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ANNUAL GENERAL MEETING PRESENTATION
FRIDAY 27 MARCH 2009
SHINGI MUNYEZA, GROUP CEO
GLOBAL OVERVIEW
Impact on Operations
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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.
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3.
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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