RTG revenue rises 282%

Hospitality group, Rainbow Tourism Group (RTG) recorded a 282% increase in revenue to $4,5 billion during the five months to May 31, 2022, driven by growth in its domestic business.

During the same period last year, the Zimbabwe Stock Exchange-listed group recorded $1,18 billion revenue, chief executive, Tendai Madziwanyika told analysts at the annual general meeting on Wednesday.

The increase in revenue was driven by higher occupancy levels during the period, which rose to 46%, from a 2021 comparative of 22%, the firm said.

Domestic and global travel has been beginning to peak since government relaxed pandemic curb early this year, and firms like RTG have been benefitting.

Between 2020 and 2021, tourism arrivals were affected by COVID-19 related travel bans.

“In the five months we generated an inflation adjusted revenue of $4,5 billon as opposed to US$1,18 billion,” Madziwanyika told NewsDay Business following the company’s annual general meeting in Harare on Wednesday.

“Traditionally, the first quarter is always a low season so we grew our inflation adjusted revenues by almost 300%. The ADR (average daily rate) grew by 66% and our occupancy grew to 46%. At 46%, in the first quarter, we are basically at pre-COVID-19 levels. And then the RevPAR (revenue per available room), grew by 251%,” Madziwanyika said.

He said improved occupancies boosted foreign currency revenue.

“This has shown us the power of the domestic market. It is important to thrive and to grow our domestic tourism market. All tourism markets have a very strong and robust domestic market,” Madziwanyika said.

Going forward, he said the company would be looking to get some business from increased overseas and regional travel.

“There is an increasing trend of domestic travel following the relaxation of travel restrictions. We are actually seeing that,” he said.-newsday