TRADING ENVIRONMENT
Sun International achieved another very positive
performance this financial year. Improved levels
of disposable income arising from lower interest
rates and increased consumer confidence were the primary drivers,
particularly of our gaming operations.
Our hotels and resorts had a challenging year, largely as a
consequence of increased competition from Dollar denominated
destinations due to the Rand strength, additional capacity in the
five-star market, and a trend to a buy down by international
tourists.
The Rands performance has served to keep inflation down to levels
which make a 6% growth in GDP that much more achievable.
Sound planning and focused cost control will be required in the
future, given that revenue growth rates currently being achieved
are unlikely to be sustained.
Chief executives report
Sun International has positioned itself as a successful leisure
group offering superior gaming, hotel and entertainment experiences, which exceed
our customers expectations and our competitors offerings.