Chobe to Continue to Expose Domestic Travelers to Tourism

The company has continued preferential rates across its properties


Ecotourism outfit Chobe Holdings Limited remains steadfast in its commitment to exposing domestic tourists to Botswana’s magnificent wildlife resource, the company has said.

According to a Business Update published by Chobe on the Botswana Stock Exchange (BSE) recently, the company has since continued preferential rates across all its properties for this purpose.

Pre-COVID levels
“These rates were in place prior to COVID-19 but the pandemic has highlighted their availability to the market,” says Chobe in the update.

Chobe goes on to note that its revenue and comprehensive income have returned to pre-COVID-19 levels as highlighted in the ecotourism’s half-year results.

“We expect our full-year results to continue to show improvement,” the company says. “Forecasted demand across the Group remains strong into Financial Year 23/24 and beyond.

“These forecasts should crystallise by the end of the peak booking period from January to April. Marketing efforts continue to explore new opportunities both geographically and within specific targeted niches.

“These efforts continue to grow our agent base, improving yield and occupancies throughout the year. Chobe has invested internal resources into our existing Destination Management Company to expand our product offering.”

Chobe also notes that Botswana’s adoption of a crawling band exchange rate mechanism in 2005 coupled with low levels of inflation in developed countries over the past decade has protected Group revenues from local inflationary pressures.

“The effects of global inflation, particularly with respect to food and energy, have been seen across the Group, but these are mitigated by the strengthening of the United States Dollar, in response to Federal Reserve interventions, against the Botswana Pula,” it says.

Strong cash position
Meanwhile, Chobe states that its dividend policy remains to pay a dividend that is at least twice covered by attributable fully taxed earnings subject to the prudent ongoing liquidity requirements of the Group.

“Advanced Travel Receipts should be segmented and not paid as dividends,” says the company.

“The Group’s strong cash position provides us with the opportunity to take advantage of any expansion opportunities that may arise. Capital expenditure has historically been funded by internally generated cash flows.”