THE Federal Group has begun a major review of its operations in a bid to shore up revenue in tourism and gaming.
The Farrell family company has 2400 staff, making it the largest private sector employer in Tasmania.
Federal Group spokesman Daniel Hanna would not comment on reports that the company – which owns both casinos and a raft of hotels – had experienced a significant drop in revenue.
“We are reviewing the organisation at all levels, but there’s nothing to announce at this stage,” Mr Hanna said.
The review is expected to take 12-18 months and react to a drop in Tasmanian tourists and regulatory uncertainty for the gaming industry.
“Obviously, the trading conditions have been difficult. You just need to look at tourism numbers – there’s been a change in visiting patterns and in spending patterns,” Mr Hanna said.
“We do this sort of thing every five to 10 years. It wouldn’t be fair to say the review is just driven by issues around gaming, but that is part of it.”
There are proposals to change regulations for gaming operations at state and federal levels.
Tourism Industry Council Tasmania chief executive Luke Martin said no operator was immune to the drop in domestic tourism.
“This shows that from the biggest players to the smallest players everyone is feeling the downturn,” Mr Martin said.
He said the council was lobbying the state to increase its tourism marketing budget next year, and talking to airlines and TT-Line on ways to increase visitor numbers to Tasmania.
• Daryn Cresswell’s experience of gambling …
http://www.themercury.com.au/article/2011/10/17/269501_tasmania-news.html
http://au.news.yahoo.com/sunday-night/video/watch/26966738
