RAINBOW Tourism Group (RTG) recorded a 92 percent increase in US dollar revenue to US$5,2 million for the five months ended May 31, 2023 from US$2,7 million recorded in the same period last year.
The hotelier’s chief executive, Tendai Madziwanyika, told The Financial Gazette at the group’s recent annual general meeting that the US dollar revenue figures have also grown compared to the pre-Covid-19 figure of US$4 million.
Tendai Madziwanyika, the Rainbow Tourism Group (RTG) chief executive
“This is speaking to a growing and sustainable business model. The US$5,2 million this year was US$4 million in 2019, reflecting a 30 percent increase.
This reflects that we are now surpassing our pre-Covid-19 numbers. The foreign revenue is now about 51 percent of the group’s total revenue,” Madziwanyika said.
This comes as there has been an increase in the use of the greenback in the economy, with most companies generating more US dollar revenue.
The group’s occupancy levels remained flat at 46 percent during the period, but above the pre-Covid-19 level of 44 percent as the hospitality industry continues to gradually improve after suffering from a tough spell during the pandemic era.
Madziwanyika highlighted that the company continues to focus on building a sustainable balance sheet with manageable debt levels to ensure profitability and improvement in cash flows.
Meanwhile, the group is eyeing lucrative business opportunities during the harmonised elections due end of this month, amid plans to implement an aggressive expansion strategy.
Madziwanyika recently revealed that its hotels have sustained a record of offering world-class services to the country’s elections officials over the past years, hence the intention to capitalise on such a reputation again this year.
“Heritage Expeditions Africa will provide transfers and activities, while hotels are geared to meet the accommodation and meal requirements of institutions and individuals alike that will be in volved in the elections.
“Over the years, the Rainbow Towers Hotel and Conference Centre has been used as the National Command Centre for the elections and these ones will be no exception. The group anticipates a total rebound to pre-Covid-19 levels in 2023, with positive performance across all key indices,” he said.
Going forward, the group is looking at investing in carefully selected room opportunities, pushing for heightened investment in the right technology, for example artificial intelligence, and expanding into strategic markets for procurement and access to global markets.