Tourism Holdings lays off 64 Ci Munro staff

Wednesday 6th May 2009

Tourism Holdings, owner of Ci Munro campervans, has laid off 64 staff at its Hamilton manufacturing business as demand for motorhomes dwindles. Its stock fell.

The campervan operator has cut the size of the business based on its forecast trade volumes for the next 12 to 18 months as the global economic slump saps demand for international visitors to New Zealand. The stock slid 1.9% to 51 cents, and has tumbled 27% in the year-to-date.

“The changes, whilst difficult, place the business on a much more secure footing and whilst nobody can predict the future we are here to support this business and we will do so with a positive outlook,” said chief executive Grant Webster in a statement. “The decision is not a reflection on the team at Ci Munro.”

Shares in the tourism operator slumped in February, when it posted a first-half loss of $265,000 and suspended its dividend payment. Ci Munro was a major drag on the business after it posted a $3.7 million operating loss.

Tourism Holdings has struggled as tourism numbers collapse. International arrivals in March tumbled 10% to 226,500 visitors compared to the same month last year, according to Statistics New Zealand.

Businesswire.co.nz

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