Grant Webster: Tourism Holdings Limited CEO on the company's half-year profit dropping 36 percent

Campervan company Tourism Holdings is being hit hard by a tough economic climate, according to new reports.

The company's net profit for the six months ended December was $25.3 million compared to $39.7 million in the previous period - a 36 percent decline.

CEO Grant Webster says there's an upside - as New Zealand rentals and sales have gone from 'strength to strength'.

"New Zealand's been our standout performer, and a really big increase, a 20+ percent increase in revenue - and fleet's gone up accordingly and we've had a good summer." 

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Episode Transcript

Speaker 1 (00:00):
Right now, we're doing camp and van sales and rental
company tourism holdings.

Speaker 2 (00:04):
Why.

Speaker 1 (00:04):
They have reported a sharp, sharp decline in profits, describing
it as the most difficult period for the RV sales
industry in decades. The firm reported a net profit of
twenty five point three million dollars. Now, that's down thirty
six percent on the period privass for the six months
to December. Grant Webster's the chief executive. He's with me now,
high Grant yet, Ay, Ryan, thanks for being with me.

(00:27):
So this has been a tough time.

Speaker 2 (00:30):
Yeah. On the RV sales side, it certainly has, and
that's around the globe. It's a very common sort of
phenomenon that we've seen everywhere. But pleasingly, the sort of
the tourism side, the rental side has actually been really positive,
going from strength to strength.

Speaker 1 (00:44):
And especially in New Zealand.

Speaker 2 (00:46):
Right Yeah, New Zealand's been our standout performer and really
big increase twenty plus percent increase in revenue, and fleet's
gone up accordingly, and we've had a good summer.

Speaker 1 (00:56):
Which doesn't make sense to me because you look at us,
we're one of the few country who's still left without
you not back to one hundred percent pre COVID levels
in terms of our tourism numbers, and yet you're you
guys are doing well.

Speaker 2 (01:08):
I look basically essentially in the countries that we operate,
no one's back to that level yet. And so you know,
we were one of the last reopening and that's had
this lag effect that we're still sort of seeing the
benefit from that. One of our core markets is Germany.
Germany has been one of the slowest to recover, so
we've still got that bounce still to come and we're
benefiting from it. Now.

Speaker 1 (01:28):
Interesting, do you know, do you guys forecast when we
might get back to that level? Is this something that
you know, I mean, it's obviously a number you guys
are interested in.

Speaker 2 (01:37):
Yeah. Look, I mean that's more of a personal opinion
based on the broader industry. I think it's sort of
twenty seven to twenty eight summer season is probably when
it's going to happen. It's it's not going to happen
in the next twelve eighty months.

Speaker 1 (01:49):
Have you noticed a change in the types of tourists
that you're seeing in the New Zealand market?

Speaker 2 (01:55):
You know what, it's actually quite quite boring. That question
in away from the way that I am through it,
because trend is returning to trend. Everything's going back to
how it was pre COVID, the same types of customers
from the same markets, fortunately spending more and staying a
little bit longer.

Speaker 1 (02:13):
That is not boring at all. That is exactly what
we want to hear. Thanks returning to normal and with
a bit more money to boot exactly exactly.

Speaker 2 (02:22):
Yeah, No, tourism. Tourism I think is in a good space.
I mean, look at the announcements from the government over
the last few weeks. It's very, very positive. It's been
years since we've had that kind of positive commentary from
the government, so ye're really supportive of it. We're in
a good place.

Speaker 1 (02:36):
Does that change the way that you go about your business?
Does that change the way you invest or where you invest?
When they talk like that, This.

Speaker 2 (02:43):
Short answer is yes. You know, when you've got choices
around the world and you've got a government that is
talking about how they drive growth and the incentives to
drive growth, then you your capital expenditure moves accordingly and
you get more confidence. So absolutely, I think we are
more bullish about New Zealand tourism than what we were

(03:04):
four months ago.

Speaker 1 (03:06):
Interesting stuff, Grant, Thank you for that, Grant, Webster Tourism Holdings,
Chief Executive.

Speaker 2 (03:10):
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