Forex revenue gains propels RTG to sixfold rise in profitability

HOSPITALITY group, Rainbow Tourism Group Limited (RTG), saw its profit after tax rise sixfold to ZWL$27,88 billion in the year ended December 31, 2023 from the comparable year owing to “substantial” forex revenue gains.

The increase in profit after tax was from a 2022 comparative of ZWL$4,5 billion.

The period under review was before the Zimbabwe Gold currency was adopted, on April 5, 2024, hence the use of Zimbabwe dollars (ZWL).

In a statement accompanying the group’s financial results for the year ended December 31, 2023, RTG board chairperson Douglas Hoto said the foreign currency earnings during the period came from regional and international business which grew by 129%.

“Resort hotels experienced a notable performance improvement, with occupancy increasing by 44% to 52% in 2023 from 36% in 2022. City hotels, despite recording increased revenues, posted lower occupancy, primarily due to the reduced amount of business activity during the first half of the year,” Hoto said.

The group achieved total revenues of ZWL$266,3 billion during the period under review, an increase of 126% from the comparative period’s ZWL$117,7 billion.

“This performance comprises of: rooms revenue growth of 281% to ZWL$106,4 billion (2022: ZWL$27,9 billion), food and beverage revenue growth of 81% to ZWL$139,2 billion (2022: ZWL$76,9 billion) and, other revenues income growth of 61% to ZWL$20,7 billion (2022: ZWL$12,9 billion),” Hoto said.

An increase in RTG’s conferencing business during the second half of 2023 supported the business while travel demand remained robust.-newsday