Bad publicity affects TA Holdings earnings


Ngoni Chanakira

TA Holdings Ltd says Zimbabwe’s bad publicity continues to haunt the group as far as its foreign subsidiaries are concerned.



, sans-serif”>TA chairman Shingi Mutasa last week told shareholders that Cresta Marakanelo, while chalking up a profit of $260 million, retained only a small portion because of the negative tourist perceptions affecting the Victoria Falls.


The Victoria Falls is a major feeder to the Kasane and Chobe Game Park where a key property, Mowana Safari Lodge is located.


On the banks of the Chobe River lies the luxurious five-star Mowana Safari Lodge. It is 70 km from the Victoria Falls and only five-km from the Chobe Game Park.


Mutasa said turnover at TA from continuing operations however grew by 335% to $51,5 billion, slightly below average inflation.


Turnover includes $12 billion from external operations.

Cresta Zimbabwe and Zimnat Lion together contributed 75% to turnover with the balance coming from foreign insurance operations of the recently acquired Botswana Insurance Company.


“The results of the hotel sector exclude Cresta Marakanelo which, following rationalisation of the shareholding structure, is now being accounted for as an associate in line with international accounting standard guidelines,” Mutasa said.


“A profit of $260 million from Cresta Marakanelo is included in the share of associated profits of $18,2 billion. The Marakanelo business retained only a small profit because of the negative tourist perceptions affecting the Victoria Falls, which is a major feeder to the Kasane and Chobe Game Park where a key property, Mowana Safari Lodge is located.”


Mutasa said Cresta Zimbabwe recorded revenue growth in line with inflation.


He said management successfully re-engineered their business to focus on local business travellers and conference business.


“Occupancies were good and the hotels consistently operated above their fair share of the market,” Mutasa said. “The hotels embarked on a refurbishment programme to cater for the business traveller and in line with international standards, emphasising connectivity.”


The chairman said the business-friendly environment of Cresta Hotels created, as a result of the refurbishment should augur well for further growth in revenue in future.


He said Cresta Royale in Ghana opened its doors to customers in September last year and Cresta Crossroads in Malawi followed later.

© 2018 ALPHA MEDIA HOLDINGS. All rights reserved.
Powered By AMH Digital
Top