Tourism industry remains optimistic

ZIMBABWE’S hoteliers say they remain optimistic about future prospects, even as the country’s economic crisis deepens.
Financial results of Rainbow Tourism Group (RTG), African Sun Limited (ASL) and Meikles released last month indicated that the hospitality industry’s trump card – in the face of volatilities on the home front – is a sharp rise in international arrivals in the past nine months, which has been bolstered by improved perception on the country.
This follows radical policy changes implemented by Zimbabwe’s new administration.
Sijabuliso Biyam, RTG chairman, said the group was encouraged by the opportunities that are being presented by an economy that is opening up to the world.
“Despite the challenges endured during the previous year within our local operating environment which include shortages in foreign currency and cash as well as the resultant distortions in prices, we are optimistic of a bright future,” he said
Biyam noted that the acceptance by the international community of the new government with its efforts of re-engaging the international community and the group’s optimism of business-friendly government policies contribute to creating an enabling environment for the hotel industry’s business.
“The level of engagement and accountability being initiated by government as demonstrated by the commencement of weekly post-cabinet updates to the nation are a welcome development,” he said.
The southern African country’s hospitality industry registered a three percent performance growth in the first quarter of 2018 compared to the previous year as a result of increased arrivals on the back of renewed confidence in the country, according to figures from the Zimbabwe Tourism Authority.
Edwin Shangwa, ASL’s chief executive, said all the group’s revenue streams had increased due to increased bookings.
Average Daily Rate (ADR) growth was mainly due to the increase in the foreign rooms which come at better ADR and yield during times of high demand.
“We expect a good performance in the peak season, however, the growth will not be as high as in the first half as we are already operating at high occupancies in the second half and there is limited room for growth. In summary, we will post an equally good performance for the second half, if the current activity and momentum increases,” said Shangwa.
He said the industry was price sensitive and ASL was very cautious in reviewing room rates.
Zimbabwe’s tourism industry has been on an upward performance trajectory, with the country targeting at least 2,8 million foreign tourist arrivals by December 2018 compared to about 2,4 million prior period last year.
John Moxon, Meikles Limited executive chairman, said he was looking forward to a brighter future with the company expecting repayment of its debt from government which has been outstanding for two decades.
“The receipts of funds from government will be material to the future direction of the entire group,” said Moxon.
He said a refurbishment programme for The Victoria Falls Hotel would commerce before the end of the year and the group anticipate increased business.
“…Of greater significance a project to enlarge the hotel with additional accommodation is currently in the initial stages of planning and implementation is to be expedited. Both hotels (Meikles and The Victoria Falls Hotel) are benefiting from a growth in occupancy during the first months of the new financial year,” Moxon said.
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