Paul Nyakazeya, Group Digital Editor 
AFRICAN Sun Limited (Afsun) says outlook for the tourism sector remains uncertain as disruptions from the Covid-19 pandemic have persisted.
In a trading update last week, the hospitality group said the contagion had brought about uncertainties, which makes it difficult to forecast future performance, even in the short to medium term.
“The group anticipates continued disruption to travel and tourism in the months ahead due to the Covid-19 pandemic, as the future is very uncertain,” Afsun said.
“The full year to December 31, 2021 performance will be anchored on domestic business with government, NGO and corporate business being the main drivers, it is encouraging that we have noted an improvement in domestic leisure travel post lockdown.”
Revenue for the five months closed at $739 million (inflation adjusted), six percent ahead of the revised budget and 41 percent below the same period for the full year to December 2019, largely due to the impact of Covid-19.
The company, however, says given the strength of its systems and dedication of its workforce, it was well-positioned to navigate the current crisis and ultimately recover stronger when the world begins to travel again.
According to the United Nations World Travel Organisation, international business is set to gradually resume starting from the fourth quarter of the year as airlines start to rebuild their networks.
“The growth trajectory and volume rebuilding phase is likely to be flatter due to lockdowns, and low disposable incomes. Power, fuel and foreign currency shortages will impact on service delivery going forward, however, we have put in place mechanisms to mitigate these factors against our business,” Afsun said.
In the trading update, the company referenced the period ended May 2019, since it hardly traded in 2020.
“Occupancy for the five months ended May 2021 was 22 percent, down by 21 percentage points compared to 43 percent recorded for the same period in 2019. This was largely due to Covid-19 induced lockdowns, as hotels recorded minimal occupancies of seven percent and 10 percent in January 2021 and February 2021 respectively,” Afsun said.
Revenue for the five months closed at $739 million (inflation adjusted), six percent ahead of the revised budget and 41 percent below the same period for the full year to December 2019, largely due to the impact of Covid-19.
“The revenue was split 95 percent and five between domestic and foreign respectively as we are now heavily reliant on the domestic market,” Afsun said.
The average daily rate for the five months under review was US$91, which was seven percent below the US$99 reported for the same period in 2019, “mainly due to lack of foreign business which comes at a premium rate”.
The group said a depressed economic environment which is characterised by a slowdown in economic activity, hyper-inflation, shortages of foreign currency and fuel also contributed to reduced volumes for the domestic market by 29 percent compared to 2019.
