Hospitality industry giant, Rainbow Tourism Group Limited (RTG) recorded a 62 percent growth in revenue to reach ZWL$ 454.6 million for the year ending 31 December 2019 from ZWL$ 279.8 million achieved prior year due to improved performances from its foreign and e-commerce portfolios.
This is despite a decline of 4 percent in hotel occupancy against comparable period.
In its financial results statement, the company attributed the decline in occupancy levels to temporary closures of its Bulawayo and Harare hotels for renovation last year.
“The Group revenues grew by 62% from $279.8 million in 2018 to $454.6 million in 2019. Historical growth was 539% from $34.3 million to $219.4 million. The Group’s occupancy closed at 47%, 23% below 61% recorded in 2018,”
“The slowdown in occupancy was a result of the Group’s decision to close Bulawayo Rainbow Hotel in January and February 2019 and Rainbow Towers hotel from mid-December 2019 for refurbishments. The impact of these closures was a loss of 12,100 rooms (4% occupancy),”
“On a like-for-like basis occupancy closed at 51% above the national average occupancies of 41% reported by the Zimbabwe Tourisms Authority (ZTA Q3 2019 report),” the company said.
Foreign revenues continued to provide a stable base for the company’s income, increasing marginally by 1% from US$11.1 million in 2018 to US$11.2 million in 2019.
This was complemented by positive performance from its e-commerce channel, which remains a critical source of foreign revenue growth which increased by 10% to US$2 million from US$1.8 million in 2018.
Profit before tax (PBT) for the year grew 6 times from $45 million to $256 million recorded during prior year.
During the year, RTG set up Heritage Expeditions (Private) Limited, a wholly owned local tour operations and activities entity.
The company has already commenced transfer tours, quad bike safaris, white water rafting, packaging of third-party activities as well as invested in an adventure park at the Rainbow Towers Hotel in Harare.
In the United State of America (USA), the company has set up Rainbow Tourism Group Incorporated, doing business as Journeys by Exotic and wholly owned by RTG Zimbabwe
The Group invested $42 million (approximately US$6.2 million) into hotels refurbishment in 2019.
“During the first quarter of the year, the Bulawayo Rainbow Hotel was temporarily closed in an exercise which involved the upgrade of bathrooms, full replacement of the hot and cold water reticulation system, replacement of exterior windows, upgrade of soft furnishings in rooms and the replacement of guest elevators. At the Rainbow Towers Hotel, the company has undertaken a rebuilding exercise involving the gutting down and reconstruction of the entire guest rooms and bathrooms for 187 rooms,” it said.
Total assets reached ZWL$ 1 118 472 460 against liabilities of ZWL$ 259 059 828.
However, in view of the significant investment made towards upgrading the Group’s hotels in 2019, the Board resolved not to declare a second and final dividend for the year ended 31 December 2019.