Rainbow Shuts Down Beitbridge Branch Amid Loses

Hotelier, Rainbow Tourism Group (RTG) said yesterday it had shut down its Beitbridge hotel after two years in operation after posting successive losses amounting to $2 million.

The closure of the hotel follows a similar exit from the border town by hotel group, African Sun which shut down its Beitbridge Express Hotel after two decades over profitability concerns.RTG said forecasts showed the hotel would continue to make losses.

"This business decision was reached following much consultation.

Market factors characterised by depressed occupancies, low margins as well as high operating costs were the major contributing factors in exiting Beitbridge," RTG said.

Rainbow Shuts Down Beitbridge Branch Amid Loses

"The latest projections show a declining market demand and rate yield with strong indications that the hotel will continue to make losses into the foreseeable future. The poor performance continued to weigh down overall performance of the group.

Staff who worked at the 136-roomed hotel had been offered employment at some of the group's operations.

RTG runs a number of hotels, which include the five-star Rainbow Towers, formerly Sheraton in Harare, Victoria Falls Rainbow Hotel and A'Zambezi in Victoria Falls, Bulawayo Rainbow, Kadoma Hotel and Conference Centre and another unit in Mozambique.

The closure of the two Beitbridge hotels effectively robs the border town and the tourism sector of a 240 rooms.

At its closure, African Sun's Beitbridge Express Hotel had posted losses amounting to half a million dollars in the past two years.

New Ziana