Rainbow Tourism Group (RTG) says it recorded sustained recovery of international tourists in 2022 and the trend is projected to accelerate going forward.
Globally, the hotel industry was the most affected by the Covid-19 pandemic as countries restricted travels resulting in several companies closing operations.
Doug Hoto, the group’s chairman in a statement of financials for the year ended December 31, 2022, said the company closed the year with a profit from operations margin of 9 percent.
“The positive growth reported in 2022 is expected to continue into 2023 as the world tourism activities return to pre-Covid-19 Pandemic levels,” he said.
RTG is a tourism and hospitality management company in Zimbabwe, with an extensive portfolio of owner-managed or leased hotels and conference facilities in Zimbabwe as well as a tour operator company.
During the year under review, occupancy for the period under review closed at 51 percent which is a 65 percent increase from the 31 percent posted in 2021.
“The group is now operating at above 2019 levels. Volumes improved significantly during the year under review buoyed by accommodation, outside catering, Heritage Expeditions Africa activities as well as Gateway stream revenue channels such as online shopping and the music application,” said Hoto.
He said city hotels conferencing business recorded positive performance during the year. Resultantly, the group posted revenues of $24,5 billion, 131 percent above $10,6 billion posted in 2021.
“Despite increased pressure from inflation, the Group’s gross margins for the year under review remained unchanged at 70 percent compared to full year 2021.
“The improvement in gross profit margins is attributable to cost reduction measures that were put in place to mitigate the effects of increasing prices in the market,” said Hoto.
For the period under review, the group posted an Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $2,7 billion during the year under review which was 29 percent above the $2,1 billion posted in 2021.
Hoto said strong revenue performance coupled with a relentless grip on costs were key drivers to a healthy EBITDA performance.
During the period under review, the Group managed to extinguish its debt and maintained a robust plan to ensure the existing solid working capital base is sustained.
Hoto said the group is engaged in the expansion of the group’s hotels portfolio in carefully selected areas around Zimbabwe.
Hoto said the company will also focus on technology and digitisation through the activation and expansion of the Gateway Stream mobile application.
In addition, focus will also be on expanding the group’s reach in the tourism value chain through investment in the tour operations and Heritage Expeditions Africa