Zimbabwe’s Rainbow Tourism Group (RTG) posted an inflation adjusted 95% rise, $164 million pre-tax profit, during the half year ended as at June 30th 2021 from $84 million pre-tax profit prior the same period.
The second largest hospitality chain last week stated that the tourism sector was still healing from Covid-19 induced punches which forced governments worldwide to pause and ground international travel while Zimbabwean operators experienced US$1 billion in write downs as traffic fell by 90%.
However, RTG managed to push revenues up by 53% to $706 million from $462 million during the half year ended as at June 30th this year, due to their tech based diversification strategy.
Arthur Manase the current chairman, confirmed the optimistic offshoot curtailing out of the RTG’s digital operation, Gateway Stream, which was described as a deliverer of passive, perpetual and active income that provides access to markets and connects customers with various products and services.
The platform offers various products and services such as booking of hotels, restaurant reservations, online shopping, music platform, online auctions etc.
“The group posted a profit before tax of $164 million, 95% above $84 million posted in 2020. The group posted revenues of $706 million, 53% above $462 million posted during the same period in 2020,” said Manase.
He further highlighted how the covid-19 impact pushed down global arrivals by 85% and how the group was impressively resilient and well performed during the first half.
“The unprecedented impact of the Covid-19 pandemic has negatively affected international tourist arrivals which, has reduced by 85% in January May 2021 compared to the same of pre-pandemic year 2019.
“Despite the grim picture presented by the pandemic immense resilience as shown by a strong performance during the first half,” he further noted.
RTG is listed on the Zimbabwe Stock Exchange list and it operates some of Southern Africa’s impressive tourism destinations which include the 5 star Rainbow Towers hotel and the exclusive A ‘Zambezi River lodge in Victoria Falls.
Previously the group presented a positive working position of $172 million from $90 million, where the improvement was driven by prudent cash flow management, according to him.
Following an impulsive rise in demand from the middle of the first half of the year which defied the peak of the third wave, Manase said the occupancy rates increased by four percentage points during the period under analysis.
Strengthened by the cost reduction measures, gross margins previously rose to 67% during the period under review from 63%, however, earnings before interest, tax, depreciation and amortization slowed from $177 million to $161 million in 2020.