Profits Double At Lux Island Resorts

May 15, 2012

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Mauritius hotels group Lux Island Resorts has reported a rise in pre-tax profits for the first nine months of its fiscal year to 124.9 million rupees (USD$4.26 million) from 60.4 million rupees.

The luxury hotel group, which has properties in the Maldives and Reunion, as well as the Indian Ocean island, said on Tuesday occupancy rates for the nine months to the end of March rose by 3 percent to reach 76 percent.

Group revenue was up to 2.99 billion rupees from 2.36 billion rupees and earnings per share climbed to 1.06 rupees from 0.56 rupees, the company said in a statement.

Tourism typically generates about 10 percent of Mauritius's gross domestic product. European tourists account for two thirds of arrivals.

The group's unit in Maldives, best known as the Indian Ocean's top five-star beach destination, helped push up profits, despite political turmoil there early this year.

But the performance of the tourism industry in the region was influenced by the impact of the eurozone crisis, the company said.

Exchange rates are also affecting on the revenue stream of hotel companies in the region and occupancy rates are under pressure as the industry enters the low season.

The company, which changed its name from Naiade Resorts, said it expected results for the year ending June 30 to be about the same as the previous year.