4 Feb 2011

Tourism Holdings issues profit warning

7:12 pm on 4 February 2011

One of New Zealand's largest tourism companies has issued a profit warning, saying weather disruptions have caused a sudden drop in bookings.

Tourism Holdings Ltd, which runs the Maui and Britz rental companies as well as the Kiwi Experience bus and the Waitomo Caves, says a severe and sudden drop in forward bookings in January has created significant uncertainty.

In December, the company expected to make a profit of $2.5 million in the year to June but is now forecasting a $4 million loss.

THL chief executive Grant Webster says the Queensland floods, Cyclone Yasi and snowstorms in Britain have deterred people from booking trips, while domestic holiday makers are not travelling as much.

Mr Webster says it is an unpleasant situation, but the 2011 Rugby World Cup should provide a boost to the market later this year.