Tourism Holdings, a prominent player in New Zealand’s tourism sector, recently posted an impressive full-year profit of NZ$49.9 million.
This financial feat is particularly noteworthy given the challenges the company faced in previous years, including a declining earnings rate of -46.9% annually. However, the recent merger with Apollo Tourism & Leisure has been a game-changer, offering both companies a stronger foothold in the competitive tourism market.
The merger’s implications are vast, with both entities benefiting from shared resources, expertise, and market reach. This strategic move has undoubtedly played a pivotal role in Tourism Holdings’ financial resurgence, with a 92% surge in revenue, reaching NZ$425 million.
The company’s rebound to profitability in fiscal 2023, with a profit attributable to equity holders of NZ$49.9 million, underscores its successful business strategies and market adaptability, according to a report by TransportTalk.
New Zealand’s tourism sector, as highlighted by the Tourism Satellite Account (TSA) report, has been a significant contributor to the nation’s economy. In the year ending March 2022, tourism expenditure stood at a staggering $26.5 billion, with international tourism expenditure witnessing a 30.6% growth.
Despite the global challenges posed by the COVID-19 pandemic, domestic tourism also saw a rise, contributing $24.6 billion to the total expenditure.
Tourism’s direct contribution to New Zealand’s GDP was NZ$10.0 billion, accounting for 3.0% of the total GDP. The indirect value added by supporting industries, including the RV sector, added another NZ$6.6 billion.
The RV industry, in particular, has been instrumental in bolstering domestic tourism, with locals increasingly opting for road trips and camping holidays amidst travel restrictions.
However, the pandemic’s impact on tourism expenditure has been profound. The accommodation sector, for instance, saw increased expenditure in 2022 due to Managed Isolation and Quarantine (MIQ) and the use of traditional accommodation providers for emergency housing.
Yet, companies like Tourism Holdings have navigated these challenges adeptly, leveraging opportunities and adapting to the evolving market dynamics.
The RV industry’s role in this landscape cannot be understated. As a subset of the broader tourism sector, the RV industry has been pivotal in promoting domestic tourism, offering New Zealanders a safe and flexible travel option. The growth in domestic tourism expenditure can, in part, be attributed to the RV industry’s contributions.