Zvorwadza costs RTG US$800 000

By Ndafadza Madanha
ACTVIST Stan Zvorwadza cost Hospitality concern Rainbow Tourism Group (RTG) a staggering US$800 000 in cancelled bookings when he held a protest at the Rainbow Towers hotel and Conference centre.
Zvorwadza’s antics when he led the protest against the stay of Vice President Report Mphoko at the hotel gained notoriety on social media which led to cancellations of paid bookings.
“The demonstrations by this Zvorwadza had a impact on our business we suffered direct cancellations US$800 000 after the video of the protest went viral on social media. I have never met this Zvorwadza but I would definitely like to meet him,” said RTG chief executive Tendai Madziwanyika.
Overall, the group’s loss before tax widened against prior year to US$3.8m from US$327 000.
Weighing down profitability were the staff retrenchment costs which gobbled up US$600 000 while impairment costs related to discontinued operations came in US$500 000.
Revenue was also 11 percent down from US$26.9m to 24.1m however; foreign revenue rose 20 percent to US$8.1m.
Occupancy was down 2 percent from 56 percent in 2015 to 55 percent last year.
With respect to the US$13million the group owes NSSA, Madziwanyika said shareholders were on the verge of reaching an agreement that will result in the restructuring of the debt.
NSSA instituted legal proceedings against RTG in order to recover the initial US$10m loan plus interest and a judgment in its favor was issued by the high court.
Madziwanyika said the group’s exit from regional operations had put it on a sound footing to consolidate its local operations.
He said the group will continue to refurbish its local hotels and further enhance its e-commerce revenue growth.

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