Despite a slight dip in occupancies and revenue, Wilderness Holdings reported an 11% increase in profit before tax for the year ended February 29, 2016.
For the period, Wilderness reported a profit before taxation of P120.4 million (R170.3 million), up from the previous year’s P108.7 million (R153.8 million). Revenue dropped 1% to P935.1 million (R1.33 billion) from the previous year’s P944.6 million (R1.34 billion) and occupancies dipped from 63% in the previous year to 58%. Total revenue per available room dropped 4%.
Reporting the results, Wilderness Holdings Financial Director, Ami Azoulay, described the environment as “challenging” listing factors including the hangover from the Ebola outbreak in West Africa during 2014 and the strength of the US dollar against other hard currencies. To a lesser extent, the South African visa regulations and xenophobia were also listed as factors.
Azoulay explained that demand was weak during the first half of the financial year because of the Ebola outbreak and the strength of the US dollar. “The effect of these factors was most notable in the tour series category out of the United States and these bed night sales declined by 23%.” He also pointed out that, excluding the tour series category, bed nights sold were up 1%.
According to Azoulay, the favourable exchange rate and favourable changes in the product mix, cushioned the fall in revenue.
Botswana and South Africa reported an improved segmental profit of 11% and 7%, respectively. Namibia was flat, mainly as greater losses were incurred by the flying business honouring existing bookings made prior to changes to flight arrangements. Zambezi reported a decline in segmental profit largely because of discounted flying to promote occupancy and lower demand from Asia for the road transfer business.
Looking ahead, Azoulay said the group’s investment in the Governors’ Camp Collection in Kenya and Rwanda and the development of a new lodge in Rwanda were in line with its strategy to invest in African tourism markets that offered authentic wildlife and safari experiences.
“We expect to integrate Governors’ Camp operations into our existing business in terms of systems and processes, while retaining their unique brand and offering, discrete from that of Wilderness Safaris,” he said. “The Rwanda greenfield project of Bisate Lodge is continuing, following the receipt of our long-term leases.” He added that the lodge was expected to open in 2017.
“The existing business is reflecting promising forward occupancies, with a rebuilt Ruckomechi Camp that opened in Zimbabwe’s Mana Pools National Park in May, to be followed by a brand new camp, Little Ruckomechi, in August,” Azoulay said. “We await the renewal of the leases in Botswana to commence the rebuilding of Mombo Camp.”
This story has been updated since publication. The initiatl report incorrectly stated that Wilderness reported a profit of P120.4 million (R170.3 million). This reffers to profit before taxation. Tourism Update apologies for the error.
