Monday, June 24, 2024

Wilderness predicts low yields while Chobe smiles

Whilst highly rated Wilderness Holdings is expecting to record lower profits for the year ended February 28, 2017, its competitor, Chobe Holdings Limited says its results for the same period are likely to be significantly higher than those achieved in the corresponding period in the prior year. 

Both companies which participate in the tourism sector are listed on the domestic board of the Botswana Stock Exchange (BSE). 

Whilst a communiqu├® from Wilderness Holdings released to the capital markets this past week could not shed much light, the company board stated in the same release that the anticipated decline could be linked to the unrealised losses resulting from translation of the Company’s foreign currency position, notwithstanding an increase in segmental profit. 

“Shareholders are accordingly advised to exercise caution when dealing in the Company’s securities until the results for the year ended February 28, 2017 are announced” reads part of the Wilderness Holdings trading statement.

Wilderness Holdings began operating 30 years ago in Botswana and has focused its operations on safaris in very wild, pristine and remote parks. Operations began initially within Botswana and then spread into the rest of southern Africa and the Seychelles. 

Over time, the business has evolved into a specialist luxury safari operation with 70 different safari camps and lodges in seven SADC countries, hosting in excess of 25 000 guests per annum. 

Chobe Holdings, on the other side, owns and operates 10 eco-tourism lodges and camps on leased land in northern Botswana and the Caprivi Strip in Namibia with a combined capacity of 290 beds under the brands Desert & Delta Safaris and Ker & Downey Botswana. 

Safari Air, a wholly Botswana owned air charter operator, provides air transport services to the group’s camps and lodges.

The tourism outfit ended the year 2016 with impressive financials with its revenue up by 33 percent and profits before tax increased by 45 percent. 

Meanwhile, the two companies are yet to make commentary regarding a recent decision by the government to introduce a new levy targeted at tourists. 

Last week the government announced that it would start rolling out the Tourism Development Levy (TDL) on June 1, 2017 which has been approved by Cabinet. 

The levy paid will be US$30 (P300) for all non-citizens or non-residents of the SADC region, and will be charged at all points of entry (airports and border gates). 


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