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RTG’s e-commerce shift bearing fruit

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18 MAY, 2021

Tawanda Musarurwa

The move by hospitality group Rainbow Tourism Group (RTG) to pivot towards digital businesses is beginning to bear fruit, with the Gateway Stream continuing to be a key revenue stream amid the pandemic disruptions.

The Gateway Stream web and mobile application is a global diversified and unified online business ecosystem that delivers perpetual, passive and active income through the ownership of markets.

RTG launched the application in 2018, long before the Covid-19 pandemic.

The Covid-19 pandemic has had a devastating impact on travel and the hospitality businesses across the globe, and Zimbabwe has been no exception.

In its trading update to March 31, 2021, the group said although business was down due to the pandemic, the platform was the main revenue driver during the period under review.

“The group’s mobile and web application the Gateway Stream, which was activated in May 2020 continued to gain momentum and has become a source of replacement business, as well as a driver for revenue growth,” said company secretary Tapiwa Mari.

“The growth trajectory in Gateway Stream is being led by groceries, hardware and accommodation, while food and drink (Gateway Eats), Events and Insurance channels have started recording business activities and are showing high potential going into the future.”

During the period under review, the group’s inflation adjusted revenues closed at $198 million, down from $368 million recorded over the same period last year, a development management attributed to “a consequence of the reduction in occupancy.”

RTG’s reported that first quarter occupancies closed at 12 percent.

“This performance is attributed to the increased business activity in the month of March as there was no significant business activity in the first two months of 2021.

“The comparative 2020 occupancies were 33 percent representing full activity during that period except for Rainbow Towers Hotel & Conference Centre which was closed for a planned refurbishment” said the group.

“It is pleasing to note that activities in city hotels have significantly increased mainly driven by conferencing. The Victoria Falls area hotels remain affected by the impact of Covid-19 on world travel,” said RTG.

According to the United Nations World Tourism Organisation (UNWTO) 2020 report, Africa has been the most affected in terms of international tourism because it is a long-haul destination.

Management however said it is positive that airlines are now beginning to resuscitate regional routes, which will have a positive impact on regional tourism.

The group’s tour operations arm Heritage Expeditions Africa activities were also affected by the lockdown.

“We anticipate the volumes to grow in line with increasing domestic business activities,” said Mari.

With players in the tourism sector still grappling with the long-term effects of the pandemic, RTG has moved to vaccinate most of its employees.

“The group responded to the Government’s free vaccination program and has recorded an impressive 70 percent vaccination of its staff.

“The vaccination efforts will likely spur confidence in the tourism industry,” said the group.

It added: “The on-going vaccination rollout across the globe is expected to improve tourism activities. The group is upbeat about the prospects of domestic tourism as driven by the recovery of some key sectors of the economy.”

Going forward, RTG management is seeking to further leverage on the e-commerce platform, through “the full activation of all the 12 Gateway Stream revenue channels.”

“These 12 revenue channels give the group the opportunity to derive revenues from various and diversified segments of the economy,” said management.

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Wealth Management

Number of African millionaires to rise 42% over next decade, says report’

Africa as a continent has the both the youngest and fastest growing populations, which could mean endless possibilities for investors

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THE NUMBER of African millionaires is set to rise a staggering 42% in the next ten years, according to a new report,

The Africa Wealth Report which is the definitive guide of Africa’s wealth and luxury sector and is published by Henley & Partners – the global leader in residence and citizenship by investment.

This year’s report – written in partnership with New World Wealth – say Africa is set to see a substantial increase in Africa’s High-Net Worth Individual (HNWI) population over the next decade.

The report reads: “The Africa Wealth Report 2023 reveals that the growth in High-Net-Worth Individuals on the continent is expected to be 42% over the next 10 years.”

Natural and  eco-friendly businesses is a trend which is set to be popular with HNWIs and is set to influence a boom in the eco-tourism market.

However, the report noted: “Total high-net-worth individual numbers on the continent have dropped by 12% since 2012, as this report reveals, with poor growth in the three largest markets: South Africa, Egypt, and Nigeria.

“But the future looks brighter, as New World Wealth predicts Africa’s millionaire population will rise by 42% over the next decade, reaching 195,000 by 2032.”

Mauritius projected to have a growth rate of 75% in the next ten years.

But also, several other African countries are predicted to see a growth of over 60% for HNWI’s.

These countries are Rwanda, Zambia, Democratic Republic of Congo, the Seychelles and Morocco, according to the report.

Africa as a continent has the both the youngest and fastest growing populations, which could mean endless possibilities for investors.

The new report also reveals that “the ‘Big 5’ wealth markets in Africa — South Africa, Egypt, Nigeria, Kenya, and Morocco — together account for a significant 56% of Africa’s high-net-worth individuals and over 90% of the continent’s billionaires.”

But with countries like Rwanda are developing fast, which may mean a huge leap in the country’s wealth.

The report states: “Rwanda was the top performing market in Africa during the period, with millionaire growth of 72%, followed by Mauritius, the Seychelles, Uganda, and the Democratic Republic of the Congo.

“Morocco and Kenya’s high-net-worth individual populations also grew solidly.

“Ethiopia and Ghana, whose millionaire populations had been growing rapidly until 2019, have struggled over the past few years, which has pulled back their 10-year growth rates.

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Business

Financing Africa’s recovery.

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Financing Africa’s recovery: Is there an unfair risk premium on lending to the continent?

France 24’s François Picard leads a discussion in which Lionel Zinsou, former Prime Minister of Benin, and Marin Ferry, Asst. Prof. at the Université Gustave Eiffel, articulate their views on the treatment of African economies on the international bond markets and by credit rating agencies. Is there an anti-African stigma on the financial markets?

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Business

AFC – Changing the Narrative on Africa

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Africa Finance Corporation – Africa is on a major growth trajectory and the future belongs to Africa .

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