Foreign tourist arrivals boost African Sun

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TOURISM and hospitality group African Sun’s revenues have continued to grow on the back of increased foreign arrivals, managing director Edwin Shangwa has revealed.
Shangwa told shareholders at the group’s 46th annual general meeting last week that the company’s revenue had grown by 30 percent during the first five months of 2018.
He attributed the revenue growth to an increase in occupancy levels.
“Revenue was up 30 percent to $20,97 million from $16,74 million achieved during the same period last year…the increase in revenue was due to growth in occupancy to 53 percent from 43 percent in the same period last year,” he said.
This comes as foreign arrivals have been increasing since the resignation of Robert Mugabe in November last year, with the former president’s exit sparking hopes of a new political and economic environment in the country.
Under Mugabe’s administration the country’s political and economic landscape had deteriorated to the detriment of foreign tourists’ interest in the southern African nation.
Over the first five months of the year, the group’s foreign arrivals grew by 17 percent.
Local occupancy was up 19 percent while its foreign occupancy was up 24 percent.
Consequently, African Sun’s domestic revenue grew by 28 percent from $9 million to $11,6 million while foreign revenue was up 32 percent from $7,12 million to $9,72 million.
The group’s revenue grew by 19 percent to $51,83 million for the year ended December 31, 2017 after the group’s international tourist arrivals increased by 19 percent to 93 823 up from 78 730 in 2016.
Shangwa said the group’s performance improvement was notwithstanding the pressures brought about by the current foreign currency shortages.
“Local market improved in performance albeit at a low pace, as it remained under pressure from foreign currency shortages…the business is now under pressure from cost increases due to the impact of foreign currency shortages,” he said.
The group has continued to upgrade its products with refurbishment of Holiday Inn Mutare “progressing well” and expected to be completed by the end of July this year. Improvements are also in progress at the Caribbea Bay Resort and at the Great Zimbabwe Hotel.
Refurbishment at the Victoria Falls Hotel is expected to commence in the fourth quarter of 2018.
The group says it is going to create additional conference facilities at Hwange Safari Lodge which is also expected to be completed in the fourth quarter of 2018.
“The reason we are creating that additional conference capacity is because we would like to give our customers an opportunity of a wider selection of rotational conferencing,” Shangwa said.
Meanwhile, Herbert Nkala has retired as board chairman of the group after more than three years on the position.
“As I leave the company that I love, I am pleased to be doing so when it is at its best performance in more than a decade. I am indeed privileged to have been part of the spectacular recovery of the company. This also given the fact that the prevalent business environment is pointing north,” he told shareholders last week.
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