Tourism Holdings posts first annual loss in 10 years as Covid-19 bites

Thursday, 26 August 2021

Tourism Holdings reported its first annual loss in 10 years and says it’s probably going to post another loss this year as Covid-19 travel restrictions hurt its campervan business.

The company, which rents and sells campervans in New Zealand, Australia and the United States, reported a $14.5 million loss in the year to the end of June, within its expectation from April of a loss of between $14m and $18m. It posted a $27.4m profit the previous year.

Tourism Holdings is facing the biggest single challenge in its history as border closures due to Covid-19 wipe out the international travel market that underpins its business.

Chairman Rob Campbell said they are not pleased to report an annual loss, but do consider that they have managed it well within the context of global tourism.

**READ MORE:

* Campervan company Tourism Holdings says its loss won't be as bad as expected

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* Tourism Holdings turns focus to campervan sales as rentals hurt by Covid

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The company expects to report another loss this year, saying it is “the most likely outcome”, although it said the quantum of the loss was difficult to ascertain at this point.

Given the uncertain market conditions, the tourism company said most analyst forecasts for Tourism Holdings were too optimistic for the year ahead.

Shares in Tourism Holdings fell 2.6 per cent to $2.25 in mid-morning trading on the NZX.