Rainbow room occupancy shoots up
By Wellington Zimbowa
LEADING hotelier, Rainbow Tourism Group (RTG) glorious times seem to be on the return following a 4% room occupancy increase, including lucrative profit margins.
The Zimbabwe Stock Exchange ZSE) listed company noted the positive impact of currency stabilisation in its business resurgence following the devastating effects of the COVID- 19 global pandemic.
“Occupancy for the period under review closed at 24% which is 4% above the prior year. The group was largely reliant on domestic tourism due to restrictions on international travel. Business volumes improved significantly from mid-March to June 2021 buoyed by accommodation,” said the group chairperson Arthur Manase, in the half-year company presentations for the period ended June 30, 2021.
He went on: “The stability of the official exchange rate and the availability of foreign currency has reduced the impact of inflation compared to the prior year. The expected opening up of the economy will drive tourism business significantly, starting with the domestic market.”
During the period under review conference business was severely hampered by government instigated lockdown measures in the interest of public health, triggering innovative interventions such as ICT adoption through applications such as Gateway Stream, online shopping, and the music applications
RTG posted a profit before tax of $164 million, notwithstanding business interruption owing to lockdowns.
The company runs the ‘4 Star’ Rainbow Towers and New Ambassador hotels all based in Harare, Victoria Falls Rainbow, A ’Zambezi River Lodge, Bulawayo Rainbow Hotel, and Kadoma Rainbow Hotel.
The company’s financial status remains robust, boasting of a positive working capital position of $172 million owing to cautious cash flow management.
“The group is transforming its business to be technology-driven in all aspects. This will be anchored by the Gateway stream web and mobile platform. The group will continue to explore the various opportunities presented through its digitisation initiatives,” added Manase.
Gross profit improvement margins closed at 67% up from 63% posted in 2020 largely as a result of effective cost reduction measures by the group in the wake of shrunk business.