At the time, many companies and corporations were reeling under the negative effects of the covid-19 pandemic, Rainbow Tourism Group (RTG) has continued to defy the odds, trading profitably.
In a statement accompanying the group’s trading report for the period ended 30 September 2020, RTG company secretary, Napoleon Mtukwa disclosed that the group had managed to trade profitably despite the pandemic.
“During the nine months to September 2020 the group’s inflation adjusted revenues closed at ZWL$586 million,” said Mtukwa.
“The EBTDA (earnings before interest, taxes, depreciation, and amortization – a measure of a company’s overall financial performance) margin for the period under review closed at 35% margin, which is 3 percentage points above prior year.
“This resulted in a positive cash position which was driven by the cost containment measures. Despite the challenging operating environment, we are pleased to report that the group managed to close the nine months in a profit position.”
However, the group’s cumulative occupancy, Mtukwa said, declined to 22% from 47% recorded in the prior year.
“The main driver of the decline was the global Covid-19 lockdown restrictions,” he explained.
“The temporary closure of the Rainbow Towers Hotel and Conference Centre (which is 40% of the business) for refurbishment during the first three months of the year, also contributed to the decline in occupancy.”
Mtukwa said RTG will be offering holiday packages so that they will end the year on a high note.
“The group will be driving holiday packages around the country in order to enable residents to get outdoors and experience their country,” he said.
“In recognition of the long cycle nature of the international bookings, the group remains actively engaged with our regional and international tour operator partners and representatives in filling the long pipeline.
“So far reports indicate that Africa remains amongst the continents least affected by the pandemic. The group’s strategy for the next 18 months will focus on emerging opportunities that are awash on the African continent.”
He said the resumption of flights would be a plus on their profitability; “To capitalise on this development, the group will drive local and regional holiday packages into the Victoria Falls region,” he said.
He added that the group is expanding the scope of the Gateway Stream platform with the launch of Gateway Stream Music in December 2020 which will further enhance the group’s revenue inflows.