Tourism worries as Dreamworld owner’s shares dive

Queensland’s $23bn tourism industry is expected to be hit hard by the Dreamworld fatalities.

 

Queensland’s $23 billion tourism industry is expected to be hit hard by the Dreamworld fatalities, with the share price of the theme park’s owner, Ardent Leisure, plunging more than 11 per cent in late ­trading yesterday.

As news of the deaths spread globally overnight, tourism ­officials said the tragedy could ­adversely impact international holiday-maker arrivals for Queensland. The state’s economy relies heavily on tourism, an ­industry that employs 220,000.

Four adults were killed late yesterday on Dreamworld’s Thunder River Rapids Ride which reaches speeds of up to 45km/h.

Former federal tourism minister Martin Ferguson said the hotel industry hoped the accident “does not undermine the desires of international tourists to come to Australia as we are historically a safe haven”, while Flight Centre chief executive Graham Turner said the tragedy would have a short-term impact on the state’s tourism industry.

Dreamworld, the nation’s ­largest theme park, attracted 1.8 million visitors last year.

It is the largest Australian asset in Ardent’s portfolio and the tragedy comes at an already difficult time for the group which is trying to sell operations, including its marina portfolio, to pay down debt.

Ardent Leisure chief executive Deborah Thomas and outgoing chairman Neil Balnaves did not return calls from The Australian last night.

The company is scheduled to hold its annual meeting tomorrow. In a statement, Ardent said Dreamworld would remain closed today.

“Dreamworld is working as quickly as possible to establish the facts around the incident and is working closely with the police, emergency services and authorities to do this,” Ardent said.

“Dreamworld’s focus and ­priority is with the families of those involved in this tragedy and will be providing an update to the public as soon as information ­becomes available.”

Ardent shares recovered some lost ground to close down 7.8 per cent at $2.35. The company’s shares are expected to face further pressure on opening this morning.

The 35-year-old park has ­suffered several safety issues over the past few decades. It was unclear last night how long it would remain closed for what is expected to be a lengthy police investigation, rendering the $95 season passes bought by thousands of theme park regulars for the popular summer season all but ­worthless.

“The park may be hit by longer closures as an investigation takes place and there was uncertainty for ticketholders who had pre-bought,” said one Brisbane tourism analyst.

“There was also the possibility of litigation against the ­company.”

Mantra chief executive and hotelier Bob East, who controls the bulk of hotels on the Gold Coast, did not think the accident would hurt tourism. “I don’t think it will have impact on Queensland’s tourism industry, but I think it’s terribly sad,” he said.