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RTG turns to renewable energy

RAINBOW Tourism Group (RTG) says it plans to reduce its dependence on the national grid and will be turning to renewable energy to power its facilities across the country.

The hotel group said installation of an alternative energy system at Kadoma Hotel and Conference Centre commenced on March 1, 2022 and is expected to be commissioned during the second quarter of the year.

“The group has commenced rolling out green energy initiatives as part of its sustainability strategy. The first project is rolling out of a 300 KVA solar system at Kadoma Hotel and Conference Centre. The system is adequate to support energy requirements for the entire hotel,” RTG board chairman Authur Manase said in a statement accompanying financials.

RTG’s revenue increased by 17 percent to $2,8 billion during the year ended December 31, 2021 compared to $2,4 billion recorded in prior year.

“It is the ambition of the group to roll out such solar technology solutions across the entire portfolio of our hotels. The project is part of the group’s strategy in driving renewable energy solutions to consistently provide power needs in line with our sustainability drive.”

RTG’s revenue increased by 17 percent to $2,8 billion during the year ended December 31, 2021 compared to $2,4 billion recorded in prior year.
Manase said this revenue performance was achieved despite the group losing an equivalent of five trading months during level four lockdowns.
“The 17 percent revenue growth was positive when read together with the United Nations World Tourism Organisation’s 2021 report that global and Africa tourism increased by four percent and 12 percent, respectively, over the prior period,” Manase said.

The hotel business recorded a 29 percent growth in occupancies to 31 percent during the year and the major source of business was the domestic market, driven by city hotels. RTG closed the year with a gross margin of 72 percent, which was a one percentage point improvement from 71 percent achieved in 2020.

Manase said the hotelier will continue to focus on cost reduction to strengthen gross margins. “In addition to our resilient operating performance, the group maintained a robust capital and liquidity position. The group’s financial gearing ratio was maintained at one percentage point while the current ratio closed at 1,18 from 1,15 in 2020.”
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