Tourism and Hospitality management group, Rainbow Tourism Group (RTG) is upbeat of positive performance going forward offsetting the negative impacts of the Covid-19 pandemic in FY2020.
The Rainbow Tourism group which is located in Zimbabwe, has an extensive portfolio of owner-managed or leased hotels and conference facilities in Zimbabwe and Mozambique, as well as a tour operator company.
As countries implement Covid-19 vaccinations to its residents as part of efforts to limit the spread and severity of the pandemic, the group is hopeful of the economic recovery with anticipation healing on the travel and tourism sector across the globe.
“The tourism industry was adversely affected by the Covid-19 pandemic. While the current situation is likely to persist into early 2021, we remain confident that the tourism industry will in time rebound and set the hotel business on a path towards recovery.
“A glimmer of hope has come from the ongoing vaccine efforts around the world and in Zimbabwe. This process is expected to facilitate the quick recovery of economies worldwide as well as the gradual recovery of international travel,” said chairman Arthur Manase in a statement accompanying the group’s financials for the year to December 31, 2020.
As the group readies itself for economic healing, it is also banking on the Gateway Stream Platform to play a significant role recovery for the sector rebound.
“Many travel and tourism players will require visibility when the industry rebounds. Gateway Stream seeks to be a significant player in that space alongside global e-commerce giants that provide access to hospitality and leisure products.
“The group will continue to explore the various opportunities presented through its digitization initiatives as driven by the Gateway Stream.
“These opportunities are all supported by the multi-app architecture of the Gateway Stream ensuring value to all its various stakeholders,” he noted.
The Gateway Stream web and mobile application is a global diversified and unified online business ecosystem that delivers perpetual, passive and active income through the ownership of markets where it connects customers with the highest quality of products and services.
Gateway Stream has been positioned as a driver of revenue and continues to capitalize on the opportunities presented by e-commerce.
According to Manase the platform entails various revenue generating channels which are expected to drive revenues in 2021 and beyond.
“Additionally, the Group redeployed staff from those hotels that were closed into Gateway Stream to capacitate different regions across the country thereby leveraging the existing human resource base.” Read part of the statement.
Meanwhile, during the financial year to December 2020, RTG recorded a 66 percent revenue decline to $1,1 billion reflective of the challenges experienced during the year posted by Covid-19.
Occupancy for the year under review closed at 26 percent compared to 47 percent recorded in the prior year.
The pandemic affected all sectors but the travel, tourism and hospitality sector was one of the hardest hit, add economies effected travel bans to limit the spread of the pandemic.
Travel and Hospitality industry was adversely affected with players in the sector closing up due to Covid-19 imposed restrictions, with RTG two hotels in the resort town of Victoria Falls.
“The group enjoys a superior location advantage as 80 percent of its rooms stock sit on the commercial trunk of the country – the Harare Bulawayo trunk, with optimum dispersion.
“As a result, the group benefited from the residual economic activity during the hospitality slowdown in 2020,” Manase noted.
Profit after tax went down 61 percent to $352 million from $913 million.
RTG did not declare a dividend in order to preserve capital during economic uncertainties due to effects of Covid-19 pandemic.
Rainbow Tourism Group was established in 1992, and is a major player in Zimbabwe’s Tourism Industry . listed on the Zimbabwe Stock exchange , the company has spread its wings into the regional markets through management contracts and Strategic Alliances . The group operates four distinct quality hospitality brands and has positioned itself as the leading provider of Unique African Hospitality.
RTG was formed as part of the Government’s commercialization programme. This dynamic and visionary company rose within six years from three hotels units and a tour operator company in 1992, to become Zimbabwe’s second largest hospitality chain by 1998.
it was Incorporated in 1991 as Zimbabwe Tourism Investments Group (Private) Limited and since then the Group assumed control of the commercial business and assets of the Zimbabwe Tourism Investments Group, as a parastatal, then responsible for the promotion of tourism in the country.