AfricaTravel & VacationsZimbabwe

Zim’s re-opening of tourism sector yields positive results

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The reopening of the tourism sector by the Zimbabwe Government has already started yielding positive results, Dawn Properties has said.

Businesses across the world have been affected by the slow-down in economic activity due to the Covid-19 induced lockdowns.

“As at 1 October 2020, all the African Sun run hotels are back in operation and occupancies are steadily increasing. In the short to medium term, tourism recovery in Zimbabwe is anticipated to be driven by domestic tourism,” Dawn Properties said in a trading update.

The group’s hotel revenue for the nine months ended 30 September 2020, at ZWL65.3 million, was 54% lower than the revenue achieved during the same period last year. This was attributed to depressed occupancies as a result of strict lockdowns imposed by the government during the second quarter in response to the Covid-19 pandemic.

Year to date average occupancies as at 30 September 2020 stood at 16% compared to 41% recorded in prior year.

“The Group witnessed an increase in hotel occupancies from the previous quarter as three additional hotels (Monomotapa Hotel, Troutbeck Hotel and Carribea Bay Hotel) were reopened in July and August 2020.”

Average occupancy for all the hotels for Q3 2020 was 13% compared with a 42% occupancy achieved during the same period last year. The two resort hotels namely Hwange Safari Lodge and Elephant Hills Hotel were only reopened in October 2020.

“The operating environment during Q3 2020 under review was however more stable compared with the first half of the financial year mainly as a result of the introduction of the foreign currency exchange auction system and relaxation of lockdowns,” it said.

In Q3 2020, property consultancy revenue declined 10% to ZWL43.7 million owing to subdued business during the lockdown period as well as the loss of a significant client, effective 31 March 2020.

As at 30 September 2020, the group had sold eight stands. But, twelve additional stand sales were completed bringing the total number of stands sold to date to twenty.

Dawn’s administrative expenses to revenue ratio for the quarter to September was 56% compared with 50% for the previous corresponding period reflecting the decline in revenue from prior year. Property expenses to revenue ratio remained flat at 6%.

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