Mishma Chakanyuka, Staff Writer 
HOSPITALITY group African Sun (AfSun) says it recorded a 12 percent increase in revenue to US$14,6 million in the quarter to September 30, 2023, spurred by higher demand for conference services and the August 2023 election business.
Domestic business generated 65 percent of revenue, while international business was 35 percent compared to 77 percent and 23 percent in the same period last year, respectively.
“Of the domestic business, 55 percent and 45 percent thereof was generated in US dollars and Zim dollars respectively.
“On a year-to-date basis, the group earned 65 percent of the revenue in US dollars,” company secretary and governance executive Venon Musimbe said in a trading update.
On an aggregate basis, 71 percent of the revenue generated by the group was in US dollars, reflecting an underlying economy that is gravitating towards the greenback.
Musimbe said strong domestic business and the steadily recovering international arrivals contributed to the improved group performance for the period.
He said AfSun remains debt-free, representing opportunities for financial leveraging opportunities in the months ahead.
“The cash-generating capacity of the business remains strong and has been able to finance the ongoing hotel refurbishment initiatives from internally generated cashflows,” Musimbe said.
Meanwhile, the group remains focused on its strategy to upscale the state of its hotel properties through ongoing refurbishment programmes.
Musimbe said the first phase of the US$4,2 million Hwange Safari Lodge (HSL) 100 rooms refurbishment had been completed.
He added that the group is now shifting its focus to the second phase of the HSL refurbishment, which seeks to deliver spruced-up public areas before it commences the eagerly anticipated Elephant Hills Resort and Conference Centre refurbishment.
In the outlook, African Sun is expecting the recovery of international arrivals from traditional source markets to continue based on the United Nations World Tourism Organisation Barometer scenarios for 2023, which are anticipating international tourist arrivals to reach 80 to 95 percent of pre-pandemic levels.
On the domestic front, Musimbe said the extension of the use of the US dollar from 2025 to 2030 addresses the significant currency uncertainty within the country which had resulted in financial institutions significantly curtailing lending activities.
newsdesk@fingaz.co.zw
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