May 18, 2012
NEWS
Hospitality
Constance Hotels Q1 profit down 76 percent
By: Reuters.com | May 17,2010
PORT LOUIS (Reuters) - Mauritian luxury hotel group Constance Hotels Services said first-quarter pretax profit fell 76 percent due partly to price cuts forced by falling demand.
"Group revenue was affected by the aggressive pricing policy applied by operators and the continuing weakness of the euro," the company said on Thursday, adding 2010 would remain a challenging year and recovery was expected to be slow.
The global downturn has squeezed the palm-fringed island's key tourism sector and dented growth in one of Africa's traditionally most stable and prosperous economies last year.
Tourism typically generates about 10 percent of the nation's gross domestic product and European tourists account for two thirds of arrivals.
Constance Hotels Services said first-quarter pretax profit fell to 18.7 million Mauritius rupees, on revenue down 7.1 percent to 404 million. Occupancy level for its two hotels in Mauritius fell to 67 percent from 72.5 percent.
