RTG posts $249m profit

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By Alois Vinga

LISTED hospitality concern, Rainbow Tourism Group (RTG) has hailed Zimbabwe’s recovering economic fundamentals amid a resounding performance which saw the group recording a $249 million profit before tax.

Presenting the group’s financial performance for the year ended December 31, 2021, RTG chairman, Arthur Manase credited economic stabilization efforts being employed authorities amid plans to harness the gains for the company’s good.

“The country also recorded a significant reduction in year-on-year inflation, from 348.6% in 2020, to 60.7% in 2021. Additionally, improved access to foreign currency through the foreign currency auction system resulted in the stabilisation of the local currency against other currencies.

“The group will continue to capitalise on existing opportunities which include the growing potential of conducting business online as well as the continued opening up of the economy in the various sectors that are relevant to our business,” he said.

Manase said during the review period, the group closed the year in a strong trading position with performance being driven by three major contributors namely; technological innovation by way of the Gateway Stream mobile and web platform; the traditional hospitality business with its robust cash flow streams; and the new tour operations arm that is a key enabler of travel and experience tourism.

“The Group posted revenues of ZW$2,8 billion with historical ZW$2,4 billion in 2021 against ZW$2,4 billion historical ZW$740 million in 2020 which is a 17% growth compared to prior year.

“This revenue performance was achieved despite the Group losing an equivalence of five trading months during level 4 lockdowns. The 17% revenue growth was positive when read together with the United Nations World Tourism Organisation’s (UNWTO) 2021 report that Global and Africa tourism increased by 4% and 12% respectively over prior year,” said Manase.

The good performance is in line with the group’s drive to dominate domestic tourism development through its owned and partner hotels, together with the tour operations arm: Heritage Expeditions Africa (HExA).

In addition, the group intends to use the domestic market as a launch-pad to drive Gateway Stream revenues from regional and international markets, through a strategic activation of regional rooms and retail products on the online platforms.