Hotelier, Rainbow Towers Group, in its financial statement for the full year ended December 2019, says closure of hotels will have a significant impact on the Group’s month of April 2020 revenues.
Rainbow Towers temporarily closed operations after the Zimbabwe Government pronounced a lockdown to contain COVID-19.
RTG chairman Arthur Manase said, “the closure will have a significant impact on the Group’s month of April 2020 revenues which traditionally accounts for 6% of the total annual revenues.”
“The Group is yet to quantify the total impact of Covid 19 pandemic on its operations. The Board is optimistic that the business will significantly recover once the pandemic is under control.”
Rainbow Towers, in the year ended 31 December 2019, witnessed revenues grow by 62% from $279.8 million in 2018 to $454.6 million in 2019.
“Foreign revenues continued to provide a stable base for the company’s income, increasing marginally by 1% from US$11.1 million in 2018 to US$11.2 million in 2019,” Manase says.
“The e-commerce channel, which remains a critical source of foreign revenue growth further increased by 10% to US$2 million from US$1.8 million in 2018.”
“The average daily rate (ADR) grew by 740% from $85 in 2018 to $714 in 2019. “
The hospitality sector has witnessed challenges with companies, with other players slashing workers salaries by half to sustain the operations.
United Nations World Tourism Authority (UNWTO) estimates that in 2020 global international tourist arrivals could decline between 1% to 3%, down from an estimated growth of 3% to 4% forecast in early January 2020 due to COVID-19.
