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The closure of the West Coast Wilderness Railway will have a devastating effect on West Coast tourism operators, none more so than Federal Hotel’s own Strahan Village business.

At first glance it may appear as if Federal Hotels is shooting itself in the foot. More realistically it has positioned itself in the middle of a poker game, hoping to win a few chips brought to the table by other players, knowing full well the railway will never ever close.

The timing of the lease forfeiture to coincide with Wrest Point’s 40th anniversary celebration of its contribution to Tasmanian tourism industry is almost enough to stir feelings of cynicism among even the most forgiving.

In order to fund its way any business needs to generate cash operating surpluses or rely on the cooperation of lenders ( and/or shareholders but in Federals’ case this source does not provide further funds).

The following table ...

Read the rest, including explanatory graphs on John Lawrence’s blog, Tasfintalk, here

Public accountant and former economist John Lawrence was the Tasmanian Times’ 2011 Tasmanian of the Year for his ability to translate for readers arcane financials by forensic analysis.  His analyses can be found on TT, here. There is a permanent TT link to his blog, Tasfintalk in the left-hand column.

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