Chobe jittery over demand as Dollar gains strength

Chobe Holdings Limited remains cautious as the strengthening of US dollar against other currencies poses a threat for low demand from its source markets.

Commenting on the published results Chobe Holdings, Chief Executive Officer, Jonathan Gibson said the effects of uncertainty in Europe have yet to be seen, but may be consequential if the conflict in the Ukraine escalates. “The strength of the United States Dollar relative to other currencies will dampen demand from some of our source markets, although this is ameliorated by strong demand for travel generally and the support provided through the majority of the Group’s revenue being received in United States Dollars.”

The Euro fell below US dollar in July after Russia’s reduced gas supplies from its main pipeline to Europe.

He said inflation, particularly with respect to food and fuel, has increased expenses across the Group, but once again our United States Dollar revenue provides a level of protection. He pointed out that bookings for the remainder of the financial year remain robust with the subsequent financial year showing similar resilience. “The residual supply chain constraints and the economic, political and health effects of the COVID- 19 pandemic continue to impact the Group.” However he said The Group’s strong cash position provides us with the opportunity to take advantage of any expansion opportunities that may arise.

During the six months ended August 2022, Chobe Holdings’ increase in profit before tax recorded by 467 percent to P79.9 million compared to a loss of P22,3 million in the same period last year.

The group generated P125 million from operations during the six months period and revenue increased by 377 percent to P234 million.

Gibson highlighted that the loosening of travel restrictions associated with COVID- 19 towards the end of the previous financial year has led to a significant improvement in the Group’s financial performance over the reporting period, with the halfyear results matching those achieved during the comparable period immediately pre- pandemic. “This financial performance has been underpinned by steadily improving occupancies across the Group’s wildlife properties with our premium Ker & Downey Botswana brand showing the earliest signs of improvement and the most resilience going forward.”

He revealed that there is a broad mix of both new and deferred bookings travelling on the group’s traditional pre- COVID- 19 rates model with international travellers now making up the majority of guests.

“However we continue to encourage Batswana to travel to our camps and lodges at much reduced rates.”