Tourism Holdings Eyes Profitable Growth After Challenging Years

Tourism Holdings Limited (THL) anticipates a return to profitable growth following several challenging years marked by significant financial losses. During the company’s annual meeting on March 15, 2025, Chief Executive Grant Webster informed shareholders that business performance had improved, particularly in markets outside the United States.

Webster highlighted that THL experienced a robust start to the year, with notable growth in New Zealand, Australia, Canada, and the United Kingdom and Ireland. He stated, “Positively, our forward book for the remainder of the financial year for New Zealand, Australia and Canada are each sitting around 20 percent ahead of last year.” Despite these encouraging figures, he cautioned that sustaining such growth rates throughout the year may prove challenging.

Strategic Focus Amid Uncertainty

THL’s strategic direction focuses on capitalizing on the ongoing recovery in international tourism and recreational vehicle (RV) rentals while continuing to implement cost-reduction measures. Webster described the financial year ending June 30, 2026, as a transitional period for the company. He noted that this transition occurs against a backdrop of ongoing weakness in RV sales and uncertainty regarding the timing of recovery.

While THL expects growth in its New Zealand rentals and sales, as well as in Australian rentals, Canada, the UK, and Ireland, Webster acknowledged that these gains could be partially offset by declines in the United States and within the Australian retail and manufacturing sectors. “We’re not providing profit guidance for FY26 at this stage, given we’re only three months into the year and have a number of transformative actions underway,” he explained.

Financial Performance and Future Outlook

The company’s financial results reveal a net loss of $25.8 million for the year ending June 2025, primarily driven by a decline in the value of its goodwill in the United States. Despite this setback, Webster expressed optimism about THL’s prospects, stating, “We remain confident that we’ve turned a corner and expect a return to net profit after tax (NPAT) growth in this financial year.”

As THL navigates these changes, it reflects a broader trend in the tourism and rental sectors, as companies adapt to shifting consumer behaviors and economic conditions. Shareholders and industry observers will be watching closely as THL implements its strategic plan, aiming to emerge stronger in a competitive market.

In summary, the path forward for Tourism Holdings appears promising, bolstered by early indicators of growth in key international markets and a focused approach to overcoming existing challenges.