Surprise tourism sale
Southern Discoveries incoming CEO Kerry Walker says the company is selling the Spirit of Queenstown so it can focus its operations on Milford Sound.
In a surprise move, the tourism firm confirmed today it has reached a conditional agreement to sell the vessel to rival RealNZ.
Purpose-built for Lake Whakatipu, the Spirit of Queenstown was brought into service in 2014 to ferry passengers to Southern Discoveries' Mt Nicholas Farm Experience on the other side of the lake.
But when the Covid-19 pandemic hit, it was used instead for a lake cruise and dining experience.
Now it is being sold to RealNZ and will be used on its Walter Peak farm trips, the same journey as the iconic TSS Earnslaw.
Walker says the sale will enable further investment into Southern Discoveries Milford Sound trips, including coaches from Queenstown.
"Our focus has shifted from surviving Covid to looking towards the future," she says.
"We're excited about the tourism journey ahead, developing and building our Milford Sound and coaching experiences.
"It's a clear signal that tourism is on the positive rebound, and that Southern Discoveries is heading towards a sustainable future."
Walker says Southern Discoveries, which has been owned and operated by the Skeggs Group since 2009, is now the market leader in both day trips to Milford from Queenstown and the "cruise operator of choice" in Milford Sound.
Southern Discoveries used STAPP funds and additional owner contributions to revive its experiences in Milford Sound and Queenstown through the downturn of tourism because of the pandemic, retaining its core team.
RealNZ, meanwhile, yesterday announced it plans to sell off Queenstown Jet Boats, Queenstown Water Taxis, the International Antarctic Centre, and Stewart Island Lodge.
Acting chief executive Paul Norris told RNZ the sales would enable the company to stay true to the intentions of its founders, tourism and conservation pioneers Sir Les and Lady Olive Hutchins.
"We are fortunate to live and work in arguably the most beautiful and protected part of Aotearoa New Zealand, so we need to be critical about what experiences we offer," Norris says.
Staff have been informed of the plans.
RealNZ also owns Real Journeys and skifields Cardrona Alpine Resort and Treble Cone, and other businesses.
In 2022, a new group of investors was brought on board, in what was described as the "one of the largest private capital raises for New Zealand tourism", thought to be tens of millions of dollars, although no figures were disclosed.
Rod Drury, Jonty Edgar, Martin Dippie, Brendan Lindsay and Milford Asset Management invested in the company. The Hutchins family retained the majority shareholding.
The move saw former Queenstown mayor Jim Boult step down as board chairman. CEO Stephen England-Hall later stepped down to return to Auckland, with conservation manager Norris stepping in as acting CEO.
