Donald Trump’s Scottish resorts have suffered heavy losses in recent years requiring loans in order to stay afloat.
Financial reports have shown that for the third year running, Trump has lost millions of dollars due to a decrease in popularity in the area amongst local golfers. Some attribute this to the oil price crash and currency costs.
Trump sacrificed $1.7 million to help his debt-ridden Aberdeenshire resort. Earlier this year this same resort faced opposition to expansion plans. The Scottish Environment Protection Agency (SEPA) and Scottish Natural Heritage (SNH) formally objected to the plans and over 70,000 people signed a petition urging local authorities to reject the expansion.
The Turnberry resort, which hosted the Open four times, closed its famous Ailsa course for half of the year while refurbishment was carried out. According to Bloomberg, Turnberry made a revenue of only $11 million, compared to its $23 million of losses.
Trump loans more money to Scottish golf resorts
The total amount of loans Trump has given the Scottish resorts have increased to over $200 million—it is unclear whether the money will be made back in the near future.
The resorts lose a lot of money as they are funded in US dollars, but pay bills in GBP. This means currency transaction costs are incurred. It is estimated that as much as $12 million has been lost due to currency costs.
Trump’s two sons, Donald Jr. and Eric manage the company now their father has become president, but Trump still retains a financial interest.
“The industry is both competitive and challenging, factors that were heightened by the ongoing dip in the local economy, and adverse weather conditions,” Eric Trump said in the firm’s annual report.
He added: “It is expected that revenue will increase in subsequent years as the property is re-established as an industry-leading resort.”
See also: Big Cedar Lodge