Listed hospitality group, Rainbow Tourism Group (RTG)’s hotel occupancy rate for the first quarter (Q1) 2023 remained flat with comparable period levels last year at 43 percent as post-pandemic recovery remains somewhat lethargic due to macro- economic pressures.
The hospitality industry endured a tough spell during the pandemic due to travel restrictions but has gradually improved with the reopening of the economy.
However, inflation and weaker spending power has taken a toll on the hospitality industry.
Nevertheless, the group’s resort hotels which are predominantly located in Victoria Falls have shown strong post COVID-19 recovery reaching 35 percent slowly approaching the traditional first quarter pre-COVID-19 pandemic average levels of 38 percent.
City hotels continue to drive activities for the Group mainly through conferencing activities.
“The resurgence of currency instability resulted in significant pressure on operating margins, constrained liquidity and pricing distortions in the general business environment,” the group said.
Revenue for the period grew by 123 percent to ZW$ 5.8 billion in inflation adjusted terms from ZW$ 2.6 billion same period a year earlier.
The actual foreign currency revenues grew by 115 percent as the economy rapidly polarized.
“The Group’s tech division (Gateway Stream) registered increased business activities, driven by Gateway Stream Media and online shopping channels.”
The return of regional and international tourism coupled with pre-election business is expected to boost the Group’s prospects going forward.