As an investor in Tourism and Hospitality businesses the Covid 19 Pandemic has had a dramatic effect on a number of the businesses that I have invested in and actively work to advise and manage.
The Covid 19 Pandemic has seen a massive reduction in the demand for tourism with many businesses that rely on the movement and cashflow of international and domestic tourism needing to make drastic changes to survive, and in some cases tourism businesses have not been able to survive.
For example Virgin Australia one of the leading airline brands in Australia entered Administration early into the Covid 19 Pandemic citing cashflow issues, and inability to repay loans. Due to a responsive board and fast movement Virgin Australia was able to secure a sale that will see it survive the Covid 19 Pandemic, but it will be a changed company.
If you own a Tourism Business or Hospitality business and have seen similar downturns and are worried about your financial future the first thing you need to do is ensure financial liquidity within your business.
This can take the form of securing long term loans, raising funds from investors or calling on capital from current shareholders. These kinds of steps can secure the future of your company but ensuring you have the cashflow available to pay the debts of the company and keep the company operating as a going concern.
Shaun Stenning invested companies made decisions like this back in March as we saw an immediate affect of the Covid 19 Pandemic and made moves to secure the long term liquidity of our companies.
In addition to ensuring we had liquidity we also had to make difficult decisions like furloughing staff, reducing outgoing expenses, renegotiating contracts to ensure that the financial strength of the company was there to survive the Covid 19 Pandemic.
Now that we are certain of our financial future, we have centred the efforts of our Tourism and Hospitality businesses around market position, forging new affiliate and reseller relationships, training and marketing overhaul.
These efforts have seen our companies sign new contracts with large resellers which will mean post Covid 19 Pandemic that Shaun Stenning invested companies are stronger than pre-Covid.