United States President Donald Trump's golf resorts in Scotland, which had been opposed by local authorities and citizens due to environmental concerns, had been inaugurated in 2012. The company has recorded enormous losses over the past few years, though. In a recent report by Bloomberg, it has been revealed that Trump loaned out millions of dollars to the company in order to tide over the crises. Did the short-term fix end up helping the company to survive for the long-term?
Trump's loans
The company, named Trump Turnberry, recorded losses amounting to $23 million.
In addition to that, publicly available information (account filings) in the United Kingdom has further revealed that revenues have plunged by a staggering 21 percent. Last year, the total revenues amounted to $9 million. In light of these developments, Donald Trump provided the company with another loan so that the company could stay afloat. Last year's lending took Trump's total loan contributions to the company to $146.3 million (converted from £112 million) and the same amount stood at $82.3 million (converted from £63 million) the previous year.
The golf resorts in Scotland have been taking losses ever since they were first opened. In regard to the present situation, the representatives of Turnberry stated that the company suffered these losses due to the volatility of the pound and the Economic Downturn in the region due to the oil price crash.
A large chunk of the loaned amount has been used to renovate the hotel and the golf course in the resort located in Aberdeen, Scotland.
More investments
Despite these losses, the president's company is going to continue to back the venture and a second golf course is in the pipeline in Aberdeen, pending approval. In fact, in June this year, another 18-hole golf course layout was added to the project.
Following Trump's entry into politics, his son Eric Trump has been responsible for the project and has big plans for the resorts. According to the Bloomberg report, Eric Trump had shared a memo that the company wants to turn the golf resorts into the destination of choice for not only golf-related events but also for corporate conferences and weddings.
Considering the sort of money that has been invested into the controversial project over the years, it seems that the Trump Organization feels that it will turn into a profitable venture in the long term. Only time will well, how it all works out.
