Livingstone Marufu Business Writer
Rainbow Tourism Group (RTG) revenue for the first five months this year has gone up 16 percent to $11,1 million from $9,6 million during the same period last year due to improved occupancy across the group’s properties.
The growth comes at a time when many investors and election observers are coming to the country courtesy of the new hope brought about by the new political dispensation.
Group CEO Mr Tendai Madziwanyika, told shareholders at the annual general meeting on Wednesday that occupancy was up to 55 percent from 52 percent last year while market share increased to 28 percent from 25 percent.
He said the group is also embarking on vigorous expansion exercise.
“In the first five months of 2018, the Group grew revenue by $1, 5 million (16 percent) to $11,1 million in comparison to $9,6 million in prior year.
“The growth was spurred by the notable recovery of the two Harare properties, the group’s flagship: The Rainbow Towers Hotel & Conference Centre whose revenues grew by 44 percent to $4,4 million from $3 million for the same period in 2017, whilst the New Ambassador Hotel grew by 23 percent in comparison to the same period in prior year to $727 000,” said Mr Madziwanyika.
The company has experienced a positive growth in revenues and profitability post the recapitalisation exercise.
“The recapitalisation exercise as referred to earlier coincided with the renewed hope ushered in by the new political dispensation, and the many possibilities that start to unveil from the Government’s re-engagement with the international community.
“At a hospitality business level our focus and calling is to be system ready to welcome and host people from all over the world as they come to marvel and transact in this beautiful land we call Zimbabwe.
“The persistent investment in our product as well as service delivery systems has been the cornerstone of this growth. The company projects an upsurge in both rooms and conferencing business driven by the elections observer’s missions, media and local bodies involved in the elections cycle,” he said.
Government’s efforts to re-engage the international community under the “Zimbabwe is open for business” campaign have helped to create a conducive operating environment.
This trajectory is likely to continue after the recent pronouncement of July 30, 2018 as the election date.
The company projects an upsurge in both rooms and conferencing business driven by the elections observer missions, media and local bodies involved in the elections cycle.
The company has put in place robust strategies to maximise the elections business especially for the city hotels.
Revenue from foreign business grew 23 percent to $3,66 million from $2,97 million in 2017 on improved foreign arrivals, particularly at A’Zambezi in Victoria Falls, with the foreign component of revenue increasing to 33 percent from 31 percent last year.
The group has lined up several room expansion initiatives at its properties in Harare and Victoria Falls.
Shareholders, however, noted that the group has failed to declare dividends for the past six years.
Mr Madziwanyika said the country’s prospects are looking bright as it makes moves to rejoin the Commonwealth and the greater international community.