Donald Trump's Scottish golf courses record £15.4m losses
Donald Trump’s Scottish golf courses record £15.4m losses as ex-President’s son Eric says resorts suffered ‘significant impact’ from Covid pandemic
- His Turnberry course doubled its turnover but made a loss over all of £14.7m
- In 2020, the golf resorts reported much lower losses totalling some £6million
Donald Trump’s Scottish golf courses have reported combined losses of more than £15.4 million, with the ex-President’s son Eric blaming the ‘significant impact’ of the pandemic.
Accounts filed at Companies House for the former US President’s resorts at the Menie Estate in Aberdeenshire and Turnberry in Ayrshire show that although turnover significantly increased in 2021, the estates continue to make a loss.
The accounts reveal that Turnberry, which Trump’s firm purchased for £39.5m in June 2014, saw its turnover almost double in 2021 to £13.1 million.
Golf Recreation Scotland, which runs Turnberry, made an operating profit of £1.1 million for the year up to December 31, 2021.
However after charges for depreciation, foreign currency exchange and exceptional items, it reported an overall loss of £14.7 million. In 2020, the company made a loss of £5.3 million.
Donald Trump’s Scottish golf courses have reported combined losses of more than £15.4 million
Donald Trump visited his golf courses while President of the USA in July 2018
The Trump International Golf Links, which Trump opened in the north-east of Scotland in 2012 following a battle with environmental campaigners, made a loss for the 10th year in a row despite recording its best financial performance.
The resort’s turnover almost doubled to £2 million and it made a gross profit of more than £200,000.
It reported a total loss for the year of £700,000 compared to a loss of £1.3 million in the previous year.
Trump, whose representatives had initially said they would spend up to £1 billion on the development, hailed the course as the greatest in the world and pledged to create 800 jobs at the resort.
The business employed 53 people during its 10th year of operations who were paid a total of £1.6m.
Trump, 76, resigned as a director from the golf businesses after being elected as president and handed over his controlling stake to a trust run by his family.
The Trump Organisation said it was pleased with how the businesses had rebounded from the Covid-19 pandemic and insisted it remains optimistic about the future of his investments in Scotland.
Last year the golf courses saw a total of loss of around £6 million.
In his director report for the Menie Estate, the former White House chief’s son Eric Trump said: ‘Resort membership soared within the domestic market and the club attracted the largest number of new members in its history.
Trump has previously said that golf is his main form of exercise but resigned direct control over the courses when he became President
The Trump International Golf Links, which Trump opened in the north-east of Scotland in 2012 following a battle with environmental campaigners, made a loss for the 10th year in a row in 2021
The courses are set in the heart of the beautiful Scottish countryside, including in Aberdeenshire
‘Year end trading results reflect an improvement on the prior year with turnover almost doubling and gross profit exceeding £200k, representing its best performing year to date.
‘Ownership and management remain fully committed to the long-term vision for the resort and foresee the fiscal improvements continuing into the future.’
In his report for Turnberry, Eric Trump said: ‘The group significantly navigated the significant impact of Covid-19 on the tourism and hospitality industries to report a strong financial year.
‘Demand was strong in 2021 despite restrictions on inbound travel and with many weddings and functions rescheduling to 2021 and 2022 there is confidence that the future of the resort is strong.
‘Ownership remains fully committed to the resort and future plans are set to enhance the resort further maintaining Trump Turnberry as Scotland’s premier destination for luxury travel, championship golf and special events.’
The Trump Organisation employed 333 people at Turnberry during the year who were paid a total of £7.4 million in wages.
Trump’s family firm has been accused of falsely inflating the valuations of its Scottish properties in a lawsuit filed against him in New York.
The legal action, launched by New York attorney general Letitia James following a three-year civil investigation, alleges the Trump Organisation lied about the value of real estate to get loans and pay less tax.
Documents say the Trump Organisation ‘vastly overstated the value’ of undeveloped land and ‘improperly and materially inflated the value of the golf course’ at the Aberdeenshire resort.
It also states the firm made ‘materially false and misleading valuations’ for the Turnberry resort.
Trump described the lawsuit as ‘another witch hunt’, while his lawyer said ‘absolutely no wrongdoing has taken place’ and accused New York officials of ‘unchecked abuse of authority’.
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