Zimbabwe Stock Exchange listed hospitality company, Rainbow Tourism Group (RTG), recorded a loss of US$3 million for the half year ended 30 June 2016 compared to US$ 1.9 million for the same period last year.
In a statement accompanying the financial results, RTG chairperson, John Chikura, attributed the loss to discontinued operations.
“The loss from discontinued operations includes loss on exit from Rainbow Beitbridge Hotel and impairment charge for Rainbow Hotel Mozambique assets,” he said.
RTG terminated the lease agreement on Rainbow Beitbridge Hotel with National Social Security Authority effective 31 May 2016 citing accumulated loss of US$2.3 million recorded during the hotel’s two years of operation.
Chikaura also said the reason to exit Rainbow Hotel Mozambique was due to declining performance as a result of political instability, cut back in government spending as well as resultant exchange rate transaction losses.
He said the group recorded a 4 percent increase in revenue, albeit in an increasingly challenging economic and operating environment.
“The group has responded to market liquidity challenges by tailor-making packages to its customers,” he added.
“Going forward, the group is well positioned to benefit from the evolving tourism industry and is determined to maintain the revenue growth momentum through focusing on foreign business whilst maintaining its share on the domestic market.”
On corporate social responsibility and sustainable growth, Chikura noted, the group remains committed to empower the communities in which they operate with Bulawayo Rainbow Hotel adopting Emthunzini Wethemba, an orphanage in Bulawayo.
