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RTG Posts Strong Recovery As Q1 Earnings Match Pre-Pandemic Levels

Diversified leisure group, Rainbow Tourism Group (RTG) limited registered its strongest performance for the first quarter (Q1) in two years since the start of the COVID-19 pandemic thanks to an improvement in hospitality business following the relaxation of stringent lockdown rules.

As a result, all the group’s business units of hotel and accommodation, streaming and adventure posted significant growth.

In its Q1 trading update, group revenues in inflation terms were 306 percent up at ZWL$ 1.4 billion from ZWL$ 344 million same period in 2021 as occupancies for the quarter matched pre-pandemic level of 43 percent in 2019.

“Hotel occupancies for the division closed 43 percent up, a growth of more than triple the times from 12 percent recorded in 2021. Group witnessed an increase in conferencing business across the city hotels while resort hotels had strong recovery during Q1-22. Improved prospects for travel internationally are expected to consolidate the recovery of the Victoria Falls market,” the group said.

The hospitality industry was the worst affected sector since the beginning of the COVID-19 as all travel was stopped to contain the spread of the virus.

The group’s digital platform, Gateway Stream’s contribution to total revenues to 11 percent from 5 percent in 2021 due to various partnerships that have been established.

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Heritage Expeditions Africa recovered significantly from the effects of COVID-19. To date the tour operations subsidiary has registered an increased uptake in activities to 1 548 pax (persons) sold to date up from 470 pax sold during the same period 2021.

“The Gateway Stream and Heritage Expedition will continue to drive revenue growth going forward. Through expansion of the two revenue streams, the Group aims to generate increased cash flows as well as consolidate its position as a diversified tech-driven hospitality entity,” the group said.

The group invested in modernization of its product portfolio by installing a brand new guest elevator at New Ambassador Hotel and new service elevator at Rainbow Towers Hotel and Conference Centre. It rolled out a 300 megawatt solar plant at Kadoma Hotel and Conference Centre.

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