RTG revenue up 17%

LETTICIA MAGOMBO

 

Listed hospitality group, Rainbow Tourism Group, reported a  17%  revenue increase in the 12 months to December 2021 to ZWL$2.8bn from ZWL$2.4bn driven by a growth in domestic tourism, board chairman Arthur Manase  has said.

“The group’s major source of business was the domestic market driven by city hotels. Business volumes improved significantly in the last quarter of the year buoyed by accommodation and outside catering. It is anticipated that rooms and conferencing business will continue to recover in city hotels into 2022,” Manase said.

RTG’s occupancy levels rose to 31% from 24% in 2020.

Manase said the group also invested significantly in capital projects.

“The group utilised ZWL$92m towards capital expenditure in 2021. The projects in 2021 were mainly focusing on capacitating the new business units as well as the basic care and  maintenance of the hotels.”

These projects targeted the New Ambassador Hotel, Kadoma Hotel and Conference Centre and the Rainbow Towers Hotel and Conference Centre.

However, the group was heavily affected by Covid-19 pandemic during the financial period, which forced the country into level 4 lockdown thus, resulting in the group losing five months of operations.

The group closed the year with a profit of ZWL$218m a steep decline from ZWL$560.8m achieved in the previous year.

“The operation was significantly disrupted during this Covid-19 pandemic period, mainly as a result of the high human contact nature of its activities,” Manase said.

The group in spite of this had a positive outlook and is optimistic about future prospects including infrastructural improvements as well as the growth of its technological innovations in its Gateway Stream business, he said.

Manase said there was considerable traction for the new revenue channels as evidenced by the four-fold growth in active subscribers on Gateway Stream to 66 000 in 2021 from 15 000 in 2020.

“The growth trajectory of Gateway Stream is anticipated to continue through various partnerships that have now been established with leading social influencers who are well set to channel significant volumes through Gateway Stream,” he said.

 

 

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