16 February 2004

By Marcia Klein

Hotel group City Lodge brushed off the effects of a lower growth in domestic arrivals by overseas tourists to lift its interim earnings by 19% in the six months to December.

Chief executive Clifford Ross said the results which were achieved over and above the 64% increase in earnings in the previous reporting period reflect group average occupancies of 77% being maintained.

This was achieved even in the wake of the global development summit, from which the group benefited the year before. Ross said overseas arrivals in 2002, including the world summit, were up 20.1% on the previous year.

Arrival statistics to the end of October last year were still higher, by 5.3%, so he disagreed with comments that the strong rand had hurt tourism.

The rand was a factor, but people were still coming to visit South Africa and there was increased international demand for the groups value for money accommodation, he said. City Lodge reported 14% higher turnover and higher cash balances.

Business Times