THE Rainbow Tourism Group (RTG) is banking on next month’s general elections to boost its revenues further after posting a 16% increase in revenue to $11,1 million in the first five months of the year.
BY TATIRA ZWINOIRA
In a statement accompanying its trading update for the first five months of the year, the hospitality group chief executive officer Tendai Madziwanyika said the growth of revenue was spurred on by the recovery of revenues of its flagships properties the Rainbow Towers Hotel and Conference Centre.
The group said the growth trajectory would be maintained in the run up to the July 30 harmonised elections.
“This trajectory is likely to continue after the recent pronouncement of 30 July 2018 as the election date,” Madziwanyika said.
“The company projects an upsurge in both rooms and conferencing business driven by the elections observer missions, media and local bodies involved in the elections cycle. The company has put in place robust strategies to maximise the elections business especially for the city hotels.”
The group’s revenue raced by 16% in the first five months of 2018 to $11,1m in comparison to $9,6m in prior period last year.
The growth, RTG said, was spurred by the notable recovery of the two Harare properties, the group’s flagship, The Rainbow Towers Hotel and Conference Centre, whose revenues grew by 44% to $4,4m from $3m for the same period in 2017.
Madziwanyika said revenue from New Ambassador Hotel grew by 23% in comparison to the same period in prior year to $727 000.
During the period under review, RTG reported an increase of 27% in arrivals into the RTG hotels to 22 462 from 17 687 recorded in the similar 2017 period.
As a result, the RTG reported a growth in occupancy levels of 55% from 52% recorded in comparative period in 2017.
The increase arrivals and occupancy resulted in foreign revenue increasing by 23% to $3,66m from $2,97m recorded in the 2017 comparative.
Revenue per available room grew by 20% to $42 from $35 recorded in the 2017 comparative. The average daily rate also increased during this period by 13% to $76 from $67 recorded in the 2017 period.