CRESTA MAKES A SLOW TURN TO RECOVERY
The group relies on the lifting of SoPE to fully bounce back
Cresta Marakanelo Hotels’ operations for the first half of the year has recorded a positive trajectory, though the company remains in the woods. Authorities at the company have advised that consolidated loss before tax has improved. “Shareholders are advised that the unaudited consolidated loss before tax of Cresta Marakanelo for the six months ended 30 June 2021, is estimated to have reduced by between 15 percent to 25 percent,” said Cresta Marakanelo to shareholders. Last year, during the first half of the year, Cresta Marakanelo recorded loss before tax of P42.5 million reported for the six months ended 30 June 2020. Cresta Marakanelo has attributed the improvement to uninterrupted trading compared to last year which was punctuated by closure of the hotels for normal operations between April and June, during the nationwide COVID-19 pandemic lockdown. Analysts are also optimistic that with the desired conditions, the tourism industry will bounce back and support economic growth. “We are hopeful that the lifting of the State of Public Emergency (SoPE) and roll-out of the
vaccination program will fast track the reopening of the sector,” said Tshegofatso Tlhong, Portfolio Manager at Kgori Capital. Kgori Capital further highlighted that the hospitality sector continues to face significant headwinds as the sector remains virtually closed off to international tourists and events, adding that another year of marginal occupancies will put players in very difficult positions.
The tourism sector has over the years been
targeting the high end market with its flora and fauna but with international travel restriction, the sector has witnessed a plunge. Companies’ financials indicate that Cresta Hotels recorded a loss of P63.0 million for the full year 2020, as a result of COVID-19 containment measures while another player, Chobe recorded a full year loss of P67.7 million as revenues declined by 92.6 percent.