U.S. President Donald Trump has bene forced to pour more cash into the properties to cover the shortfall at his Scottish golf resorts after the property faced mounting losses last year.
According to accounts filed in the U.K., while revenue fell 21 percent to 9 million pounds, the losses at Trump Turnberry more than doubled to 17.6 million pounds ($23 million) in 2016. The factors that the resort was closed down for renovation for six months of the year and currency fluctuations were marked as the reasons for the losses by the company. The day after the U.K. voted to leave the European Union, Trump flew to Turnberry to reopen the resort on June 24, 2016.
While revenue fell 12 percent, widening losses of 1.4 million pounds, an increase of 28 percent, was also posted by Trump’s course north of Aberdeen. a severe winter storm which damaged part of the site, the subsequent downturn in the economy of northeast Scotland and the fall in the price of oil were the reasons that the company cited for the widening losses.
Under Trump’s ownership, neither of the two courses have been able to make a profit even though he has poured millions into both of his courses in Scotland. Trump’s most costly investment has been Turnberry. As he renovated Turnberry’s hotel and reconfigured its championship golf course, he increased his loan to the company to 112 million pounds in 2016, up from 63 million pounds the year before. Bringing the total amount he’s loaned the company to 40.6 million pounds, Trump loaned an additional 1.2 million pounds to his resort north of Aberdeen in response to declining revenue and an increase in net liabilities.
Because of planning and environmental issues involved in constructing a golf course on delicate sand dunes, the Aberdeen property, which Trump opened in 2012, has faced stiff opposition from local residents and authorities for years. Trump was also engaged in a legal battle to stop an offshore wind farm that he said would mar the views from the property but he lost that legal battle as well. Approval is being awaited for his plan to build a second course north of Aberdeen.
By adding a second 18-hole layout that opened in June 2017, Trump has continued to pour money into Turnberry. They are trying to turn the resort into Scotland’s leading destination for weddings, conferences and events in addition to golf, wrote Eric Trump, who has overseen Turnberry’s overhaul during his father’s campaign and entry into the White House, in a note attached to the accounts.
(Adapted from Bloomberg)