Cresta readies for tourism rebound with P3.5m revamp
Mbongeni Mguni | Friday December 4, 2020 16:39
No matter how hard they tried, tourism players in Kasane, from the bed and breakfasts, to the four-star luxury hotels lining the banks of the Chobe River, were forced at one point or another to abandon their properties this year.
Tourism was not classified as an essential service and while certain tradesmen could still attend to care and maintenance here and there, at some point all the facilities, the glory of Kasane, had to shut down.
Months of uncertainty passed, many companies laid off workers, or cut their salaries. Companies hunkered down from the financial storm, restraining their spending, holding banks at bay and reaching out to government assistance programmes.
Today, workers tell of returning to shake off nests built by baboons on the thatched roofs of chalets where previously tourists paid top dollar to soak in Africa.
In fact, during the quiet months, the wildlife began to take over, re-establishing its dominance over areas usually trodden by human beings. Helped by the healthy rains from earlier this year, the bush also grew thicker and closer, as though attempting to once again take back what tourism has carved out.
The result is that the wildlife is generally more plentiful, the scenery more breathtaking and closer, as Kasane experiences the festive rush of mostly citizen and resident visitors.
Kasane is slowly returning to life, supported by the efforts of Batswana who have faithfully been flocking to the various hotels, lodges and facilities since the lockdowns stopped and interzonal traffic eased.
As the industry took cover from the coronavirus (COVID-19) and focussed on survival, Cresta Marakanelo, the country’s largest leisure and business hotel chain, was making plans for the resumption of activity in the tourism and hospitality sector.
As soon as it was able, the group restarted a P3.5 million effort to revamp its Presidential and Executives suites at its flagship asset, the Cresta Mowana Hotel, literally spending through the pain as the general industry focussed on survival.
“It would have been more expensive if we did not go ahead because we had already committed,” Mokwena Morulane, Cresta managing director says.
“It was also a demonstration of our belief in our product and we wanted to show that something like COVID-19 is not permanent.
“As a leader in the hospitality industry, we needed to demonstrate that we are not retracting, but have confidence by spending money in areas where we felt it was important to do so.
“We were demonstrating our belief in the tourism product in Chobe and the country as a whole, to put together a product that we can all be proud off.”
Cresta spent against the trend in the tourism industry, with a view to the industry’s recovery and future peak seasons. However, the sacrifice was a tough one. As a group, Cresta posted a P43 million pretax loss for the six-month period ended June 30, a huge fall from a pretax profit of P12.2 million over the corresponding period in 2019.
The group cut discretionary expenditure, renegotiated contractual obligations with external parties, suspended all project expenditure and spoke to its lenders.
The 1,000 or so employees were justifiably as nervous as the rest of their counterparts in the industry.
“We sacrificed as a management team to lead the commitment to cash preservation.
“The ExCo team took the first cut in salaries then the next level of management.
“We said we want to protect the workforce.
“Of the 1,000 people employed, 85% of those were protected from any cuts and we are also thankful for government’s support through the wage subsidy.
“As ExCo and management, we went through that for six months and only from October have those cuts been removed because the books improved and we broke even.”
Borders have opened, but international tourists have not yet returned in large numbers, as they usually book for the April to September peak tourism period when dry conditions mean wildlife congregates at the few water holes and is therefore more visible.
Batswana, meanwhile, are largely festive season travellers and in Kasane, activities are hotting up. The Chobe River is a hive of activity with boats of various sizes docking and taking off into the sunset.
The tourism ecosystem, from consumables used at accommodation facilities, to the curious sold, various items rented for safari and boat cruises and the beds sold, is radiating sustainable jobs at the moment.
Everywhere, all over town, the activity is heightening and residents say most top facilities are fully booked into next year.
Morulane is cautiously optimistic. International tourists may not want to go through the hassle of COVID tests and quarantines. Travellers are ‘battle weary’ from the pandemic, nervous about travelling and would rather stay at home. The vaccine news is great, but no one knows when it will reach ‘our’ part of the world.
“However, we will see the return of international travellers our way,” the MD says.
“They still need to come and see what we offer here that is not offered anywhere else.
“We have a sense that when the business returns, it will be in a huge and profitable way for us and that day is imminent.
“Even when that day comes, however, local tourism, going into the future, will be a strong feature for both our business and leisure hotels.”
Kasane, meanwhile, is already in bloom and it shows.