Vacation costs much higher

Press, 27 February 1980, Page 27

Vacation costs much higher

PA Auckland Vacation . Hotels, Ltd, faced a 91. per. cent increase in- interest charges, a 33.8 per cent rise in administration -/and refurbishing costs,- and a 13.1 per cent rise in wages and salaries, in the year to October 31. The 9.6 per cent rise in revenue for the year was more than offset by the cost increases, the company’s chairman (Mr J. T. Sheffield) says in his annual review.

As reported, these factors contributed to the company suffering a 26.1 per cent fall in profit to $699,265. Commenting on the future of tourism, Mr Sheffield says that the number of New Zealanders holidaying overseas is • increasing rapidly (up 36.1 per cent in 1979) but the number of overseas visitors holidaying here is declining. Cheap airfares have encouraged this trend, and New Zealanders returning from holidays are filling seats that could be available for incoming tourists,, he says. Vacation directors would like to see some changes in airline policy to ensure that more seats are available for incoming tour groups. The accounts show the steady 11 per cent dividend takes $44,961 more at $404,250. It is covered by an

earning rate on ordinary capital back from 25.8 per cent tp 14.4 per cent. The return on average shareholders’ funds was down from 12.2 per cent to 7 per cent.

Shareholders’ funds rose $1,365,251 to $9,494,487. Term liabilities rose $2,227,006 at $3,572,658.