THE listed Australian Tourism Group (ATG) can thank its hotels for a strong performance in its first year - but the group is diversifying into gambling and education through its investments in the Reef Casino Trust and a hotel college at Manly in Sydney.

ATG's annual meeting was told that although 100 per cent of its $14 million earnings before interest and tax in 1994-1995 came from its ownership of 22 hotels, that sector would only contribute about 62 per cent in the future.