SeaLink lodge hit by Kangaroo Island bushfires

13 January 2020, Written by David Simmons

SeaLink lodge hit by Kangaroo Island bushfires

Kangaroo Island's leading tourism and transport business SeaLink (ASX: SLK) is assessing the impact of bushfires on its business as one of its major hotels has reportedly been destroyed.

The company confirmed on Friday afternoon that its popular holiday lodge at Vivonne Bay sustained "significant damage".

However, as reported by 7 News, the lodge was completely destroyed in the Kangaroo Island bushfires last Thursday night.

The KI fires have destroyed more than 170,000 hectares of land, houses, and other buildings, and have tragically claimed the lives of two people.

SeaLink on Friday said the extent of the damage was not yet known but it would be completing a comprehensive review of the damage once access to the site becomes possible.

"All guests and personnel were evacuated from the Vivonne Bay property on Thursday 9 January 2020 in line with emergency service warnings and well ahead of the recent bushfire activity," says SeaLink.

"SeaLink is continuing to work with emergency services and SeaLink's personnel are working tirelessly to assist and support emergency services, authorities, residents and staff impacted by the bushfires."

"SeaLink is working actively with governments to rebuild the Island infrastructure and the tourism industry including re-establishing operations from Vivonne Bay Lodge as soon as practical."

The listed company says the damage to the Vivonne Bay Lodge will not have a material adverse impact on the company's earnings.

Last week Kangaroo Island Plantation Timbers (ASX: KPT) also confirmed that its plantations were significantly affected by the Kangaroo Island bushfires.

The company has since entered into voluntary suspension from the ASX as it continues to assess the total damage done to its plantations.

The bushfires on Kangaroo Island, south-west of Adelaide, have destroyed a significant part of the western side of the island, where the majority of KPT's assets were located.

Shares in SeaLink are down 0.53 per cent to $4.70 per share at 1.46pm AEDT.

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Business News Australia

Author: David Simmons





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