Connect with us
Advertisement

Favourable exchange rates boost Chobe H1 profits

Predominantly Botswana based tourism outfit Chobe Holdings, listed on Botswana Stock Exchange registered impressive sets of results for its six month trading period ended August 31st 2018, the company’s H1 unaudited financials reveals.

During the period under review Chobe Holdings Limited realized an increase in bed nights sold of 11 percent compared to the same period in the prior year. J M Gibson Chief Executive officer of Chobe Holdings says the bed night figures depicts satisfactory performance which was bolstered by increased capacity occasioned by completion of improvement at Chobe Game Lodge, the company‘s flagship hospitality outfit .

Gibson explains in the company’s statement released this week that a 13 percent hike in revenue realised is also attributable to increase in achieved bed night in US Dollar terms as well as favourable exchange rates. In the previous period of 2017 H1 Chobe battled unfavourable exchange rates which shrunk their Dollar terms bed night figures. An operating cost increase of 16 percent is considered satisfactory in light of both the volume of business and current inflation levels.

 The Group spent P23.4 million, financed from internally generate cash flows, on improving existing equipment and buildings, as well as the purchase of additional equipment. A further P15.0 million, financed through a Wesbank loan, was used to purchase an aircraft
Chobe Executives observes that the Southern African tourism industry which the company operates in though its flagship camps and lodges in Botswana, air services in Namibia as well as travel agency in South African remains promising “this trend is anticipated to continue in the medium-term, continue to ensure that the Group’s camps and lodges remain well positioned in terms of both infrastructure and service excellence in order     to take advantage    of these positive market conditions”.

 According to Gibson the aforementioned growth trend in tourist arrivals presents an opportunity for new entrants in the industry.  “This competition is welcomed as it will ultimately drive us to improve our already superior service standards”.However Chobe Holdings suggests that tourism industry policy makers and regulators must tighten their requirements and upgrade their standards to avoid downgrading visitor experience through overcrowded sightings and by placing too much pressure on the sensitive environment on which for example Botswana’s wildlife resource is based.

Gibson say Botswana Government’s decision to simplify visa requirements, where convoluted processes were previously required, is a welcome initiative which has the potential to increase in bound tourist numbers especially from the Far east. He however, underscores that both  Botswana and Namibia’s belated decision to replicate South Africa’s stringent travel restrictions for minors is currently a disincentive to potential travelers, especially so now that South Africa has abandoned these requirements in order to boost its own tourist industry.

“For us however  the Group’s strong cash position provides us with the opportunity take advantage of any expansion opportunities that may arise”  he said adding that his company as one of the major Tourism services outfits in the region remain keen to  strategies  that will boost the company’s performance and expands its footprint.

Chobe Holdings Limited owns and operates, through its wholly owned subsidiaries, eleven eco-tourism lodges and camps on leased land in Northern Botswana and the Caprivi Strip in Namibia with a combined capacity of 314 beds under the brands Desert & Delta Safaris and Ker & Downey Botswana.

Safari Air, a wholly owned air charter operator, provides air transport services to the group's camps and lodges. Desert and Delta Safaris (SA) (Pty) Ltd, another wholly owned subsidiary operating in South Africa, provides reservation services to the group. The company got incorporated in Botswana I 1983 and listed on the Botswana Stock Exchange in September 29th 1999.

Continue Reading

Business

China’s GDP expands 3% in 2022 despite various pressures

2nd February 2023
China’s Gross Domestic Product (GDP) expanded by 3% year-on-year to 121.02 trillion yuan ($17.93 trillion) in 2022 despite being mired in various growth pressures, according to data from the National Bureau Statistics.

The annual growth rate beat a median economist forecast of 2.8% as polled by Reuters. The country’s fourth-quarter GDP growth of 2.9% also surpassed expectations for a 1.8% increase.

In 2022, the Chinese economy encountered more difficulties and challenges than was expected amid a complex domestic and international situation. However, NBS said economic growth stabilized after various measures were taken to shore up growth.

Industrial output rose 3.6% in 2022 over the previous year, while retail sales slightly shrank by 0.2% data show that fixed-asset investment increased 5.1% over 2021, with a 9.1% hike in manufacturing investment but a 10% fall in property investment.

China created 12.06 million new jobs in urban regions throughout the year, surpassing its annual target of 11 million, and officials have stressed the importance of continuing an employment-first policy in 2023.

Meanwhile, China tourism market is a step closer to robust recovery. Tourism operators are in high spirits because the market saw a good chance of a robust recovery during the Spring Festival holiday amid relaxed COVID-19 travel policies.

On January 27, the last day of the seven-day break, the Ministry of Culture and Tourism published an encouraging performance report of the tourism market. It said that domestic destinations and attractions received 308 million visits, up 23.1% year-on-year. The number is roughly 88.6% of that in 2019, they year before the pandemic hit.

According to the report, tourism-related revenue generated during the seven-day period was about 375.8 billion yuan ($55.41 billion), a year-on-year rise of 30%. The revenue was about 73% of that in 2019, the Ministry said.

Continue Reading

Business

Jewellery manufacturing plant to create over 100 jobs

30th January 2023

The state of the art jewellery manufacturing plant that has been set up by international diamond and cutting company, KGK Diamonds Botswana will create over 100 jobs, of which 89 percent will be localized.

This content is locked

Login To Unlock The Content!

Continue Reading

Business

Investors inject capital into Tsodilo Resources Company

25th January 2023

Local diamond and metal exploration company Tsodilo Resources Limited has negotiated a non-brokered private placement of 2,200, 914 units of the company at a price per unit of 0.20 US Dollars, which will provide gross proceeds to the company in the amount of C$440, 188. 20.

According to a statement from the group, proceeds from the private placement will be used for the betterment of the Xaudum iron formation project in Botswana and general corporate purposes.

The statement says every unit of the company will consist of a common share in the capital of the company and one Common Share purchase warrant of the company.

Each warrant will enable a holder to make a single purchase for the period of 24 months at an amount of $0.20. As per regularity requirements, the group indicates that the common shares and warrants will be subject to a four month plus a day hold period from date of closure.

Tsodilo is exempt from the formal valuation and minority shareholder approval requirements. This is for the reason that the fair market value of the private placement, insofar as it involves the director, is not more than 25% of the company’s market capitalization.

Tsodilo Resources Limited is an international diamond and metals exploration company engaged in the search for economic diamond and metal deposits at its Bosoto Limited and Gcwihaba Resources projects in Botswana.  The company has a 100% stake in Bosoto which holds the BK16 kimberlite project in the Orapa Kimberlite Field (OKF) in Botswana.

Continue Reading