HOSPITALITY group, Rainbow Tourism Group Limited (RTG), saw its profit after tax rise sixfold to ZWL$27,88 billion in the year ended December 31, 2023 from the comparable year owing to “substantial” forex revenue gains.
The increase in profit after tax was from a 2022 comparative of ZWL$4,5 billion.
The period under review was before the Zimbabwe Gold currency was adopted, on April 5, 2024, hence the use of Zimbabwe dollars (ZWL).
In a statement accompanying the group’s financial results for the year ended December 31, 2023, RTG board chairperson Douglas Hoto said the foreign currency earnings during the period came from regional and international business which grew by 129%.
“Resort hotels experienced a notable performance improvement, with occupancy increasing by 44% to 52% in 2023 from 36% in 2022. City hotels, despite recording increased revenues, posted lower occupancy, primarily due to the reduced amount of business activity during the first half of the year,” Hoto said.
The group achieved total revenues of ZWL$266,3 billion during the period under review, an increase of 126% from the comparative period’s ZWL$117,7 billion.
“This performance comprises of: rooms revenue growth of 281% to ZWL$106,4 billion (2022: ZWL$27,9 billion), food and beverage revenue growth of 81% to ZWL$139,2 billion (2022: ZWL$76,9 billion) and, other revenues income growth of 61% to ZWL$20,7 billion (2022: ZWL$12,9 billion),” Hoto said.
An increase in RTG’s conferencing business during the second half of 2023 supported the business while travel demand remained robust.
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Revenue per available room showed a year-on-year improvement.
According to RTG, the overall occupancy for the year reached 52%, a 2% increase from the 51% reported in 2022.
“The group’s flagship, the Rainbow Towers Hotel and Conference Centre, hosted several large events in 2023 such as the harmonised national elections and the International Conference on Aids and STIs in Africa ,” Hoto said.
The balance sheet more than doubled during the period under review to ZWL$329,42 billion, from the comparative period.
This was largely due to revaluations of property and equipment and an increase in inventories as well as cash and bank balances.
“The group’s financial position remains strong, with the current ratio improving to 1,19 from 1,01 in 2022. This improvement is attributable to prudent cash flow management, reflecting the group’s commitment to maintaining a strong financial footing,” Hoto said.
RTG predicts brisk business for 2024, driven by recovery of regional and international business.
“Domestic business has proved to be consistent post-COVID-19 pandemic and is anticipated to grow driven by the national infrastructure development projects being rolled out by the government of Zimbabwe. The group can reap significant benefits from the growth of leisure tourism in the Victoria Falls market and from national conferencing activities,” Hoto said.
“Volumes are projected to improve for city hotels accommodation and conferencing activities. The company will explore collaborations with partners to unlock shareholder value, leveraging strategic alliances and innovative partnerships to drive sustainable growth and enhance its competitive position in the market.”
