Rainbow Tourism Group pulls out of Mozambique because of civil conflict

The operation posted a loss of $1.6 million in the previous financial year, he added.

The Rainbow Mozambique Hotel was the last of the group’s management contracts outside Zambia.

RTG has recently pulled out of two units in Zambia, while it pulled out of the Democratic Republic of Congo about seven years ago.

“We are not looking at regional at the moment. We want to consolidate our domestic operations first and when we are strong we can now look at expanding into the region,” said Madziwanyika.

He spoke ahead of the publication of the group’s half year results for the period ended June 30, 2016.

The results are due for publication today.

During the review period, RTG reported a four percent rise in revenue to $11.8 million, from $11.2 million during the prior comparative period in 2015.

As a result of the discontinued operations, RTG posted a loss of $2.9 million for the half year under review, compare to a loss of $1.9 million during the prior comparable period.

Occupancy grew by 15 percentage points to 54 percent during the review period, from 47 percent at the same time last year.

Resorts improved occupancy levels by 10 percentage points to 56 percent, from 46 percent at the same time last year.

In May, RTG made the strongest indication of big changes to its Mozambican operations following losses.

Madziwanyika told a recent annual general meeting that the group will be taking “robust” decisions of the operation, although he did not say what action would be taken.- The Source

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