Nyashadzashe Ndoro
CHIEF REPORTER
Rainbow Tourism Group has released a trading update for the period ended March 31, 2024, showcasing a mixed trading environment during the first quarter of the year.
The company’s financial information is now presented in US dollars, following a change in reporting currency effective January 1, 2024.
The Zimbabwe Dollar faced significant depreciation during the period under review, but the introduction of the new currency, Zimbabwe Gold, is expected to bring much-needed stability and correct exchange rate mismatches in the market.
Despite the challenging environment, RTG’s hotel occupancies closed at 48%, a 20% growth above the same period in 2023. The group’s revenues grew by 55% to US$8.4 million from US$5.5 million recorded during the same period in 2023. The conferencing business achieved a 40% growth in volumes, led by increasing conference activities mainly in city hotels.
The tour operations subsidiary, Heritage Expeditions African, continued its growth trajectory with increased business activities. The subsidiary’s revenues and activities grew three times and four times, respectively, and it is anticipated that HEXA will maintain the momentum throughout the remainder of the year.
The technology division, Gateway Stream, has been an enabler to the overall business volumes, with successful musical concerts during the quarter under review. The group is positioned to reap significant benefits from the growth of leisure tourism in the Victoria Falls market and in conferencing activities in city hotels.
The outlook for the group remains positive, bolstered by the signed strategic joint venture partnership with Grant Metropolitan Hotels. This partnership is projected to significantly boost the group’s business in Zimbabwe and across the continent.
RTG is also undertaking the final phase of refurbishment for the Rainbow Towers Hotel and Conference Centre. The project includes upgrading the remaining 72 rooms, installing guest elevators, and enhancing public areas.
The Conference Centre will undergo significant improvements, including the installation of new carpets and chairs in the 4 500-seat auditorium. All refurbishment works are scheduled to be completed by July 31, 2024, ensuring the venue is ready to host the Southern African Development Community Heads of States conferences in August 2024.
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