RTG defies economic headwinds, records 123% revenue growth

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By Alois Vinga

WORLD class hospitality concern, Rainbow Tourism Group (RTG) has defied the country’s economic headwinds, recording 123% revenue growth on the back of dynamic management practices.

Presenting a trading update for the period ended March 31 2023, RTG company secretary, Tapiwa Mari said despite the quarter being characterized by a trading environment reeling under inflationary pressures, the group managed to deliver healthy cash flows.

“Inflation adjusted revenues  grew by 123% to ZW$5,8 billion from just ZW$2,6 billion reported in the same period in 2022.The actual foreign currency grew by 115% when compared to the same period last year.

“Resort hotels are now approaching the traditional first quarter pre-Covid19 pandemic average levels of 38%, having achieved occupancy of 35% during the first quarter. These occupancy levels are expected to increase as the year progresses,” he said.

During the period, the group’s tech division (Gateway Stream) registered increased business activities driven by Gateway Stream Media and online shopping channels.

The platform continued to witness exponential growth in activities during the period under review, complimenting the hotels’ revenue generation.

The group’s tour operations, Heritage Expeditions Africa, increased its business volumes by 368%, owing to increased activity uptake around the country.

“Despite the unfavorable macro-economic conditions, the group delivered healthy cash flows to support the refurbishment of hotels as well as funding pipeline growth initiatives.

”The business activity during the quarter under review is synonymous with tourism industry low season which usually has subdued demand,” said Mari.

RTG expects the second quarter to continue registering significant growth in revenues ahead of quarter one amid expectations to benefit from increased activities in the tourism industry mainly driven by the government and NGO sector.

“The return of regional and international tourism coupled with pre-election business is expected to boost the Group’s prospects going forward. The contribution from the group’s tour operations and tech subsidiaries is expected to continue to increase and positively impact overall group revenues,” added Mari.