Chobe profits soar on higher tourists arrivals
Pauline Dikuelo | Wednesday May 31, 2017 15:50
The group attributed this to higher tourist arrivals as efforts by the Ministry of Environment, Natural Resources Conservation and Tourism, through Botswana Tourism Organisation (BTO) continues to internationally expose Botswana as a destination of choice.
“These efforts are anticipated to result in more tourists visiting our country in general and the group’s lodges in particular,” said the group’s CEO Jonathan Gibson.
Further he said that the group continues to invest considerable resources to improve its marketing strategies, product offerings and cost controls adding that these initiatives are anticipated to translate into satisfactory results for the forthcoming financial year.
“The group’s strong cash position provides us with the opportunity to take advantage of any expansion opportunities that may arise,” he added.
During the period under review, occupancy increased by four percent when compared to the same period in the prior year.
However according to the group’s CEO this is considered satisfactory in light of continued uncertainty in the world economy, cheaper alternative destinations in the region and reduced capacity as a consequence of continuing lodge renovations and refurbishments.
Gibson said that the group’s other operating income comprises mainly foreign exchange gain saying that Botswana Pula remained fairly stable during the reporting period resulting in only modest foreign exchange gains when compared with the operating gains of the prior year.
“About P1.2 million was received as a final settlement for the disposal of associate Lianshulu Lodge (Pty) Ltd, a Namibian company in which Chobe Holdings Ltd held a 44% interest,” he added.
In addition, the group spent from internally generated cash flows P30.9 million on the purchase of additional equipment and significantly improving existing buildings and equipment.
He said that a further P18.4 million was used to acquire an air maintenance operation in March last year from Maun Aircraft maintenance operation of Air Charter Botswana (Pty) Ltd.
The fair value of assets acquired, which was determined through a valuation, was recorded through North West Air (Pty) Ltd, a 100% subsidiary of Chobe Holdings Ltd.
In December 2013, two of the Group’s subsidiaries submitted tenders for the lease, utilisation and management of a Camp for non-consumptive tourism purposes. After considerable delay both leases were subsequently issued towards the end of the financial year. The initial period for both leases is 15 years from March 2015.