Shun Tak, headed by Pansy Ho, expects ‘modest recovery’ in tourism after slumping to US$71.1 million loss due to Covid-19 restrictions
- The Covid-19 pandemic posed significant challenges to the company’s property, transport and hospitality businesses, Pansy Ho says
- The group will take in new businesses such as cross-boundary bus services and passenger and baggage handling services via joint ventures later this year
Shun Tak, which has interests in property, transport, hospitality and investment sectors, posted a loss attributable to owners of the company of HK$558.2 million (US$71.1 million), compared with a net profit of HK$962.4 million in 2021, according to its annual results released on Friday.
Revenue fell 27.7 per cent to HK$3.49 billion last year, from HK$4.83 billion in 2021.
“In 2022, the world remained under the shadow of Covid-19, and the Omicron variant raged through cities where the group has significant businesses,” said Pansy Ho Chiu-king, group executive chairwoman and managing director.
“The imposition of strict travel restrictions and occasional lockdowns in mainland China, as well as the stringent anti-pandemic measures in Hong Kong and Macau, posed an immense challenge to the property, transportation and hospitality sectors.”
Other factors such as rising interest rates and inflation also undermined general market sentiment, Shun Tak said.
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“With the easing of China’s ‘zero-Covid’ policy and the borders reopening of Macau and Hong Kong, the group expects modest recovery in tourism industry in the year ahead,” said Ho.
“Looking ahead, the property division anticipates that property sales and leasing will slowly regain momentum, as the gradual lifting of pandemic-related restrictions is expected to improve market sentiment,” Shun Tak said.
The group’s hospitality business posted a loss of HK$156 million in 2022, as major mainland cities experienced prolonged lockdowns, and Hong Kong and Macau also suffered recurring pandemic waves, bringing tourism to virtual standstill.
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The transport division recorded a loss of HK$241 million last year, as cross-border transport services “remained severely disrupted” as waves of Covid-19 swept across Hong Kong, Macau and the mainland throughout the year.
“The transportation division continued to suffer significantly from Covid-19 as sea borders remained shut for the entire year before reopening on 8 January 2023,” said Shun Tak. The division, however, managed to develop new revenue streams by providing vessel maintenance services for the Hong Kong government and local ferry operators, it added.
By the third quarter of 2023, the group will participate in new businesses including cross-boundary bus services, as well as passenger and baggage handling services, through various new joint ventures.
With gradual relaxation of travel restrictions in China, the group “will actively gear itself up for an anticipated recovery in the regional travel market”, according to its annual results.
