Water Rafting Co.

CEO Grant Webster said the first half of the financial year had seen lower visitor numbers for both Waitomo and Kiwi Experience, while the company’s recently launched small group tours product had experienced “strong demand and forward bookings”.

Webster confirmed a market update earlier this month which factored in a forecast reduction in Chinese inbound visitors from Feb-Apr 2020 due to the COVID-19 containment measures.

“The global situation with COVID-19 continues to remain uncertain, however at this stage we do not consider there to be any additional information that causes any change to our assumptions,” he said.

There were initial concerns about a spate of cancellations earlier this year amid global media coverage of the Australian bushfires, which did cause a drop in long-haul forward bookings.

“We have since experienced a rebound and do not expect the impact to be material to the total business in the remainder of this financial year,” he said.