Sun: IPL bigger than Confed Cup

Johannesburg - South African hotel and casino firm Sun International said trading in February and March was "very bad", pushing its shares more than 6% lower, but it forecast brighter conditions in May and June.

Chief Executive David Coutts-Trotter told Reuters in an interview sporting events such as the Indian Premier League (IPL) cricket tournament and the British and Irish Lions rugby tour of South Africa would boost domestic tourism and attract overseas visitors.

"February and March were very bad," Coutts-Trotter said.

"May and June should be better months for our hotels and resorts business...This quarter should be much better than the last quarter ( because) there's a lot of excitement about the cricket tournament."

South Africa will host the Indian Premier League from next week until May 24 and the Lions are touring in June and July.

Sun International has been hit as consumers in South Africa rein in spending on gambling due to a economic downturn, while tourism from abroad has also slowed due to the global financial crisis.

Coutts-Trotter, CEO since 2006, said the three months to March, its fiscal third quarter, had been tough and that he did not expect the latest interest rates cuts to improve consumer confidence any time soon.

"It's too early to see the impact of interest rates reductions...It will take time for consumers to start spending, it's a confidence problem," he said.

Sun International, founded by South African hotel and gambling magnate Sol Kerzner, is, however, not banking too much on the Fifa Confederations Cup - a two-week event in June seen as curtain raiser for soccer's World Cup in June next year.

"There's no excitement around the Confederations Cup, the (cricket tournament) might even be bigger...I don't think we'll see as many foreign visitors as many people have thought. Are foreigners even interested?," said Coutts-Trotter.

Tickets sales for the tournament, boasting a field that includes world champions Italy and South American champions Brazil, are flagging, according to world football body Fifa.

Coutts-Trotter said Sun International operations in other African countries such as Nigeria, Botswana, Zambia and Namibia were suffering from lower foreign visitor numbers.

Sun International, which also owns properties in Chile, said the construction of its $236 million Monticello project in Chile was on track for phased completion in May and August this year.

-Reuters