RTG hotel occupancy jumps 43pc
RAINBOW Tourism Group (RTG’s) hotel occupancy rate for the first quarter to March 2022 grew by 43 percent compared to the same the prior year period.
Growth was significantly higher than the same period last year, when occupancy surged by 12 percent as the tourism and hospitality industry began to recover from a slowdown that emanated from Covi-19 induced lockdown.
According to RTG, the quarter under review was the best performing quarter in two years, as occupancy levels matched the pre-pandemic levels. The group posted a general growth in conferencing business in the city while the resort hotels were on a strong recovery during the first quarter of 2022.
The recovery in the tourism sector performance is significantly credited to the dip in the Covid-19 pandemic locally after two years of downcast operations.
As such, the group posted a 306 percent growth in inflation-adjusted revenue for the quarter to $1,4 billion, from $344 million in the same period in 2021.
The group’s other division, Gateway Stream contributed 11 percent to the group’s total revenue from five percent in 2021, a position that is anticipated to continue on a growth trajectory as the company is exploring various partnerships.
“The performance recorded was the best first-quarter performance since the outbreak of the Covid-19 pandemic in 2020. Occupancies for the quarter matched the pre-pandemic level of 43 percent in 2019.
“The continued strong performance recorded to date has positioned the Group to close the first quarter on a solid trading position. This was despite the continued local inflationary pressures and exchange rate volatility,” said RTG in its quarterly update to March 2022.
RTG said it remained optimistic given the return of physical international tourism conventions and exhibitions, which is likely to lead to the return to normal international tourism.
“The group remains positive about the continued recovery of the tourism sector as we approach thetail-end of the Covid-19 era. Improved prospects for travel internationally are expected to consolidate the recovery of the Victoria Falls market,” added RTG.
According to the United Nations, World Tourism Organisation (UNWTO) international tourism continued its recovery in January 2022, with much better performance compared to the weak start of 2021.
Contrarily according to economist intelligence, the travel and tourism industry continues to be one of the hardest hit by the coronavirus pandemic, with global international arrivals in 2022 set to remain 30 percent below 2019 levels.
However, an increasing number of destinations globally eased or lifted their travel restrictions, which has helped to grow demand.
After the unprecedented drop in 2020 and 2021, international tourism is expected to continue its gradual recovery in 2022.
As of March 24, 12 destinations had no Covid-19 related restrictions in place and an increasing number of destinations were easing or lifting travel restrictions, which contributed to unleashing pent-up demand.
According to the UNWTO, international tourism arrivals are expected to continue registering modest growth, weighed down by the Russian- Ukraine conflict as both countries represent a combined three percent of global spending on international tourism as of 2020.
The two countries account for four percent of international arrivals in Europe. This translates to US$ 14 billion in tourism receipts which could be lost as a consequence of a prolonged conflict.-The Herald
