RTG  injects ZW$2,6 billion for CAPEX,

Business Reporter

TOP hospitality concern, Rainbow Tourism Group (RTG) sunk US$1,7 million towards key facilities upgrades in a show of commitment to deliver value to all stakeholders.

Presenting the group’s performance for the half year’s ended June 30 2023, RTG chairman Douglas Hoto revealed that a significant amount was directed towards capital expenditure.

“The group allocated US$1,7 million (ZW$2,6 billion) towards capital expenditure (CAPEX) during the reporting period. The primary focus of our CAPEX investment was directed towards the enhancement of essential areas within all our hotels.

“Notably, this encompassed the completion of a comprehensive upgrade of the suites at Rainbow Towers Hotel and Conference Centre, including the prestigious presidential suite,” he said.

Hoto said the strategic investment underscores the group’s commitment to improving its facilities and services, with the overarching goal of elevating the overall guest experience to world-class status.

“Such targeted improvements align seamlessly with our long-term growth objectives, as we continue to position ourselves as leaders in the hospitality industry,” he said.

During the period under review, the occupancy rate closed at 46%, marking a modest 4% decrease when compared to the 48% achieved in 2022. Nevertheless, the Group displayed commendable resilience in maintaining business volumes, primarily driven by segments such as accommodation and outside catering.

Further bolstering the Group’s performance were the tours and activities business; Heritage Expeditions Africa, and the tech business; Gateway Stream.

The Group’s inflation-adjusted revenues for the first half of the year closed at ZW$49.6 billion, a growth of 41% from the inflation-adjusted ZW$35,2 billion realized in 2022 attributable to the group’s agility in the face of a difficult operating environment.

Gross margins for the review period stood at 65%, slightly lower than the 72% achieved in 2022 attributable to increased costs as driven by inflation during the reporting period.

“Going forward, the group holds an optimistic outlook regarding the resurgence of the industry in the second half of the year. The last half of the year usually contributes around 60% of the total business led by conferencing and foreign leisure business,” added Hoto.