One of Zimbabwe President Robert Mugabe's two deputies has left a top Harare hotel after two years amid protests by disgruntled taxpayers.
Mr Phelekezela Mphoko reportedly left the Rainbow Towers Hotel at the end of last month after spending 613 days at the presidential suite, arguing that he had no suitable accommodation in Harare.
According to reports, the vice-president blew at least $620,000 in hotel bills after he checked in on December 10, 2014, only to leave last month to stay in a $2 million mansion.
He moved to Harare's leafy Highlands suburb after the government completed renovations and security upgrades.
Mr Mphoko, a former ambassador to South Africa, Botswana and Russia, among other countries, was appointed by President Mugabe in December 2014.
His appointment followed a purge in the ruling Zanu-PF party that claimed the scalps of the then Vice-President Joice Mujuru and several ministers.
Mrs Mujuru and her supporters were accused of plotting to assassinate the 92-year-old leader.
Mr Mphoko, a businessman who partly owns the retail chain Choppies, comes from the second largest city of Bulawayo, about 440km from Harare.
Soon after his appointment, the former diplomat was offered a house at another posh suburb in the capital, but his wife Laurinda rejected it saying it did not fit his new status.
The government then settled on the Highlands property, but Mr Mphoko could not move in immediately as the property required extensive renovations and security upgrades.
However, the vice-president had become a target of Zimbabweans protesting against wasteful government expenditure and corruption.
Some activists, led by Mr Stern Zworwadza, in July stormed the hotel demanding that Mr Mphoko must leave.
Mr Zworwadza on Tuesday appeared before a Harare magistrate facing charges of threatening to burn the Rainbow Towers Hotel if the vice-president did not leave the facility.
The Rainbow Towers Hotel manager, Mr Trythings Mutyandasvika, refused to disclose the amount of money Mr Mphoko spent when asked by Mr Zworwadza's lawyers in court.
The Zimbabwean government is struggling to pay civil servants on time due to a long running economic crisis and close to a million people were in need of food aid after a severe drought.
Finance minister Patrick Chinamasa last week proposed to scrap annual bonuses for civil servants and to reduce the salaries of government workers to save costs, but the proposals were rejected by President Mugabe.
Tourism, Travel, Hospitality, Conservation: News,Stories And Experiences From Allover The World
Showing posts with label Rainbow Towers Hotel. Show all posts
Showing posts with label Rainbow Towers Hotel. Show all posts
Monday, 19 September 2016
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.
Subscribe to:
Posts (Atom)