RAINBOW Tourism Group (RTG) says its revenue grew by 131% to US$25,6 million in the first five months of 2019 from US$11,1 million over the same period last year, spurred by an increase in foreign currency business across all the company’s hotels.
BY MISHMA CHAKANYUKA
In a trading update at the company’s annual general meeting, RTG chief executive Tendai Madzivanyika said foreign currency revenues grew by 15% from US$3,7 million in 2018 to US$4,2 million in the period under review.
“Occupancies for the period under review declined to 46% compared to 55% recorded over the same period in 2018. The closure of Bulawayo Rainbow Hotel for two-and-a-half months due to refurbishments weighed down the company’s occupancies during this time. On a like-for-like basis, which takes account of the closure for two-and-a-half months of the Bulawayo Rainbow Hotel, the occupancy for the period closed at 54%,” said Madzivanyika.
The company invested US$1,8 million in the Bulawayo Rainbow Hotel refurbishment during the period under review.
The hotelier aims to finish the refurbishment of the remaining 54 guest rooms at Kadoma Hotel & Conference Centre by December 31 last year. It is also is focusing on improving its flagship Rainbow Towers Hotel and Conference Centre, targeting to complete 180 guest rooms by 2020.
Madzivanyika said New Ambassador Hotel would temporarily close for two months in December to make way for further refurbishments.
“The operating environment remains under stress due to continued foreign currency shortages, rising inflation, fuel shortages and erratic electricity supply. However, we remain optimistic that the business will continue to perform well, driven by the company’s foreign currency earning capacity,” he said.