HARARE – Rainbow Tourism Group (RTG) has reported a 46% occupancy rate for the first half of 2023, marking a modest 4% decrease compared to the 48% achieved during the same period in 2022.
Despite the decline, the group has showcased commendable resilience in maintaining business volumes, with accommodation and outside catering playing pivotal roles.
RTG’s Chairman, Douglas Hoto, highlighted that their performance was bolstered by segments such as tours and activities, Heritage Expeditions Africa, and their tech business, Gateway Stream.
These sectors contributed to the group’s growth.
The group’s half-year revenue witnessed a remarkable 41% increase, reaching $49.6 billion, compared to the $35.2 billion realized in 2022.
Hoto noted that this growth in revenues demonstrates the group’s agility in coping with a challenging operating environment.
During the review period, the group’s gross margins stood at 65%, slightly lower than the 72% achieved in 2022.
Hoto attributed this decline in gross profit margins to increased costs driven by inflation during the reporting period.
However, Hoto expressed confidence in the group’s financial position, emphasizing that the current ratio improved to 0.88, signifying a positive upturn from the 0.79 recorded as of December 31, 2022.
He credited this improvement to the judicious implementation of cash flow management strategies.
Hoto noted that RTG allocated $2.6 billion (equivalent to US$1.7 million) towards capital expenditure during the review period.
The primary focus of this capital investment was enhancing crucial areas within all Group hotels.
Hoto highlighted the comprehensive upgrade of suites at Rainbow Towers Hotel and Conference Centre, which includes the prestigious presidential suite.
This investment underscores RTG’s commitment to improving its facilities and services, with the goal of elevating the overall guest experience to world-class standards.
Hoto added that these targeted improvements align seamlessly with the group’s long-term growth objectives as they aim to position themselves as leaders in the hospitality industry.
Hoto expressed an optimistic outlook for the resurgence of the industry in the second half of the year.
The last half of the year typically contributes around 60% of the total business, driven by conferencing and foreign leisure business.
RTG’s focus will be on maintaining and enhancing profit margins through diligent cost management and the adoption of innovative business models.
They remain dedicated to leveraging synergies with their valued business partners and nurturing a motivated workforce to establish enduring value for their shareholders.
The group is steadfastly pursuing the expansion of its hotel portfolio, leveraging its debt-free financial position for this endeavor.
This performance reflects the tourism industry’s adaptability and resilience amid ongoing challenges, with RTG positioning itself for further growth in the second half of the year.
