RAINBOW Tourism Group (RTG) has closed its Beitbridge unit after it cost the group $2 million in losses due to depressed occupancies.
BY BUSINESS REPORTER
This comes after the RTG projections showed declining market demand and rate yield in what the group said in a statement on Tuesday saw “strong indications that the hotel will continue to make losses into the foreseeable future”.
“Operational costs were no longer sustainable. Since opening in January 2014, the hotel has incurred losses amounting to $2 million. The business decision was reached following much consultation. Market factors characterised by depressed occupancies, low margins, as well as high operating costs were the major contributing factors in exiting Beitbridge,” RTG said.
“Of primary importance are the staff affected by the closure of Rainbow Beitbridge Hotel, who have been offered alternative employment within the group. RTG operates six hotels in Zimbabwe.”
The 141-room hotel closed down on Tuesday in what insiders said was due to poor business against high running costs.
It is the second hotel in the border town to close after the recent closure of the Express Hotel that cited similar reasons.
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“It is true we have closed down,” a worker at the hotel said.
“Contract workers were on Tuesday terminated and permanent staff were being relocated to other branches,” the worker continued. Hotel general manager, Clive Pisani, referred all questions to the head office in Harare.
“I am driving to Bulawayo at the moment and you may ask our head office,” he said.
It is understood the hotel, which rented the building from Nssa, was operating at a loss due to high rentals.
“Measures have been put in place to ensure a seamless transition for our customers, suppliers ad service providers,” RTG said.
The hotel also had poor water supply, resulting in it taking its laundry to other branches, while poor Chinese furniture was cause for concern.
