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23/05/2012

No RWC benefit for Skyline

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RWC attraction: Ireland rugby captain Brian O’Driscoll poses for a photo at Skyline’s iconic viewing platform during the team’s stay in September
The Rugby World Cup was a non-event for Queenstown tourism, the boss of a major local attraction says. 

Skyline Enterprises chairman Ken Matthews says the competition that brought 133,000 international visitors to New Zealand didn’t have much of a dent in the country’s tourism capital. 

“We picked up a bit in incremental gondola and luge rides but any additional spending was absolutely minimal,” he says. 

Aside from patriotic pride, Matthews agrees with the now-common claim that apart from Auckland, the RWC didn’t boost New Zealand tourism as a whole. 

The only RWC lift in Skyline’s extensive tourism portfolio came at Dunedin’s Mercure Leisure Lodge, he says. 

Reflecting on his recent half-year review to shareholders, Matthews is cautious about the remainder of Skyline’s financial year, saying travellers in long-haul markets are tightening their belts and holidaying closer to home. 

The report also reveals revenue is down six per cent at the flagship gondola, luge and restaurant operations in Queenstown while income is flat in Rotorua. 

Occupancy at Queenstown’s Blue Peaks Lodge & Apartments was also down about 10 per cent. 

Of the co-owned casinos, Dunedin and Queenstown show some improvement, but trading at the big one – in earthquake-affected Christchurch – remains difficult. 

The Singapore luge continues to be Skyline’s stellar performer, posting a 10 per cent revenue gain for the six months. 

Matthews says the Queenstown conglomerate hopes to launch its next foreign foray – a summer luge in Canada’s Calgary – next September or October. 

He speaks positively about the new luge being built in the Canadian Olympic Park, home of the 1988 Winter Olympics. 

“It’s an internationally-renowned attraction and it already gets lots of visitors and you’ve [also] got a one million-odd base population with high average per capita earnings,” Matthews says. 

“We’re simply adding to the range of attractions.” 

Disclosure: The writer is one of 820 small sharesholders in Skyline

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