RTG revenue shoots up 17% amid headwinds
HOTELIER Rainbow Tourism Group (RTG) recorded 17% growth in revenue despite losing nearly half a year of trading due to Covid-19 induced lockdowns.
In a statement accompanying the company’s financial results for the period ending December 31 2021, RTG chairman Arthur Manase said the Group had posted revenue of $2,8 billion during the period compared to $2,4 billion during the same period last year, which was a 17% growth.
“This revenue performance was achieved despite the Group losing an equivalence of five trading months during level 4 lockdowns,” Manase said.
“The 17% revenue growth was positive when read together with the United Nations World Tourism Organisation’s 2021 report that global and Africa tourism increased by 4% and 12% respectively over prior year.”
However, RTG’s profit after tax during the period dropped 54% to $249 million compared to $546 million posted last year.
Manase said the Group closed the year in a strong trading position with the performance spurred by technological innovation by way of its Gateway Stream mobile and web platform, traditional hospitality business and its new tour operations arm.
He said the hotels business recorded a 29% growth in occupancies to 31% from 24% recorded in 2020.
“The Group’s major source of business was the domestic market driven by city hotels.
“Business volumes improved significantly in the last quarter of the year buoyed by accommodation and outside catering,” Manase revealed.
“It is anticipated that rooms and conferencing businesses will continue to recover in city hotels into 2022.”
The Group, he said, spent $92 million towards capital expenditure in 2021.
The projects, he said, were mainly focused on capacitating the new business units as well as the basic care and maintenance of the hotels.
Manase said the remaining work of upgrading the Rainbow Towers Hotel and Conference Centre which began in 2020, and stalled by Covid-19 lockdowns, have resumed and was expected to be completed during the second half of the year.
This, he said, included the refurbishment of suites as well as the installation of a third elevator, which was installed and commissioned on March 30, 2022.
On the Groups’ New Ambassador Hotel, Manase revealed that it was in the process of refurbishing the hotel’s rooms and public areas.
“The installation of a brand new guest elevator commenced in January 2022 and is now complete.
“This is the first time since its construction that the hotel replaced its elevator,” he said.
“The rooms’ refurbishment works will commence in the second half of the year to complete the facelift of the hotel and firmly position it as a city centre boutique business hotel.”
Manase said the Group also intended to refurbish Kadoma Hotel and Conference Centre and this would focus on the replacement of the entire roofing and accompanying aspects such as ceiling modernization and freshening of the affected rooms.
He said the RTG had declared a dividend of $0,06 per share in respect of the financial year ended December 31 2021.
The dividend will be payable in full to all the ordinary shareholders of the company registered at the close of business on April 29 2022.
In his outlook, Manase said RTG is well positioned to grow while maintaining financial strength going forward.