RTG's revenue jumps 7%

Published: 14 June 2014

RAINBOW Tourism Group local operations' revenue for the four months to April increased to $8,2 million helping the hospitality company record a 7 percent jump to $8,7 million over the same period last year.

In the corresponding period the previous year, RTG recorded revenues of $8,1 million with the Zimbabwean component contributing $7,7 million.

RTG chief executive officer Mr Tendai Madziwanyika told shareholders at the group's annual general meeting yesterday that the number of rooms sold in the first four months of 2014 increased by 16 percent to 44 percent from 38 percent for the same period last year.

"This achievement was because of improved performance by the resort hotels and the Rainbow Towers Hotel and Conference Centre," said Mr Madziwanyika.

"The A ‘Zambezi River Lodge recorded revenue growth of 25 percent over the corresponding period last year while the Rainbow Towers Hotel and Conference Centre recorded a 10 percent growth in turnover," he said.

RTG recorded significant growth in conferencing business during the period under review boosted by several low seasons promotions. The group anticipates this trajectory to continue throughout the year as historically second half revenues contribute 60 percent towards annual revenues.

"This increase resulted in growth of revenues of 12 percent from prior year for food and beverage for the Rainbow Towers Hotel and Conference Centre. The Bulawayo Rainbow Hotel performed well during the 2014 Zimbabwe International Trade Fair period. It achieved a 24 percent increase in revenues as compared to ZITF 2013," he said.

E-commerce revenues for the period increased by 19 percent over the prior year while international arrivals into RTG grew by 13 percent over the same period last year.

Revenue contribution for the quarter from the South African office grew 51 percent over prior year while performance for the Rainbow Hotel Mozambique has been depressed.

The group says it has since implemented revenue generation strategies to drive the Mozambique business and projects positive take-off in the business unit's revenues in the months ahead.

On market share, RTG achieved a first quarter market share of 28 percent, which was a 22 percent increase from the 23 percent achieved during the same period in2013. The Group's fair share is 2 percent.

Mr Madziwanyika said the group is chasing a target of 38 debtors' collection period having reduced to 49 days as at 30 April from 64 days in the comparative period last year.

To contain costs, RTG has engaged in a voluntary retrenchment exercise for the Rainbow Towers Hotel and Conference Centre. The chief executive officer said the response has been positive and anticipates that the hospitality company will achieve its intended retrenchment numbers. He, however, refused to release more details on the retrenchment exercise.
- The Herald

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