Tourist hotel trading loss

Press, 17 September 1980, Page 2

Tourist hotel trading loss

Wellington reporter A trading loss of $226,832 at Tourist Corporation hotels is outlined in the corporation’s annual report, tabled in Parliament yesterday. The corporation was not alone among hotel operators in this, the report said. Stringent economy measures to minimise the effects of escalating overhead costs had been maintained, and would continue to be necessary while the present period- of international economic uncertainty persisted, it said.

■ The . report outlined the situation at each, of the corporation’s individual hotels. Franz Josef had regained some trade but’ the partial loss of access for glacier excursions had contributed significantly to its increased trading loss. When the helicopter service planned by Mount Cook Airlines gained the necessary approvals, business should improve. Mount Cook, comprising the Hermitage and Glencoe hotels, motel units, and chalets, had recorded another year of decreased patronage, although there were more

New Zealand and overseas visitors than at any other corporation location, the report said. The building programme which had increased accommodation substantially had incurred large loan commitments, and profitability was unlikely to be regained until patronage improved.

Twizel had • also experienced the general decline in guest numbers, and its sales of liquor had fallen significantly. The future of Twizel Village continued to be an unknown quantity.