Tourism Holdings Limited has its roots firmly in the scenic and adventure wonderland of the Otago region of New Zealand's South Island. The multi-faceted entity that today owns and operates many of New Zealand's truly iconic tourism brands traces its beginnings to three separate companies that were dedicated to giving visitors to the region the time of their lives.
These three companies eventually merged to form The Helicopter Line, which listed on the New Zealand Stock Exchange in 1986. In its early days, The Helicopter Line specialised in chartered scenic flights with a fleet of 42 helicopters and also held a 54% interest in the Treble Cone ski fields near Wanaka.
Steady growth, strategic investments and acquisitions changed the nature of The Helicopter Line and in 1996 the company changed its name to Tourism Holdings Limited to more accurately reflect its diverse stable of tourism experiences, attractions and vehicle rentals operations.
In the subsequent decade, Tourism Holdings Limited (THL) has firmly established its position today as New Zealands premier tourism operator. It has also built recognition as a substantial entity in the Australian market, in particular with its Rentals division operations.
In 1987, the remaining 46% of Treble Cone was acquired and the company backed the Showscan film "Kiwi Magic", starring leading New Zealand comedian Billy T. James. The film was launched in a permanent theatre in Queenstown, a location that is arguably New Zealand's most beautiful scenic destination and continues to welcome visitors today.
In 1988, The Helicopter Line purchased Maui Rentals with its 600 motorhomes, and later the same year, the Mount Cook Group motorhome fleet. Aucklands Mechanics Bay Helipad was acquired in 1989 and the Newmans motorhome fleet of 550 vehicles in 1990.
The first year of the new decade was also the year that Kelly Tarlton's Underwater World was acquired. A landmark of Aucklands waterfront and a pioneering feat of innovative engineering, Kelly Tarlton's was a prime visitor attraction with potential to grow and develop.
Between 1992 and 1995, THL purchased a number of the assets formerly held by the New Zealand Government-owned Tourist Hotel Corporation. These included full ownership of Rotorua Hotel, Waitomo Caves and Hotel, and Mount Cook Hotel complex; and a 50% interest in Te Anau Hotel, Milford Sound Hotel, Milford Sound Red Boats and Milford Track Guided Walk.
Other New Zealand acquisitions in the same time period included the surveillance and rescue helicopter operation based at Mechanics Bay Helipad, the Newmans Holidays brand and tour coaches, Southern World Vacations (New Zealand), 60% stake in CI Munro and 50% of the alternative bus transportation operation, Kiwi Experience.
THL's focus also shifted off-shore, with the purchase of the Sunseeker motorhome operation in Australia, Southern World Vacations (Australia and Fiji), TravelMarvel (World Travel Headquarters) in Australia, and 50% of Kiwi Experiences Australian counterpart, Oz Experience.
Kelly Tarlton's Underwater World was expanded with the addition of an Antarctic Encounter in 1994, while the ski facilities at Treble Cone received a major upgrade in 1996.
Also in 1996, some assets were sold, including Rotorua Hotel and various interests in inbound tourism and coach tour operations; the company name changed to Tourism Holdings Limited; and Sir Timothy Wallis was acknowledged as company founder.
Over the next few years the company expanded the size and scope of its activities, acquiring a range of businesses from within the Mount Cook Group, purchasing Britz Motorhomes in New Zealand, Australia and Southern Africa, and increasing its stake to full ownership in Milford Sound Red Boats, Waitomo Caves, Kiwi Experience and Oz Experience.
The Mount Cook businesses included Ski Shuttles, Ski Express, Mount Cook Tours, Mount Cook Landlines, Mount Cook Ski Planes and a partnership in Milford Sound Flightseeing.
In 1997 THL upgraded its helicopter fleet from single-engine to twin-engine machines. On 31 December, THL acquired the remaining 40% of stake in CI Munro that it did not own to take ownership to 100%.
The period from 1998 to 2002, was one of significant review and re-focus for the company.
Divestments included all hotel interests in Te Anau, Mount Cook and the Milford Track, the Britz/Maui Motorhome operation in Southern Africa, tour-wholesaling businesses in Japan, Australia and the United States of America, the Treble Cone ski area and all aviation interests including The Helicopter Line, Mount Cook Ski Planes and Milford Sound Flightseeing.
2002 saw the launching of Feejee Experience, a backpacker transport operation in Fiji, modelled on the highly successful Kiwi and Oz Experience companies. In 2003 the purchase of The Legendary Blackwater Rafting Co. and a licence to develop a unique guided tour experience in Ruakuri Cave, expanded the company's interests in the Waitomo area.
Also in 2003 a new luxury catamaran Pride of Milford was added to the Milford Sound Red Boats fleet. This nautical theme continued into 2004 with the purchase of Fullers Bay of Islands, a powerful cruise and coach brand in the winterless Northland region of New Zealand.
Kelly Tarlton's Antarctic Encounter & Underwater World added a new attraction, Stingray Bay, that opened in time for Christmas 2004 and is part of a $6 million redevelopment programme being undertaken without any inconvenience to its penguins and fishy inhabitants or to visitors. The attraction has also moved into the 2005 year celebrating the 20th anniversary of its opening and honouring its founder, the legendary underwater explorer, Kelly Tarlton himself.
The much anticipated 'Ruakuri Cave' walkway experience was reopened in 2005. The re-opening marked the culmination of 18 months of underground construction work, and further enhanced THL's strong presence in the Waitomo region.
A new environmental scheme was launched in 2005 to provide THL with an avenue to give something back to the landscapes and wildlife that make New Zealand so special to our visitors. Teaming up with BP to create the THL- BP Eco Trust, donations are made by BP whenever a THL customer purchases fuel from any of their stations. The trust aims to raise funds to help protect New Zealands rare species, native forests and delicate marine environments.
THL businesses experienced several disruptions during 2005 and 2006 with the Waitomo Glowworm Cave facilities suffering major fire and vandalism damage in December 2005, and Kelly Tarltons being flooded during a power outage in early June 2006. The recovery from these incidents has gone well with facilities already established at Kelly Tarlton's and a longer-term redevelopment plan taking shape for Waitomo.
On a more positive note for 2006, the company purchased Milford Deep which has an underwater viewing observatory situated deep in Milford Sound providing an ideal product extension to the existing THL cruising product range available in Milford Sounds.
As a result of a comprehensive review of THL's operations, structure and strategies, the company also went through major organisational changes in November 2006 as new foundations were put in place to ensure that THL remained well positioned to take advantage of future opportunities. THL's portfolio of more than 30 brands was split into four distinct, operating divisions each representing the focus of its core market segment and customer groupings. The four operating divisions are Rentals, CI Munro, EX Group and the Tourism Leisure Group. These four operations are supported by a centralised Project and IT resource.
The companys focus on growth opportunities continues in 2007. The four operating divisions are further defined with the creation of Tourism Leisure Group and EX Group.
CI Munro begins their change programme to position the company with a modern facility by relocating the Otorohanga factory to Hamilton. The division also purchased Action Motor Bodies, an engineering and vehicle customisation business.
The Rentals division was kept busy introducing new products to the market including the Britz Voyager, Britz Adventurer, Britz Rookie and the Backpacker Breezer.
In July 2007, EX Group launched Explore More, the low cost campervan and rental cars product focused on the youth market.
Within the Tourism Leisure Group, Fullers Bay of Islands launched a new $2.5m Arawhiti car ferry at Opua and in Milford Sound a new Encounter nature cruising product. THL also purchased the Blue Duck Cafe in Milford Sound.
On 30th April 2007 a takeover offer was received from Australian company, MFS Living & Leisure for all of THL at $2.80 per share. On July 24th the offer achieved an acceptance level of 83%, but was not completed as MFS Living & Leisure declined to waive its condition requiring 90% acceptances.
In August 2007 THL agreed to joint venture its premium coach chartering business, Johnstons Coachlines, with Coaching Investment Limited retaining one third interest in the company.
On 1st December 2007 Tourism Holdings Limited entered into another joint venture with the owners of InterCity Group (NZ) Limted, building on the strengths of their nationwide bus and coaching operations and their Northland leisure cruising businesses. A new company InterCity Holdings Limited was formed which holds the THL businesses of Great Sights and Fullers Bay of Islands and the InterCity businesses of Kings and InterCity Coachlines. THL owns 49% of the joint venture.
In a separate transaction, THL also sold its packaging business, Discover NZ inbound operation which traded under the brand names of Horizon Holidays, Newmans Holidays, Mount Cook Line and Ski Express to Tourmasters South Pacific (NZ) Ltd.
In March 2008 THL entered into an agreement to sell its premier Auckland tourist attraction, Kelly Tarlton's Antarctic Encounter & Underwater World to Village Roadshow. Kelly Tarlton's will join Sydney Aquarium in Village Roadshow's portfolio of entertainment and tourism related attractions. This incudes specific aquarium management of Sydney Aquarium and Oceanworld Manly, in addition to tourism related operations such as the Sydney Tower, Sea World Gold Coast and Sydney Wildlife World. The sale is subject to Overseas Investment Office approval and certain commercial conditions.
On 13th June 2008 THL agreed to sell its Milford assets to Dunedin-based Skeggs Group Limited, privately family owned company with business interests in seafoods, shipping, tourism, property and wine. The Milford assets include Milford Sound Red Boats, Milford Deep Underwater Observatory, the Blue Duck Cafe and a 49 percent shareholding in the Milford Sound Development Authority.
In a separate transaction, THL also sold its Auckland Airbus business to Johnston's Coachlines Limited (JCL) and its remaining 33% shareholding in JCL to its JCL partner Coach Investments Limited (CIL). The sale is subject to certain commercial conditions.
In December 2008 THL announced the conditional sale of its 49% shareholdings in InterCity Holdings Limited. Whilst the business which operates the Fullers & Kings tourist boat operations in the Bay of Islands and the InterCity bus network and Great Sights / Newmans coachnetworks is an excellent business it is not core to THL's operations and the sale provides the business a single committed shareholder.
Tourism also announced in December 2008 the extension of a five (5) year licence to operate the Waitomo Glowworm Caves from 2022 until 2027 with the owners the Ruapuha Uekaha Hapu Trust and the Department of Conservation. The extension also moves the agreement from a licence to a lease and defines the commercial terms. The new agreement also coincides with commencement of the rebuild of the Waitomo Glowworm Caves Visitor centre that was destroyed by fire on 14 December 2005.