Rainbow Tourism Group to explore strategic collaborations, innovative partnerships

RAINBOW Tourism Group (RTG), a key player in the hospitality sector, is encouraged by the Government’s focus on infrastructure development, citing its importance in enhancing tourism and facilitating inter-city travel.

In a statement released alongside the company’s financial results for the year ending December 31, 2023, RTG board chairperson, Mr Douglas Hoto, highlighted that robust infrastructure investment not only benefits the hospitality industry, but also stimulates broader growth and connectivity.

The hospitality company further notes its proactive approach to continuously improving its business model and underscored the strategic use of technology to boost operational efficiency and cultivate strong customer relationships.

“Our ability to adapt swiftly to these conditions has been pivotal. We have remained agile, continuously refining our business model and leveraging technology to boost operational efficiency and deepen our engagement with customers.

“The outlook remains positive. We draw encouragement from the Government of Zimbabwe’s focus on infrastructural development, which is fundamental in fostering tourism and enhancing inter-city travel,” said Mr Hoto.

He said the 2024 revenue forecasts point toward a robust performance, fuelled by the recovery of regional and international business.

Notably, domestic business has demonstrated consistency even after the challenges posed by the Covid-19 pandemic.

The group anticipates significant benefits from the growth of leisure tourism in the Victoria Falls market and national conferencing activities.

Volumes are projected to improve for city hotels’ accommodation and conferencing activities.

“Domestic business has proved to be consistent post-Covid-19 pandemic and is anticipated to grow driven by the national infrastructure development projects being rolled out by the Government of Zimbabwe.

“The group can reap significant benefits from the growth of leisure tourism in the Victoria Falls market and from national conferencing activities. Volumes are projected to improve for city hotels, accommodation and conferencing activities. The company will explore collaborations with partners to unlock shareholder value, leveraging strategic alliances and innovative partnerships to drive sustainable growth.”

Mr Hoto said RTG is poised to explore strategic collaborations and innovative partnerships. These endeavours aim to unlock shareholder value, foster sustainable growth and strengthen RTG’s competitive standing in the market.

During the period under review, the group witnessed a substantial increase in foreign currency business.

The increase was driven by regional and international business which together grew by 129 percent.

Resort hotels experienced a notable performance improvement, with occupancy increasing by 44 percent to 52 percent in 2023 from 36 percent 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.

The group maintained its gross profit margin at 72 percent over the past two years, which is within the industry benchmarks.

The gross margins were achieved despite a year-on-year inflation rate of 314 percent as of December 31, 2023 and gross margins were sustained through rigorous cost reduction initiatives.

The Group’s financial position remains strong, with the current ratio improving to 1.19 from 1.01 in 2022. This improvement is attributable to prudent cash flow management, reflecting the group’s commitment to maintaining a strong financial footing.-chronicle