RAINBOW Tourism Group Limited has posted a 16 percent growth in revenue to $11,1 million from $9,6 million in the first five months of 2018, spurred by notable recovery in operations following a successful recapitalisation exercise.
In a latest trading update for the period, the group said renewed hope ushered in by the new political dispensation and the Government’s re-engagement efforts with the international community have contributed to business growth.
Notable growth was registered in the group’s two Harare properties, the Group’s flagship – The Rainbow Towers Hotel and Conference Centre whose revenues grew by 44 percent to $4,4 million from $3 million for the same period in 2017.
New Ambassador Hotel grew by 23 percent in comparison to the same period in prior year to $727 000, said RTG.
“Persistent investment in our product, as well as service delivery systems have been the cornerstone of this growth. 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,” said RTG.
“This trajectory is likely to continue after the recent pronouncement of 30 July 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.”
Meanwhile, during the period occupancy levels grew to 55 percent from 52 percent recorded in 2017 while market share increased to 28 percent against a fair share of 25 percent. Revenue Per Available (RevPAR) grew by 20 percent from $35 to $42. A review of the yielding strategy bore fruit as the Average Daily Rate (ADR) also grew by 13 percent from $67 to $76 for the period under review.
The company successfully completed the refurbishment of the Victoria Falls Rainbow Hotel in April 2018. It said all 88 rooms are now fully refurbished with the project having been completed within the planned timelines and using internally generated resources. The group also successfully completed the first stage of the transition from the ZWS ISO 9001:2008 to the new standard ZWS ISO 9001:2015.
“Certification to the new standard is expected in Q3 2018. The new risk based approach of the international standard will enhance the Quality Management Systems and result in a direct positive impact on our service delivery,” it said.
According to the report, the country’s prospects look bright as Zimbabwe braces to rejoin the Commonwealth and the greater international community.
“Having successfully put closure to all legacy matters RTG is now working on a solid plan to re-position the company to be the largest and most profitable player in the travel and tourism industry,” said the group.