Transcript Slide 1
ANNUAL GENERAL MEETING PRESENTATION FRIDAY 27 MARCH 2009 SHINGI MUNYEZA, GROUP CEO GLOBAL OVERVIEW Impact on Operations • • • • • • • • Global Financial Crisis Travel to destinations closer to home favoured Decline in average length of stay Traveller has become budget conscious Travel & Tourism Economy GDP will contract by 3.6% in 2009 Emerging Markets expected to be the engines of tourism growth Focus on the African region becomes essential Short to medium strategies to take cognisance that tourism is one of the sectors targeted for growth overall GLOBAL POLITICAL AGREEMENT • Opportunity to rebrand Zimbabwe more sustainably • Effects and impact of the recently held Tourism Indaba from 25 – 26 MARCH 2009 • The intended opening up of the media will be catalyst for destination preference • Currently Zimbabwe ranks 33rd in the world for attractions but 117th for most preferred destination • The immediate impact of humanitarian aid business travel is already being felt • Multi-lateral financial institutions are showing keen interest in funding tourism IMPACT OF MPS AND FPS ON ZIMBABWE • Tourism has welcomed the liberalisation • The duty –free status for capital expenditure • The Exchange Control liberalisation enabling us to access lines of credit • Our rates are now market determined • Strict cost management is now in place Strategic Goals 1. To grow rooms in Africa under African Sun management from the current 2,500 to 8500 by 2012 2. To become an employer of choice by providing competitive remuneration, an enabling and winning environment driven by personal learning and development 3. To achieve a market capitalization of US$1billion 4. To establish brand leadership where we dominate other brands and become the benchmark for other players 5. To seek a dual listing on a major bourse by 2010 REVIEW OF STRATEGIC GOALS 1. 2. 3. 4. 5. Still on target to increase an additional 1000 rooms outside Zimbabwe We shall be starting construction of three hotels in Zimbabwe in the second half of 2009 The company is pursuing mergers and acquisitions in the region in order to boost its balance before the planned dual listing in three years time HTA HTA in Calabar agreed on by the State Government of Cross River State . Construction begins in three months time. Introduction of the Professional Cookery Diploma Programme Victoria Falls, Elephant Hills Resort for training of Chefs – 39 Chefs on the programme currently. Future plans to extend this facility to non ASL personnel from 2010 The HTA in Equatorial Guinea still under construction. Brand leadership Our first AMBER was opened in Nigeria i n December MyPlace under development in South Africa, Nigeria and Ghana Mulberry under development in Nigeria Financial Overview and Outlook FORECASTED OCCUPANCIES JUNE 2009 FORECASTED OCCUPANCIE S ZIMBABWE GHANA NIGERIA SOUTH AFRICA GROUP ACTUAL QUARTER ENDED JUNE 2008 34% 0% 0% 58% 41% FORECASTED QUATER ENDED JUNE 2009 35% 65% 32% 45% 37% EASTER OCCUPANCY FORECASTED - 45% ADR, REVPAR FOR THE GROUP ZIMBABWE GHANA NIGERIA SOUTH AFRICA 77 176 109 82 DECEMBER 20 2008 REVPAR 151 16 20 JANUARY 2009 ADR 165 115 99 JANUARY 17 2009 REVPAR 93 18 28 FEBRUARY 2009 ADR 76 215 93 92 FEBRUARY 17 2009 REVPAR 121 17 37 DECEMBER 2008 ADR 82