Hotel group, the Rainbow Tourism Group (RTG) has forecast robust revenue performance in 2024 driven by the recovery of regional and international business.
This comes as the group in the year ended December 31, 2023 achieved a 126 percent growth in revenue to $266,3 billion from $117,7 billion in 2022 largely driven by growth rooms, food and beverage turnovers.
For the year under review, rooms revenue grew 281 percent to $106,4 billion from $27,9 billion in 2022 while food and beverage revenue grew 81 percent to $139,2 billion from $76,9 billion in the prior year.
Other revenues grew 61 percent to $20,7 billion from $12,9 billion in 2022.
Group chairman Mr Douglas Hoto said the group witnessed a substantial increase in foreign currency business and this was driven by regional and international business which together grew by 129 percent.
“Resort hotels experienced a notable performance improvement, with occupancy increasing by 44 percent to 52 percent in 2023 from 36 percent in 2022.
“City hotels, despite recording increased revenues, posted lower occupancy, primarily due to the reduced amount of business activity during the first half of the year,” he said.
Mr Hoto said the group maintained its gross profit margin at 72 percent over the past two years which is within the industry benchmarks.
He said the gross margins were achieved despite a year-on-year inflation rate of 314 percent as of December 31, 2023.
“The gross margins were sustained through rigorous cost reduction initiatives aimed at mitigating the effects of escalating market prices and unstable foreign currency exchange rates,” said Mr Hoto.
During the year under review, the group achieved an Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of $36,9 billion, marking a 288 percent increase from the $9,5 billion recorded in 2022.
Mr Hoto said the growth in EBITDA was primarily fueled by cost saving initiatives and an increase in revenues.
He noted that the group’s financial position remains strong, with the current ratio improving to 1,19 from 1,01 in 2022 and the improvement is attributable to prudent cash flow management, reflecting the group’s commitment to maintaining a strong financial footing.
Mr Hoto said the 300kva solar plant at Kadoma Hotel and Conference Centre reduced the overall hydro-generated electricity consumption by an average of 40 percent.
“This marks a significant milestone towards greening the hotel and is also proof of concept for future similar projects,” he said.
He indicated that domestic business has proved to be consistent post-COVID-19 pandemic and is anticipated to grow driven by the national infrastructure development projects being rolled out by the Government of Zimbabwe.
Mr Hoto said the group can reap significant benefits from the growth of leisure tourism in the Victoria Falls market and national conferencing activities.
He noted that volumes are projected to improve for city hotel accommodation and conferencing activities and the company will explore collaborations with partners and leverage on strategic alliances and innovative partnerships to drive sustainable growth and enhance its competitive position in the market.
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