NMH / SUN Resorts: Market Conditions Binding

As quarterly results NMH first local hotel group, show a net profit of Rs 282.6 million for a turnover of Rs 2.2 million against Rs 357.5 million and Rs 2.3 million respectively for the period January-March 2012. For the first six months of the 2012-2013 fiscal year, the company posted a net profit of Rs 775 million against Rs 926.9 million for the same period last year.

Direction of NMH observed in its report that the problem of air access has become more acute during the first quarter of 2013 with a 13% reduction in available seat capacity on the line, Maurice Europe, coupled with an increase in the price of the ticket. "As a result, visitors from our main traditional markets decreased by 7.5 %, whilst tourist arrivals grew by only 1.5 % at national level," said the board of the hotel group. Efforts to maintain the price, image and positioning of the group were made. Nevertheless, revenues and profits have taken a downward trend as was the case for the period October-December 2012.

Direction of NMH announced that there is no sign of improvement in air access and economic conditions in the markets in Europe. Therefore, it is expected that the results for the period April to September 2013 are more or less the same level as those of the corresponding period in 2012, this exclusive benefits that could be realized on the sale of villas in the its project in Marrakech, Morocco.

Sun Resorts has completed the first quarter of its 2013 fiscal year with total revenues of Rs 1.2 billion against Rs 1.1 billion for the same quarter of 2012. Net profits, however, are down: Rs 149.5 million to Rs 120.3 million. The results were affected by losses incurred by the Hotel Amber. The renovated hotel has been launched in the last quarter of last year. "All the resorts, excluding Ambre performed well in the quarter with a marked improvement noted for Long Beach in its second year of operations ", said Board of Sun Resorts.

Sales of hotel rooms in Long Beach reported less (Rs 6 million against Rs 69 million for the first quarter of 2012), but Sun Resorts is pleased with the performance of its business in the Maldives where room occupancy rates and revenues increased, thus contributing significantly to profits group totals.

Sun Resorts recorded a 34% increase in the number of customers in Mauritius while in the Maldives, the establishment Kanuhura was able to maintain a high occupancy rate. For the entire group, the occupancy rate was 62% for the first quarter of 2013 against 63% for the same period last year. Quarter

"Market conditions will remain challenging in the second quarter with the low season rates and high airfares, "says the group's management. It noted that occupancy rates at its hotels was satisfactory in April and think Long Beach will continue to improve its performance unlike Ambre hotel where business operations remain difficult.

Meanwhile, Constance Hotels group, which has two institutions in Mauritius and the Maldives, ended the first quarter of 2013 with a turnover of Rs 702.8 million against Rs 618.3 million for the same quarter in 2012. Net profit stood at Rs 97.6 million against Rs 67.7 million in 2012.

"The industry remains very fragile and competitive, the more so as we enter the low season," says the group's management. However, she welcomes the positive signs from the increased number of tourists and emerging markets from Asia. The group, she said, will continue to be more efficiency, increase productivity and to exercise tight control over its operating costs.