Tourism operators still reeling from Ebola effects
Isaac Pinielo | Wednesday May 27, 2015 15:26
This has created dire consequences for major tourism businesses, especially Chobe Holdings Limited and Wilderness Safaris, as reflected in their recently released full year financial results for the year ended 28 February 2015.
Wilderness Safaris stated that for the reporting period, although the effect of Ebola was not evident in the first three quarters of last year, it came later in the group’s booking cycle showing the impact in a lower than expected fourth quarter and a slow start to the new financial year.
“The effects of Ebola were not evident at the beginning of the year as there were few cancellations of existing bookings as was first feared at the onset of the outbreak. However the impact of the Ebola virus together with the new visa requirements that the South African authorities have announced are expected to have a negative effect on the coming financial year,” Wilderness chief financial officer, Ami Azoulay said.
For their part, Chobe Holdings said short to medium term trading conditions may be constrained mainly due to the negative effect on travel plans as a result of the Ebola outbreak in parts of Africa.
“Trading conditions may be constrained mainly due to the negative effect on travel plans as a result of the Ebola outbreak in parts of Africa in 2014 and the strengthening of the US Dollar when compared to the Euro resulting in a substantial increase in the cost of Botswana packages to an already depressed European market,” said Chobe.
The company however revealed that confirmed and provisional bookings for the next reporting period ended 29 February 2016 suggest the group should however achieve satisfactory results in the forthcoming financial year.
Meanwhile, revenue for Wilderness Safaris grew by 12 percent to P945 million. Bednights sold increased by 11 percent driven mainly by Namibia and a greater contribution from our lower end products.
Available bednights have increased by 6 percent from 210,880 to 224,228. The combination of the net currency movement contributed approximately 5 percent of the revenue growth.
The group’s gross margin has decreased by 1 percent to 68 percent as a result of greater contribution by the lower margin Namibian business.
On the other hand, Chobe Holdings reported that during the year under review its bednights sold increased from 45,944 in prior year to 50,868. Camp Xakanaxa, the trading entity of Moremi Safaris, which was acquired on 1st August 2013, contributed 5,017 as compared to 2,264 bednights in the previous year. Revenues however rose by 22 percent due to a significant increase in bednights sold in peak season, an increase in achieved bed rates in US Dollar terms, the weakening of the Pula against the US Dollar and increased capacity following the addition of Camp Xakanaxa.
The group noted that an operating cost increase of 17 percent is considered satisfactory in light of increased volume of business and current inflation levels.