TINASHE MAKICHI
African Sun’s occupancy for the first quarter ended March 31 was up two percentage points to 40% from the same period
last year on the back of a stable operating environment.
In the same period last year, occupancy levels were affected by civil unrest and national shutdown protests.
Room nights sold increased 4% from 52,617 reported in the comparable quarter last year to 54,972 this year.
The business mix for the first quarter with regards to room nights was 67% local and 33% export.
Export room nights reduced 2% due to the early effects of Covid-19 which affected arrivals particularly in the Victoria Falls properties.
Domestic room nights increased 8%, a growth that was driven by corporate and Non Government Organisation business “Impact of Covid-19 represents the most significant challenge that our industry has ever faced.
The number of new cases continues to surge around the world, particularly
in Europe and the Americas which are key source markets
for the group,” African Sun company secretary Venon Musimbe said.
Zimbabwe declared a state of national disaster on March 17, 2020, followed by a nationwide lockdown from March 30, 2020.
In response to the government-imposed lockdown, Afsun temporarily closed all its 11 hotels and two casinos effective March 30, 2020. As of
May 6, the group had 31 907 room nights’ cancellation.
Musimbe said lockdowns are proving to have an extremely high economic cost, governments world over have started looking at alternatives
that will be less costly and more effective in the longterm at protecting communities and the economy.
On May 17, 2020, government further extended this lockdown for an indefinite period with regular two-week interval reviews to assess progress or lack thereof.
This saw businesses trading hours being further relaxed and extended to 16:30pm from 15:00pm.
Under Level Two, in line with the relaxation of the lockdown measures, the group took a decision to reopen its hotels on a phased approach.
Under phase one, four hotels being (Holiday Inn Harare, Holiday Inn Mutare, Holiday Inn Bulawayo, and Great Zimbabwe Hotel) were reopened on May 11, 2020.
“The group implemented various health and safety measures as guided by World Health Organisation, InterContinental Hotels Group, and government at its hotels.
As the pandemic evolves, the Group continues to assess the risks arising from the virus at all levels,” Musimbe said.
The group said worldwide Covid-19 induced lockdowns and travel restrictions have resulted in significantly reduced occupancies, with the month of April 2020 recording nil for all hotels.
The group anticipates continued disruption to travel and tourism in the months ahead, and forward visibility on the timing and shape of
improvements in demand remains very limited.
Taking into account the global trends, Afsun management expects international business to gradually resume starting from July as airlines
rebuild their networks.
