NDAMU SANDU
Rainbow Tourism Group (RTG) bucked the trend, recording 282% growth inflation-adjusted revenue to ZWL$4.5bn in the five months to May from ZWL$1.187bn in the same period last year as occupancy levels more than doubled driven by a strong domestic market.
CEO Tendai Madziwanyika told a meeting of shareholders in Harare yesterday the growth in revenue showed the group is on a growth trajectory.
“This is traditionally a low season. So we grew revenue by about 300%,” he said.
Occupancy more than doubled to 46% from 22% in the same period last year.
“At 46% in the first quarter, we are basically at pre-Covid-19 levels,” Madziwanyika said.
Revenue per available room (Revpar) was up 251% to ZWL$14,214. Revpar is a measure of the profitability per room.
“We achieved these results without foreign business, can you imagine when foreign business starts coming in, and it’s incredible. It also has shown us the power of the domestic market, the power of focusing on our own people, being able to do business among ourselves,” Madziwanyika said.
“It’s important to grow our domestic market.”
Foreign revenue contribution was up to 26% in the period under review from 16% in the same period last year.
Madziwanyika Gateway Stream has over 5000 rooms in Zimbabwe and access to over 60,000 rooms in Africa.
“Tech is serious business and if you go too much into assets, it affects your profitability,” he said
The group, Madziwanyika said, will continue with its product development and has installed three new elevators at Rainbow Towers and four will be installed by the end of the year.
He said the group has installed a KVA solar plant at Kadoma Hotel and Conference Centre, the largest green project in the tourism industry.
The plant is net-metered and will feed into the national grid and they are projecting a 2-year payback period, Madziwanyika said.
He said the group would bank on its employees for growth.
“We were profitable throughout Covid-19. We did not retrench. It was the right business thing to do. People are struggling for skills, competencies. We did the right thing for keeping our people. We retained our skills. That refreshing experience will be enhanced,” Madziwanyika said.
