Wilderness plans further expansion in Africa
Keikantse Lesemela | Friday May 30, 2014 11:28
Presenting the tourism company’s results for the year ended February 28, 2014 on Tuesday in Gaborone, Wilderness chief executive, Keith Vincent said the group’s target countries are Kenya, Tanzania, Uganda, Congo Brazzaville, Malawi and Seychelles.
The Botswana and JSE listed company currently operates in Botswana, Namibia, Zambia, Zimbabwe and South Africa.
“The market in southern Africa is positive but growth in Botswana is difficult because the market is small. However, we are done with the negotiations and we hope to start implementing these plans by July this year. We just want to settle our business operations in Africa,” said Vincent.
During this period the group opened two new camps including Hoanib Skeleton Coast Camps in Namibia, which are scheduled for opening in August 2014. In capital expenditure P93 million has been allocated to maintain and develop new camps and other assets and this will be funded through existing cash balances and new borrowing facilities.
The group owns and operates a network of 44 luxury safari camps that offer a total of 750 beds in five southern African countries and manages a further nine camps offering 164 beds, in four. Vincent said the focus of the past year has been on consolidation and organic growth and it is expected to continue on the back of the stronger United States market and an improvement in the European market.
“Various opportunities for expansion both within the current geographic footprint of the group and beyond it into other regions of Africa have been identified and expansion plans are being considered,” said Vincent.
Vincent added that there are high levels of demand from North America while the demand for services in Europe is improving steadily. He noted that 70 percent of their customers come from US “but we have already identified avenues in Asia to bring visitors to Botswana”. The group has recorded profit after a 75 percent growth in profits to P48 million for the year ended February 2014. However, the cash available for the group increased by 80 percent to P251 million and nearly 81 million was reinvested in capital expenditure, including camp assets, technology and new camps.