Buoyant Shotover will pay more for river concession

Friday 9th February 2001

EXCLUSIVE THRILLS: But the river adventure company will pay a higher price

By Chris Hutching

Shotover Jet will retain its exclusive concession to operate on the Shotover River but it will cost more than before.

Shotover Jet is currently enjoying strong trading from an influx of domestic and overseas tourists to Queenstown where the company's main jet boating operations are based, according to managing director Jim Boult.

In a couple of weeks he is expected to report a stronger profit result for the six months to December 2000.

Recently Shotover Jet executives have also been involved in a review of the concession to operate boats on the Shotover River, which is administered by Queenstown-Lakes District Council. A committee is understood to have recommended that Shotover Jet's concession be renewed after it expires in 2004 but the amount it has to pay will be raised from 5% of the turnover gleaned from the Shotover River operations to 7%.

Mr Boult said the amount involved was "... around about $500,000 annually ..." paid to the Queenstown-Lakes District Council. Shotover Jet was the only applicant for the concession during the review and it had to pay a $50,000 non-refundable application fee.

Meanwhile, Shotover Jet has enjoyed increased patronage over the recent holiday period.

"The domestic market is particularly strong. I think it's a hangover from the millennium new year when people put off taking a holiday." Mr Boult said.

"We're also seeing the benefit of Trade New Zealand marketing with more awareness overseas generally of Australia and New Zealand."

The positive outlook will hearten Shotover Jet's main shareholder, Ngai Tahu, disappointed at last year's $484,000 after-tax profit for the year ending June 2000 on turnover of $24 million. The share price has risen in recent months to 55c but is still below earlier highs. At that time Mr Boult blamed the effects of a fatal accident, floods affecting operations, poor millennium trading, and the Fiji situation, where operations have been wound down after the coup.

More recently the company has been evaluating a new safety-enhanced prototype jet boat made of Kevlar carborundum and powered by twin V6 General Motors petrol engines to replace the lpg Chevrolet V8 single engine currently in use. Shotover plans to upgrade its fleet with 20 of the new boats.

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