Minister of Tourism and the Hospitality Industry, Dr. Eng. Walter Mzembi is leading a Zimbabwe delegation to the International Travel Bourse to be held in Berlin, Germany. The expo which has attracted over 185 countries and thousands of exhibitors kicks off tomorrow 08th of March and is ending on 12th of March.
Commenting on Zimbabwe’s participation at this global tourism exposition, the Zimbabwe Tourism Authority Head of Corporate Affairs Mr Sugar Chagonda said all is now set for the show and Zimbabwe is raring to go.
'We are very much excited to be participating at this year’s edition of ITB Berlin.
We defied all odds and prevailed over the obtaining challenges to maintain our presence in the European Market. The Zimbabwe delegation comprising the Minister, officials from the ZTA and the private sector is already on the ground in Germany ready for the expo' said Chagonda.
The Zimbabwe Tourism Authority spokesperson added that a total of fifteen companies from Zimbabwe are exhibiting at the ITB Berlin and these include the African Bush Camps, African Sun Hotels, Civil Aviation Authority of Zimbabwe, Rainbow Tourism Group, Shearwater Victoria Falls, Sikiliza Adventures, The Amalinda Collection, Wilderness Safaris, Zambezi Cruise Safaris, Zimbabwe International Trade Fair, Zimbabwe Parks and Wildlife Management Authority, Zimbabwe Tourism Authority and Zimbabwetravel.info.
The Zimbabwe Tourism Authority Chief Executive, Mr Karikoga Kaseke paid homage to the Zimbabwe tourism operators participating at the fair and expressed optimism that they will consolidate and grow their market share by securing lucrative business deals.
The ZTA boss added that Zimbabwe’s participation at the ITB Berlin and other related International travel fairs is premised on the need for continuous investment in aggressive marketing in order for the tourism sector to achieve the projected growth rate.
Germany contributes a significant 18% of European arrivals into Zimbabwe and ranks 3rd after the United States of America and the UK, contributing 26.355 arrivals recorded in the year 2015.
This however is still a drop from the 76 000 arrivals attained in 1999, which was Zimbabwe’s peak tourism year hence the need for aggressive marketing to regain the lost market share.
Over 10 000 exhibitors are attending this global forum which is also attracting cities, tour operators, airlines, hotels and various services advancing tourism businesses which makes it a significant and must attend show for any destination targeting the European market.
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Showing posts with label Rainbow Tourism Group. Show all posts
Showing posts with label Rainbow Tourism Group. Show all posts
Friday, 10 March 2017
Saturday, 24 September 2016
MOZAMBIQUE: Rainbow Tourism Group (RTG) Pulls Out Of Mozambique,
Zimbabwe Stock Exchange-listed hotelier, Rainbow Tourism Group (RTG), has pulled out of Mozambique, citing a worsening political situation and cuts in spending by the government of that country.
Mozambique is in the throes of a civil conflict between the government and the opposition Mozambique National Resistance (Renamo) guerrillas, that has seen thousands of people, notably in Tete province, fleeing into Malawi since October last year, reminiscent of the previous civil war which started in 1975 and ended in 1992.
The southern African country, one of the world's poorest, is also caught up in a debt scandal involving more than $2 billion in secret loans that came to light this year, leading to the International Monetary Fund suspending lending.
Mozambique's currency was hit hard by the debt crisis and aid suspension, with the Metical losing nearly 40 percent against the dollar since January and economic growth slowing to below four percent.
RTG chief executive officer, Tendai Madziwanyika, told The Source on Wednesday, that the developments forced the group to exit the country as part of a strategy to wean off loss making operations.
The hotelier, which now operates six hotels from nine a few years back, would refocus on the domestic market.
Madziwanyika, who also closed the Beitbridge Rainbow Hotel in May, said RTG would close its Mozambique operations at the end of this month. The group was only six years into a 10-year agreement to run the hotel under a management contract.
"By September 30 we will be out of Mozambique," the RTG CEO said. "The political disturbances are quite serious."
"We have also been affected by falling global commodity prices, which have affected spending from the mining industry. The (Mozambique) government has also cut spending, which affects us directly because this is a very large conferencing venue. Aid has also been cut. The Mozambican currency has also been falling against the United States dollar," said Madziwanyika.
He said the effects of a falling Mozambican currency was felt when the group translated revenues from the Mozambican operation into the greenback.
The operation posted a loss of $1,6 million in the previous financial year, he added.
The Rainbow Mozambique Hotel was the last of the group's management contracts outside Zambia.
RTG has recently pulled out of two units in Zambia, while it pulled out of the Democratic Republic of Congo about seven years ago.
"We are not looking at regional at the moment. We want to consolidate our domestic operations first and when we are strong we can now look at expanding into the region," said Madziwanyika.
He spoke ahead of the publication of the group's half year results for the period ended June 30, 2016.
Mozambique is in the throes of a civil conflict between the government and the opposition Mozambique National Resistance (Renamo) guerrillas, that has seen thousands of people, notably in Tete province, fleeing into Malawi since October last year, reminiscent of the previous civil war which started in 1975 and ended in 1992.
The southern African country, one of the world's poorest, is also caught up in a debt scandal involving more than $2 billion in secret loans that came to light this year, leading to the International Monetary Fund suspending lending.
Mozambique's currency was hit hard by the debt crisis and aid suspension, with the Metical losing nearly 40 percent against the dollar since January and economic growth slowing to below four percent.
RTG chief executive officer, Tendai Madziwanyika, told The Source on Wednesday, that the developments forced the group to exit the country as part of a strategy to wean off loss making operations.
The hotelier, which now operates six hotels from nine a few years back, would refocus on the domestic market.
Madziwanyika, who also closed the Beitbridge Rainbow Hotel in May, said RTG would close its Mozambique operations at the end of this month. The group was only six years into a 10-year agreement to run the hotel under a management contract.
"By September 30 we will be out of Mozambique," the RTG CEO said. "The political disturbances are quite serious."
"We have also been affected by falling global commodity prices, which have affected spending from the mining industry. The (Mozambique) government has also cut spending, which affects us directly because this is a very large conferencing venue. Aid has also been cut. The Mozambican currency has also been falling against the United States dollar," said Madziwanyika.
He said the effects of a falling Mozambican currency was felt when the group translated revenues from the Mozambican operation into the greenback.
The operation posted a loss of $1,6 million in the previous financial year, he added.
The Rainbow Mozambique Hotel was the last of the group's management contracts outside Zambia.
RTG has recently pulled out of two units in Zambia, while it pulled out of the Democratic Republic of Congo about seven years ago.
"We are not looking at regional at the moment. We want to consolidate our domestic operations first and when we are strong we can now look at expanding into the region," said Madziwanyika.
He spoke ahead of the publication of the group's half year results for the period ended June 30, 2016.
MOZAMBIQUE: Rainbow Tourism Group (RTG) Pulls Out Of Mozambique,
Zimbabwe Stock Exchange-listed hotelier, Rainbow Tourism Group (RTG), has pulled out of Mozambique, citing a worsening political situation and cuts in spending by the government of that country.
Mozambique is in the throes of a civil conflict between the government and the opposition Mozambique National Resistance (Renamo) guerrillas, that has seen thousands of people, notably in Tete province, fleeing into Malawi since October last year, reminiscent of the previous civil war which started in 1975 and ended in 1992.
The southern African country, one of the world's poorest, is also caught up in a debt scandal involving more than $2 billion in secret loans that came to light this year, leading to the International Monetary Fund suspending lending.
Mozambique's currency was hit hard by the debt crisis and aid suspension, with the Metical losing nearly 40 percent against the dollar since January and economic growth slowing to below four percent.
RTG chief executive officer, Tendai Madziwanyika, told The Source on Wednesday, that the developments forced the group to exit the country as part of a strategy to wean off loss making operations.
The hotelier, which now operates six hotels from nine a few years back, would refocus on the domestic market.
Madziwanyika, who also closed the Beitbridge Rainbow Hotel in May, said RTG would close its Mozambique operations at the end of this month. The group was only six years into a 10-year agreement to run the hotel under a management contract.
"By September 30 we will be out of Mozambique," the RTG CEO said. "The political disturbances are quite serious."
"We have also been affected by falling global commodity prices, which have affected spending from the mining industry. The (Mozambique) government has also cut spending, which affects us directly because this is a very large conferencing venue. Aid has also been cut. The Mozambican currency has also been falling against the United States dollar," said Madziwanyika.
He said the effects of a falling Mozambican currency was felt when the group translated revenues from the Mozambican operation into the greenback.
The operation posted a loss of $1,6 million in the previous financial year, he added.
The Rainbow Mozambique Hotel was the last of the group's management contracts outside Zambia.
RTG has recently pulled out of two units in Zambia, while it pulled out of the Democratic Republic of Congo about seven years ago.
"We are not looking at regional at the moment. We want to consolidate our domestic operations first and when we are strong we can now look at expanding into the region," said Madziwanyika.
He spoke ahead of the publication of the group's half year results for the period ended June 30, 2016.
Mozambique is in the throes of a civil conflict between the government and the opposition Mozambique National Resistance (Renamo) guerrillas, that has seen thousands of people, notably in Tete province, fleeing into Malawi since October last year, reminiscent of the previous civil war which started in 1975 and ended in 1992.
The southern African country, one of the world's poorest, is also caught up in a debt scandal involving more than $2 billion in secret loans that came to light this year, leading to the International Monetary Fund suspending lending.
Mozambique's currency was hit hard by the debt crisis and aid suspension, with the Metical losing nearly 40 percent against the dollar since January and economic growth slowing to below four percent.
RTG chief executive officer, Tendai Madziwanyika, told The Source on Wednesday, that the developments forced the group to exit the country as part of a strategy to wean off loss making operations.
The hotelier, which now operates six hotels from nine a few years back, would refocus on the domestic market.
Madziwanyika, who also closed the Beitbridge Rainbow Hotel in May, said RTG would close its Mozambique operations at the end of this month. The group was only six years into a 10-year agreement to run the hotel under a management contract.
"By September 30 we will be out of Mozambique," the RTG CEO said. "The political disturbances are quite serious."
"We have also been affected by falling global commodity prices, which have affected spending from the mining industry. The (Mozambique) government has also cut spending, which affects us directly because this is a very large conferencing venue. Aid has also been cut. The Mozambican currency has also been falling against the United States dollar," said Madziwanyika.
He said the effects of a falling Mozambican currency was felt when the group translated revenues from the Mozambican operation into the greenback.
The operation posted a loss of $1,6 million in the previous financial year, he added.
The Rainbow Mozambique Hotel was the last of the group's management contracts outside Zambia.
RTG has recently pulled out of two units in Zambia, while it pulled out of the Democratic Republic of Congo about seven years ago.
"We are not looking at regional at the moment. We want to consolidate our domestic operations first and when we are strong we can now look at expanding into the region," said Madziwanyika.
He spoke ahead of the publication of the group's half year results for the period ended June 30, 2016.
Friday, 15 July 2016
NSSA Looking For Tenants For U.S $50 Million Beitbridge Hotel Building
NATIONAL Social Security Authority (NSSA) is scouting for a tenant for its Beitbridge Hotel following the exit of Rainbow Tourism Group (RTG) from the property in May.
The closure of the hotel highlighted the crisis in the tourism industry that has seen room occupancy plummeting to unsustainably low levels over the years.
RTG's exit from Beitbridge came hard on the heels of an announcement by another ZSE listed stock, African Sun Limited, which closed its Holiday Inn Beitbridge Express Hotel in February citing prolonged losses by the facility.
Citing a market characterised by depressed occupancies, low margins as well as high operating costs as the major reasons for exiting Beitbridge, RTG said, in a statement last month, that the decision to close the hotel on May 31 was reached following wide consultations.
"Operational costs of the hotel were no longer sustainable. Since opening in January 2014, the hotel has incurred losses amounting to more than US$2 million," said RTG in the statement.
Constructed at a cost of US$50 million, the occupation of the136-roomed hotel, whose original cost went up by a staggering 16,3 times from an initial budget of US$3 million in 2007 to US$49 million at completion in 2014, could take long considering the general unstable national economic environment.
A hotel venture might not be viable bearing in mind that there are cheaper hotels across the border in Mussina and that occupancy levels in Zimbabwe are currently unsustainably low.
The hotel according to NSSA is located just a few metres from the A6 main road and close to the border post.
The property's details include a site area of +/-15 000 square metres, 144 rooms, casino, conference room, gym, resident banking hall and swimming pool.
An audit by Deloitte Advisory Services into the operations of the under-fire NSSA exposed shocking evidence of potential sleaze on the construction of the hotel. Elementary estimates indicate that the cost of each room at the hotel ended up at a shocking US$360 000 after total expenses rose to US$49 million.
In February 2007, NSSA and RTG entered a strategic partnership to construct the four-star hotel and a commercial centre in the border town, but the costs suddenly started rising, first to US$17 million,
then to US$33,4 million and US$44 million before finally hitting US$49 million in 2014.
NSSA controls 40 percent shareholding in RTG.
In the audit report, Deloitte said NSSA had pushed for the implementation of the project regardless of its lack of viability.
The auditor said some figures on the Beitbridge project were not adding up, although the auditors did not examine why the costs rose at a terrific pace at a time when the country had entered a period of
sustained deflation.
The auditors noted that the NSSA board had in October 2014 said it was aware of the exorbitant overheads after the main contractor, CZL, had failed to pay workers and subcontractors, forcing the authority to intervene by directly paying the workers and the subcontractors.
There was no evidence of any punitive action by NSSA on CZL, which failed to honour commitments to subcontractors.
Analysts said the payments made directly to workers and subcontractors could have been easily recouped from CZL.
The property also took seven years to complete, which is abnormal for such a small property. Government has failed to get to the bottom of what transpired, and appears to have taken a back seat amid indications of potential abuse of public funds.
The report said a feasibility study conducted before the project was initiated had clearly spelt out "that the hotel would be loss-making".
This view had forced RTG executives to refuse to manage the hotel, resulting in a fallout with the NSSA executives who were fired by the current board in 2014.
The closure of the hotel highlighted the crisis in the tourism industry that has seen room occupancy plummeting to unsustainably low levels over the years.
RTG's exit from Beitbridge came hard on the heels of an announcement by another ZSE listed stock, African Sun Limited, which closed its Holiday Inn Beitbridge Express Hotel in February citing prolonged losses by the facility.
Citing a market characterised by depressed occupancies, low margins as well as high operating costs as the major reasons for exiting Beitbridge, RTG said, in a statement last month, that the decision to close the hotel on May 31 was reached following wide consultations.
"Operational costs of the hotel were no longer sustainable. Since opening in January 2014, the hotel has incurred losses amounting to more than US$2 million," said RTG in the statement.
Constructed at a cost of US$50 million, the occupation of the136-roomed hotel, whose original cost went up by a staggering 16,3 times from an initial budget of US$3 million in 2007 to US$49 million at completion in 2014, could take long considering the general unstable national economic environment.
A hotel venture might not be viable bearing in mind that there are cheaper hotels across the border in Mussina and that occupancy levels in Zimbabwe are currently unsustainably low.
The hotel according to NSSA is located just a few metres from the A6 main road and close to the border post.
The property's details include a site area of +/-15 000 square metres, 144 rooms, casino, conference room, gym, resident banking hall and swimming pool.
An audit by Deloitte Advisory Services into the operations of the under-fire NSSA exposed shocking evidence of potential sleaze on the construction of the hotel. Elementary estimates indicate that the cost of each room at the hotel ended up at a shocking US$360 000 after total expenses rose to US$49 million.
In February 2007, NSSA and RTG entered a strategic partnership to construct the four-star hotel and a commercial centre in the border town, but the costs suddenly started rising, first to US$17 million,
then to US$33,4 million and US$44 million before finally hitting US$49 million in 2014.
NSSA controls 40 percent shareholding in RTG.
In the audit report, Deloitte said NSSA had pushed for the implementation of the project regardless of its lack of viability.
The auditor said some figures on the Beitbridge project were not adding up, although the auditors did not examine why the costs rose at a terrific pace at a time when the country had entered a period of
sustained deflation.
The auditors noted that the NSSA board had in October 2014 said it was aware of the exorbitant overheads after the main contractor, CZL, had failed to pay workers and subcontractors, forcing the authority to intervene by directly paying the workers and the subcontractors.
There was no evidence of any punitive action by NSSA on CZL, which failed to honour commitments to subcontractors.
Analysts said the payments made directly to workers and subcontractors could have been easily recouped from CZL.
The property also took seven years to complete, which is abnormal for such a small property. Government has failed to get to the bottom of what transpired, and appears to have taken a back seat amid indications of potential abuse of public funds.
The report said a feasibility study conducted before the project was initiated had clearly spelt out "that the hotel would be loss-making".
This view had forced RTG executives to refuse to manage the hotel, resulting in a fallout with the NSSA executives who were fired by the current board in 2014.
Monday, 20 June 2016
ZIMBABWE: Rainbow Tourism Group's Revenue Grows 13 Percent
Rainbow Tourism Group's revenue for the first four months of 2016 grew 13 percent to $8,6 million in comparison to $7, 6 million recorded in the prior year.
Group chief executive Tendai Madziwanyika told the company's annual general meeting last week that occupancy for the period under review grew to 48 percent from 38 percent recorded during the same period last year while market share increased to 32 percent compared to 27 percent recorded during the prior year.
"Revenue generation programmes will remain the main driving force for growth in the domestic and foreign markets," said Mr Madziwanyika.
While Zimbabwe hotels registered strong performance, Rainbow Hotel Mozambique's revenue was down 46 percent in comparison to the same period in 2015. The Hotel has continuously recorded declining revenues year on year.
"This subdued performance is attributable to the current political instability in Mozambique. We will continue to keep a close eye on the performance of this unit," said Mr Madziwanyika.
Rainbow Beitbridge Hotel was closed on March 31, 2016 following the termination of the lease agreement with the National Social Security Authority.
During the two years of operation, the RBBH recorded unsustainable losses. Market factors characterised by depressed occupancies, low margins and high costs were the major contributing factors in exiting Beitbridge.
The furniture, fittings and equipment which belonged to RTG were removed from the Beitbridge hotel and transferred to Rainbow Towers Hotel, New Ambassador Hotel and Bulawayo Rainbow Hotel allowing for the immediate refreshing and refurbishment of these hotels at no additional cash outlay.
Employees affected by the group's exit from Beitbridge have been offered alternative employment within the group.
Mr Madziwanyika said the cost reduction trend has continued in the 2016 performance. Year to date total operating costs reduced 17 percent compared to the prior year. He said the group will continue to reduce costs through the introduction of new innovative techniques to reduce costs. Over the four months the group reduced costs by $1,3 million while revenues grew by $1 million.
"It is now evident that the company is now benefiting from the cost reduction journey implemented since 2013. Over the period 2013 to 2015 total operating costs reduced by $5 million year on year.
"The operation is now leveraging on innovation to drive service excellence. This process will include establishment of self checking systems through the creation of quality circles and job re-engineering by re-defining roles through job enlargement and job enrichment. This approach will enable more efficient processes throughout the company," said Mr Madzivanyika.
During the past three years the company has reduced the working capital gap by $3,2 million from $12,4 million to $9,2 million.
Operationally the business managed to generate an average EBITDA of $4 million which has been channelled towards refurbishment of the hotels and loan servicing.
Mr Madziwanyika said the company's financial position remains burdened by the balance sheet structure and is expecting to have a lasting solution during the course of the year. He said the company is now focusing on rebuilding the balance sheet to create a sustainable capital structure which will be key to the completion of the turnaround journey.
Group chief executive Tendai Madziwanyika told the company's annual general meeting last week that occupancy for the period under review grew to 48 percent from 38 percent recorded during the same period last year while market share increased to 32 percent compared to 27 percent recorded during the prior year.
"Revenue generation programmes will remain the main driving force for growth in the domestic and foreign markets," said Mr Madziwanyika.
While Zimbabwe hotels registered strong performance, Rainbow Hotel Mozambique's revenue was down 46 percent in comparison to the same period in 2015. The Hotel has continuously recorded declining revenues year on year.
"This subdued performance is attributable to the current political instability in Mozambique. We will continue to keep a close eye on the performance of this unit," said Mr Madziwanyika.
Rainbow Beitbridge Hotel was closed on March 31, 2016 following the termination of the lease agreement with the National Social Security Authority.
During the two years of operation, the RBBH recorded unsustainable losses. Market factors characterised by depressed occupancies, low margins and high costs were the major contributing factors in exiting Beitbridge.
The furniture, fittings and equipment which belonged to RTG were removed from the Beitbridge hotel and transferred to Rainbow Towers Hotel, New Ambassador Hotel and Bulawayo Rainbow Hotel allowing for the immediate refreshing and refurbishment of these hotels at no additional cash outlay.
Employees affected by the group's exit from Beitbridge have been offered alternative employment within the group.
Mr Madziwanyika said the cost reduction trend has continued in the 2016 performance. Year to date total operating costs reduced 17 percent compared to the prior year. He said the group will continue to reduce costs through the introduction of new innovative techniques to reduce costs. Over the four months the group reduced costs by $1,3 million while revenues grew by $1 million.
"It is now evident that the company is now benefiting from the cost reduction journey implemented since 2013. Over the period 2013 to 2015 total operating costs reduced by $5 million year on year.
"The operation is now leveraging on innovation to drive service excellence. This process will include establishment of self checking systems through the creation of quality circles and job re-engineering by re-defining roles through job enlargement and job enrichment. This approach will enable more efficient processes throughout the company," said Mr Madzivanyika.
During the past three years the company has reduced the working capital gap by $3,2 million from $12,4 million to $9,2 million.
Operationally the business managed to generate an average EBITDA of $4 million which has been channelled towards refurbishment of the hotels and loan servicing.
Mr Madziwanyika said the company's financial position remains burdened by the balance sheet structure and is expecting to have a lasting solution during the course of the year. He said the company is now focusing on rebuilding the balance sheet to create a sustainable capital structure which will be key to the completion of the turnaround journey.
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