help Aitken Spence ride downturn in tourism
Aitken Spence has reported a sharp fall in profits in the first
quarter due to the disappointing performance of its tourism sector
which is still suffering from the effects of the tsunami, but a
“significant” rise in income from its new shipping joint
ventures has helped cushion the blow.
diversified group recorded increased revenues during the first quarter
of the financial year for 2005/06 but the poor performance of its
tourism sector caused the company to experience a negative growth
in profits, it said in a statement.
Aitken Spence, which represents the world’s largest tour operator,
holds a key position in destination management services in Sri Lanka,
it has not been able to withstand the huge blow of the local tourism
scene,” it said.
The investments borne by Aitken Spence in the maritime transport
sector during the last financial year, has stood the company in
group’s cargo logistics sector experienced a significant rise
in incomes consequent to the joint ventures with leading shipping
companies and a strong performance from the existing container vessels,”
the statement said. “The group has continued with its formidable
investments with two more container vessels acquired during the
quarter which are expected to further boost profitability of the
Integrated Logistics arm of the group also experienced steady growth
in operations. The cargo logistics and the strategic investments
sectors of the group experienced increases in profitability while
the tourism sector which has been a long standing sustainer of healthy
profits experienced a 30 percent drop in profits over the previous
business of the infrastructure development sub-sector continues
to fare well with the third power plant in Embilipitiya coming on
stream during the quarter.
the restructuring and the adverse financial status of the CEB is
perceived as a matter of concern for the future,” Aitken Spence
warned. The company also warned that the prevailing economic and
political state of affairs in the country poses a threat in itself
towards the growth of the industry.
insatiability which has come about to be a prevalent feature of
our economy has hindered the influx of foreign investment to the
The firm said there was a need for proactive measures and prompt
action by the government to revive the tourism industry.
company is of the view that effective propaganda should be focused
especially at the European market, in order to attract tourists.
The drastic decline in arrivals of organized tourist traffic into
the country had an adverse impact on Aitken Spence as the occupancies
at the group’s top class hotels and resorts have not been
on comparable levels with the corresponding period last year.
Maldive Islands, home to three of the group’s beach resorts
have experienced a 30 percent decline in arrivals since the tsunami.“This
has also significantly hampered the group’s revenues in the
The company said its Printing and Garments arms have performed satisfactorily
and are expected to generate healthy contributions to group’s
profits as the year progresses.