Rainbow Tourism Group Optimistic COVID-19 Won't Dampen It's Financial Performance

Hotelier and tourism management company, Rainbow Tourism Group (RTG) is optimistic that the impact of the COVID-19 pandemic and lockdowns during the remaining part of the year will not have a negative impact on its financial performance for the fiscal year ending 31 December 2021.

In a trading update for the third quarter ended 30 September 2021, the Group said with just one and half months left to year-end 2021, its performance is now predictable, and it can be forecast till the end of the year. The Group added:

At present, the financial status of the Group remains healthy, and the impact of the COVID-19 has not created any issues from solvency or liquidity perspective.

RTG’s occupancies for the quarter recorded a marginal growth to 24%, as the level 4 lockdown restrictions in July and August affected the business operations during the period under review.

The Group’s Gateway Stream division’s various channels experienced increased volumes during the quarter compared to all the other quarters during the year with its business volumes growing 55% above the comparative quarter in 2020. RTG said:

Notable performance was recorded under the Gateway Stream rooms (hotel rooms not owned by RTG) which sold rooms equivalent of 30% of the total RTG hotel rooms sold during the third quarter of 2021.

Other channels such as groceries, music and hardware have continued to record significantly increased volumes.

The Group also noted that its Heritage Expeditions Africa’s performance for the quarter was largely affected by the lockdowns.

RTG resolved to continue to capacitate the business to take advantage of the increasing domestic tourism.

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