The RACT has sold its tourism properties to the NRMA

RACT has revealed what the future holds for their staff and members’ travel discounts after the $130 million sale of the company’s entire tourism portfolio. DETAILS >>

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THE RACT has pledged all staff will be retained and members’ travel discounts will continue following the $130 million sale of the company’s entire tourism portfolio.

National insurance giant NRMA has bought all of RACT’s tourism properties — Freycinet Lodge, Cradle Mountain Hotel, Strahan Village and Gordon River Cruises.

It is understood a significant portion of the NRMA’s $130m outlay will be devoted to the upgrade and renovation of Freycinet Lodge, the Cradle Mountain Hotel and Strahan Village.

Freycinet Lodge. Picture: RACT Destinations

The deal has been hailed by the peak body for Tasmanian tourism as a “tremendous opportunity” for the industry, given NRMA’s membership base of 2.6 million.

RACT group chief executive Mark Mugnaioni said the tourism side of the business was sold following a “strategy review”.

“RACT is always focused on continuing to create more value for our members,” Mr Mugnaioni said.

“And as part of a strategy review we’ve determined that ultimately there are other opportunities for us to invest our members’ money.

“We took the assets to market. There was an incredibly strong level of interest, not just from Australia but from around the world, but we are really delighted to be able to sell the assets to our sister organisation, the NRMA.

“Importantly, throughout this process our people impacted by this decision have been our priority and we are pleased that NRMA has committed to support our people through a continued operational structure that will see our staff retained as part of the deal.”

Strahan Village. Pic supplied by RACT

Mr Mugnaioni said RACT members would continue to receive discounts at the tourism sites under the NRMA’s ownership, with the NRMA to invest “tens of millions” in the properties.

NRMA expeditions CEO Rachel Wiseman said Tasmania was an important addition to the NRMA’s tourism offering, given the state’s unique all-year-round holidaying experiences.

“With the possibility of international travel still way off for Australians the NRMA expects the growth in domestic tourism numbers to continue as we turn to our own backyards to explore and relax,” she said.

Tourism Industry Council Tasmania CEO Luke Martin said RACT had been outstanding custodians of some of Tasmania’s most iconic tourism assets.

“We welcome the investment by NRMA and their aspirations to take these beloved destinations to another level,” Mr Martin said.