Rainbow Tourism Group sets aside US$260K dividend payout  

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By Alois Vinga

LEADING hospitality group, Rainbow Tourism Group (RTG) has set aside US$260 000 towards shareholder dividend payouts effectively making it to the list of a few local liquid entities with a reasonable return on shareholder value.

At a time when several local companies are struggling to break even, the RTG board chairperson Douglas Hoto announced the latest development while presenting the group’s performance for the period ended December 31 2023.

“The Zimbabwe dollar amount is now payable in the new currency Zimbabwe Gold (ZiG). The second and final dividend amounts are US$260,000.00 (US$0.000104 per share) and ZiG1, 761, 331.57 (ZiG0,00071 per share). A separate dividend announcement will be made regarding the payment of the dividend,” he said.

The decision was reached at a meeting held on 25 March 2024, where the board resolved to declare the second and final dividend for the year ended 31 December 2023.

The dividend is payable to all ordinary shareholders registered in the books of the Company.

RTG has been growing from strength to strength over the last few years and steadily gravitating towards the attainment of the country’s top hospitality powerhouse.

During the reporting period, the Group achieved total revenue of ZWL266.3 billion, a 126% growth on revenue generated in the prior comparative period of ZWL117.7 billion. This performance comprises of rooms revenue growth of 281% to ZWL106.4 billion (2022: ZWL27.9 billion), food and beverage revenue growth of 81% to ZWL139.2 billion (2022: ZWL 76.9 billion) and, other revenues income growth of 61% to ZWL20.7 billion (2022: ZWL12.9 billion).

The group witnessed a substantial increase in foreign currency business driven by regional and international business which together grew by 129%.

Resort hotels experienced a notable performance improvement, with occupancy increasing by 44% to 52% in 2023 from 36% in 2022. City hotels, despite recording increased revenues, posted lower occupancy, primarily due to the reduced amount of business activity during the first half of the year.

“The group’s financial position remains strong, with the current ratio improving to 1.19 from 1.01 in 2022. This improvement is attributable to prudent cash flow management, reflecting the Group’s commitment to maintaining a strong financial footing,” Hoto added.