RAINBOW Tourism Group (RTG) revenue grew by 7% to $8,7 million in the first quarter ended April 2014 from the same period last year buoyed by a strong performance of resort hotels and the conference centre. VICTORIA MTOMBA
Revenue grew from $8,6 million same period last year.
Speaking at the company’s annual general meeting yesterday RTG chief executive officer Tendai Madziwanyika said A’Zambezi River Lodge recorded revenue growth of 25% over the corresponding period last year while the Rainbow Towers Hotel and Conference Centre recorded a 10% growth in turnover.
“The group experienced significant growth in conferencing business during the period under review.
“This increase resulted in an increase in revenues of 12% from prior year for food and beverage for the Rainbow Towers and Conference Centre,” he said, adding that the group hoped the trajectory would continue.
During the period under review the number of rooms sold were 16% up over the same period last year.
“This resulted in an occupancy growth of 16% from 38% in the first quarter of 2013 to 44% in the first quarter of 2014,” he said.
Madziwanyika said international arrivals grew by 13% over the same period while during the quarter revenue contribution from the South African office grew by 51% from the prior year.
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Foreign business during the period under review grew 9% while domestic revenues were up 7%.
“In regional hotels, performance for the Rainbow Hotel Mozambique has been depressed.However, the group has since implemented revenue-generation strategies to drive the Mozambique business and we project positive take-off in the business unit’s revenues in the months ahead,” Madziwanyika said.
Meanwhile, the group is undertaking a voluntary retrenchment exercise for Rainbow Towers Hotel and Conference Centre.
“I cannot tell you the numbers as the whole process is confidential and we are in a closed period.We have had enthusiastic takers,” he said.
RTG chairman John Chikura said the company hoped that it would pay dividends to shareholders next year as they have gone for quite some time without receiving any dividends.
“We have just turned a corner and our priority is to give something to the shareholders next time this year,” Chikura said. The company first recorded a profit for nearly five years last year of $1,1 million profit after it adopted cost-cutting measures.
The hotel and leisure group recorded a $5,9 million loss the previous year and has been making losses since 2009.
The company plugged the leakages which have been bleeding it over the years resulting in cost-savings of $1,5 million in 2013.
