African Sun Limited, the leading hotel investment company in Zimbabwe, recorded accelerated growth in both the top and bottom line, with full year revenue closing at USD 68.5 million, a 32% growth from the USD 51.82 million reported in 2017.
Though the second half of the year 2018 was characterized by multiple economic constraints such as input price increases and hard currency shortages to mention a few, the growth in revenues and subsequent profits was augmented by an increase in occupancy levels from 52% in 2017 to 59% in 2018 for the group.
This was driven by a positive response from all source markets, where growth in all market segments was 7% and above. The Victoria Falls area contributed significantly to international traffic, as the destination saw a number of regional and international airlines increase frequencies and or grow capacity in response to the increased demand in the destination. Growth was also spurred by a 17% growth in ADR from USD 93 million recorded in 2017 to USD 109 million in 2018 as the hotels continued to yield and manage input costs simultaneously.
Profits realized in 2018 are going towards adding value for all the stakeholders through product improvement projects across board. The Holiday Inn Hotels are undergoing restaurant makeovers and gym refurbishments, which will come with a modern flair, in line with international standards which guests are accustomed to. The Caribbea Bay Resort and Great Zimbabwe Hotel are both in the process of constructing new campsites for nature lovers so they can enjoy the outdoors.
A programme of rooms refurbishment is well underway to enhance luxury and comfort for valued guests. An outdoor new conference center which also doubles as a Superb Safari Wedding Venue in true African Wilderness was completed at Hwange Safari Lodge whilst The Monomotapa Hotel will be able to give guests the power to manage and be in charge of their in-room climate control, as new air conditioning units are installed. New beds have been procured for all the hotels inviting guests to restful night’s sleep as they take breaks from each day’s activities, be it business or leisure.
Whilst creating value for all stakeholders; the underprivileged and vulnerable members of communities as well as the environment have also been part of the African Sun Story in 2018. With assistance given to St Catherine’s School in Harare, The Victoria Falls Anti-Poaching unit, the Maternity Ward at Sakubva Clinic in Mutare and animal welfare support through the Kariba Wild life Trust to mention a few; this is in realization of the responsibility that belies the Group as a key industry player in tourism.
The hotel will continue at an even bigger scale in 2019 as more compelling needs became apparent in society, especially in the light of the Cyclone Idai Devastation where donations from the Group in excess of $80 000 were extended to the victims. The staff also gave from their personal resources items ranging from clothing to utensils in response to the needs in Chimanimani.
The first two months of 2019 were weak compared to the same period last year with regards to occupancy as January was affected by the unrest experienced in the month. This resulted in cancellations of bookings, mainly from local companies and in some cases postponement without concrete future dates. Whilst the February Monetary Policy Statement pronouncements slowed down domestic economic activity as companies and individuals required time to adjust to the new macro situation.
This had a combined effect of shrinking the revenues realized in those two months compared to the same period in 2018. Going forward however, the African Sun anticipate business to improve supported by the positive changes and sentiments brought about by the Economic Stabilisation Programme (“ESP”). The Victoria Falls area will continue to thrive from the international traffic that is expected to grow by between 2 and 3% in line with global tourism trends, whist the Bulawayo and Masvingo areas are set to benefit from a renewed interest in round-Zimbabwe-tours that has seen inclusion of these areas in international itineraries.
The African Sun Limited, is committed to continuously delivering the best service at the best value. Therefore whether traveling for business or leisure, let the hotel make your stay as comfortable and memorable as can be.
