This commentary from Clint Feuerherdt's address on the Kangaroo...

This commentary from Clint Feuerherdt's address on the Kangaroo Island operation infers that they are relying on increased visitation and development of facilities to drive any returns, given it will take the life of the contract (25 years) to recoup the investment. Interested to hear how others interpret this:

'Whilst the Marine and Tourism business remains somewhat subdued, FY25 is a significant year for the
business with the mobilisation of four of the largest vessels in the fleet, two on Kangaroo Island and two
in South East Queensland, expected in the second half.
Like many of you in the room, I will welcome the long-awaited mobilisation of vessels and infrastructure
for the new improved Kangaroo Island ferry service. The investment made in this project, including the
contribution towards the key marine landing infrastructure secures this important contract for operating
exclusive ferry services to KI for up to 25 years.
The new ferries will increase capacity by more than 100% on this route, one that is currently capacity
constrained.
With the introduction of yield management strategies, and the additional capacity, we expect to recoup
this investment over the 25-year contract term.
It is worth noting that fares on this route have only seen modest increases since 2013 and it is the
increased visitation to the island that has delivered the strong returns from this asset historically.
This volume of visitation is expected to gain momentum when the new ferries are launched making
onboarding and exiting much easier as they are drive-on drive-off.
There are also expanded camping and caravaning facilities and top-class golf coourse, currently under
development all of which are expected to attract additional visitors to the island.'