BUSINESS REPORTER
Hospitality concern, Rainbow Tourism Group (RTG), is optimistic about the future after posting a solid performance in the six months to June this year.
Board chairman Douglas Hoto said the tourism sector has recovered after the government put incentives to boost the sector.
“The group is optimistic about the growth prospects as presented by the opportunities in the tourism industry largely driven by the domestic market and the returning regional and international markets,” Hoto said.
In its financial results for the six months to June 30, 2022, RTG reported growth in all the key performance indicators, including earnings before interest, tax, depreciation and amortisation, revenue and occupancy.
Revenue for the group grew by 246% in the period under review to ZWL$7.1bn from ZWl$2.1bn posted during the same period in 2021.
The group’s gross margin for the period under review closed at 72%, 5 percentage points above 67% posted in the same period in 2021, this was despite the increasing pressure from inflation.
The group managed to achieve this performance mainly through its cost-reduction initiatives and strategic pricing measures during the period under review.
The group posted EBITDA of ZWL$1.8bn during the period under review from the ZWL$470m reported in the prior comparative period.
“Our approach has been to improve operations through investing in products and markets to ensure that RTG can grow at a competitive and sustainable pace. Our ability to capture demand through our strong brand, enterprise and scale, coupled with careful cost control led to an operating profit and strong cash flow position,” Hoto said.
RTG’s chief executive officer Tendai Madziwanyika, said the growth in revenue was mainly driven by a strong performance by the hotels division where arrivals into the group grew by 110% in the period under review compared to the same period in 2021.
In terms of the occupancy, the group closed the first half of 2022 at 48%, representing a growth of 100% compared to the same period in 2021.
“The growth in occupancies is evidence that the group’s volumes are now at the pre-pandemic level. The growth in volumes has been experienced across the group’s business arms. The momentum recorded to date is anticipated to continue on the same trajectory into the rest of the year,” Hoto said.
He said the group’s digital platform the Gateway Stream proved to be a significant business driver positively impacting overall performance.
“The Gateway Stream platform continues to enjoy growth in activities across its revenue channels, with the grocery channel being the main revenue driver,” Hoto said.
The tour operations arm of the business, Heritage Expeditions Africa, performance mirrored that of the hotels business over the past six months.
“The company continues to enjoy growth in leisure and touring activities compared to the same period in 2021,” Hoto said.
