RTG occupancy breaks record

LISTED hospitality concern, Rainbow Tourism Group (RTG), has posted a half-year historic occupancy rate of 52 percent, accounting for 13 percent growth from the 46 percent recorded in June 2023, the first time in history that the entity has broken a 50 percent occupancy mark at half a year.

This was attained during the first six months to June 30, 2024. The group attributed the achievement to a return of international tourists, which is now well ahead of pre-Covid-19 levels.

The food and beverage and conferencing activities also grew significantly, with volumes increasing by 35 percent in the review period.

In its half-year ended June 30, 2024, board chairperson, Mr Douglas Hoto said as international tourism returns to normal in the Victoria Falls market, the growth trajectory is expected to continue into the industry’s peak season, which traditionally lies in the second half of the year.

“A particularly encouraging development has been the increase in foreign tourists visiting Zimbabwe, alongside a resurgence in the domestic business segment.

“These factors have driven a sturdy growth in our occupancy rates, which have now surpassed pre-Covid 19 pandemic levels,” he said.

“This is the first time in history that the group has broken the 50 percent occupancy mark at half year. The group recorded revenues of US$18 million, a 116 percent increase from US$8,3 million posted in 2023. “The group’s margins have remained strong, improving to 67 percent from the 64 percent posted in 2023.”

Mr Hoto said the RTG Group continues to record a substantial increase in its foreign currency revenues, supporting the strengthening of the operating margin.

The group posted Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of US$1,4 million, which was a 141 percent increase from the US$0.6 million posted in 2023.

The increase in EBITDA is due to the cost containment initiatives as read together with growth in revenues.

Mr Hoto said the first six months of the year have underscored the group’s robust capacity for recovery and growth.

As Zimbabwe’s economic environment began to stabilise, the group underwent a rebound in all business operations, leading to a notable increase in revenue.

A particularly encouraging development has been the increase in foreign tourists visiting Zimbabwe, alongside a resurgence in the domestic business segment, he said.

“These factors have driven a sturdy growth in our occupancy rates, which have now surpassed pre-Covid-19 pandemic levels. This is the first time in history that the Group has broken the 50 percent occupancy mark at half year.

“The group continued its growth trajectory, posting a 141 percent increase in EBITDA compared to the same period in 2023,” he said.

Mr Hoto said the performance was achieved regardless of the impact of exchange rate losses experienced during the first half of the year.

He noted that the group remains optimistic about a strong second half of the year, driven by the industry’s recovery, which typically occurs in the later half of the year.

According to Mr Hoto, the strong recovery in international tourism at RTG hotels is expected to surpass the best-ever performance recorded in post pandemic years.

The group’s flagship hotel, the Rainbow Towers Hotel and Conference Centre underwent a major refurbishment from March 29, 2024 to July31, 2024.

The scope of works included the total rebuild and redesign of existing rooms as well as the stripping and modernisation of the Harare International Conference Centre (HICC).

Mr Hoto said the refurbishment has now positioned the Rainbow Towers Hotel to be a premier hotel of world class standard and the HICC as the preferred conference centre in Africa.

“While being the largest conference centre in Africa capable of hosting 4 500 delegates, HICC now boasts brand new carpets, seating facilities and modern trappings such as electricity charging ports and a writing arm on every seat as well as air conditioning,” he said.

Meanwhile, to address energy shortages and rising water costs, the group has strengthened its resilience through targeted initiatives, including the installation of solar power systems and boreholes.