Trade Updates
Period ending March 31, 2024
The Company Announces Trading Updates for Period Ending March 31st
Financial information is presented in U.S. dollars (US$) due to a change in reporting currency effective January 1, 2024.
trading environment
The trading environment in the first quarter of this year presented mixed economic outcomes. The local currency at the time, the Zimbabwe dollar, experienced a significant depreciation during the study period. The introduction of a new currency, Zimbabwe Gold (ZiG), is expected to bring much-needed stability and correct the exchange rate discrepancies that have been occurring in the market.
Personnel evaluation
The hotel’s occupancy rate ended at 48%, a 20% increase over the 40% recorded in the same period in 2023. Group revenues increased by 55% to US$8.4 million from the US$5.5 million recorded in the same period in 2023. The conference business saw revenue increase 40% during the quarter. This is mainly due to an increase in meeting activities at city hotels.
Our tour operating subsidiary, Heritage Expeditions African (HExA), continued its growth trajectory with increased business activity. Subsidiary revenues and activities grew three and four times, respectively. HExA is expected to maintain this momentum through the remainder of the year. Meanwhile, our technology arm, Gateway Stream, has been a volume enabler for the overall business. Activities on this platform were primarily carried out through the highly successful music concerts during the quarter.
Outlook
The Group stands to benefit significantly from the growth in leisure tourism in the Victoria Falls market and conference activity at city hotels. The Group’s outlook remains positive with the conclusion of a strategic joint venture partnership with Grant Metropolitan Hotels (GMH). This strategic joint venture is expected to significantly boost the group’s business not only in Zimbabwe but across the continent.
The Group is working on the final stages of refurbishing the Rainbow Towers Hotel and Conference Center. The project includes upgrading the remaining 72 of the hotel’s 305 guest rooms, installing the remaining guest elevators, and enhancing public areas.
The conference center will also undergo extensive renovations, including new carpeting and seating in the 4,500-seat auditorium. All renovation works are expected to be completed by 31 July 2024, and the venue will be ready to host the Southern African Development Community (SADC) Summit in August 2024.
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Disclaimer
Rainbow Tourism Group Ltd. published this content on May 21, 2024 and is solely responsible for the information it contains. Distributed by Public on May 22, 2024 11:10:08 UTC without any edits or changes.
