TAUPŌ MOANA GROUP HOLDINGS

TIWANA TIBBLE (Chairman)

HAYDEN PORTER (Director)

Taupō Moana Group Holdings (TMGH) is the commercial subsidiary of the Tūwharetoa Māori Trust Board.

TMGH has its own Board of Directors and is mandated to create commercial and investments opportunities and grow the long-term value of the Trust Board’s assets for the benefit of Ngāti Tūwharetoa.

The ongoing COVID-19 pandemic has continued to influence the overall global economic climate. Border closures have virtually halted international tourism – New Zealand’s primary income earner. Our local tourism businesses have felt the financial impact of no international visitors. It is expected to be some time yet before the tourism industry returns to some kind of normality and country border restrictions are eased. SHELLY KATAE (Director)

COVID-19 AND TOURISM

It is well known that COVID-19 has had a detrimental effect on tourism business throughout Aotearoa.

For TMGH, the concentration has been to maintain profitability by in some cases mothballing, as well as descaling some operations. TMGH has been very successful

in achieving stability with the tourism assets it controls.

HOLE IN ONE

The Hole in One business which is situated on the Lake Terrace, Taupō continues to defy the odds.

Hole in One is one of New Zealand’s most popular and iconic tourist attractions and is one of the top activities to do in the Taupō region.

The business has again experienced difficulties with the COVID pandemic and Taupo District Council infrastructure issues affected the business for the 2021 year.

We implemented a limited opening hour regime. This has been very effective to maintain a healthy profit.

TMGH is excited with the placement of our whānau in strategic positions within the business bringing our magical Tūwharetoa flavour. To this end Hole in One with TMGH Jolly’s is running a cadet scheme with Te Puni Kokiri to train our young people in the tourism sector.

The opportunity to acquire this wellestablished tourism business has been very fruitful and has aligned well with the shareholders long-term objectives.

Our focus in the current year will be to expand the offerings at the site and maintain a positive return on investment.

RUAPEHU ALPINE LIFTS (RAL) GONDOLA INVESTMENT

TMGH together with nine other Tūwharetoa trusts and incorporations have invested in the new Gondola on Ruapehu through a secured bond.

This means the Tūwharetoa investors have first security over the Gondola asset should anything go wrong.

The Gondola has been in operation since July 2019 and unfortunately has had a hard year owing to impact of COVID-19. TMGH and the other Tūwharetoa investors have been focussed on assisting RAL where possible and where appropriate to enable continuity.

The investment in the gondola and RAL as the ski-field operator is stable with better than expected returns for the last period.

CHRIS JOLLY BOATS

TMGH holds a majority share in well-known business, Chris Jolly Boats Ltd. The business is the largest single tourism operator on Lake Taupō.

The impact of COVID-19 has been significant as the company relies heavily on overseas tourists. Lockdowns and border closures significantly reduced the number of tourists coming into the country and to the Taupō District.

TMGH has focussed on de-scaling this asset so it can operate on an income cost neutral basis therefore maintaining critical staff. This asset has proven to be very resilient with expected financial returns in such a depressed market. As a point of difference, the business welcomed Matariki from the lake with hundreds of participants during the peak three-day period. It was wonderful for the company to host our people during this special time of our year.

OTHER OPPORTUNITIES

TMGH is currently in discussions with various entities to explore opportunities of collaboration and partnership to develop the company’s asset base and in turn profitability.

TMGH has investigated several investment opportunities with many not meeting the required benchmarks, so work continues on identifying suitable business opportunities in this very volatile climate.

INVESTMENT REPORT