Wilderness revenue up as Ebola fears subside

Wilderness Holdings has recorded increased revenues for the six months ending August on the back of a recovery in international travel to Africa following the end of the Ebola virus.

The group, which operates 45 safari camps and lodges, and 10 scheduled overland safaris in Botswana, Congo, Kenya, Namibia, Seychelles, South Africa, Zambia and Zimbabwe, said its revenue increased by 19% to P642 million this year compared to P539 million in 2015. “The group has delivered pleasing trading results for the first half of the year on the back of a recovery in international travel within Africa following the end of the Ebola virus.  The global terrorist threat and the Zika virus in South America also impacted as they contributed to the market’s perception of southern Africa as a safer and more attractive destination compared with the rest of the world,” Wilderness said.

The increase, according to the group, was driven mainly by the change in sales mix with a 12% increase in contribution by the classic camp category. The group recorded a 66% occupancy rate compared to 64% in 2015. Overall bednight sales increased by 14% to 89,309 from 78,307 in 2015, excluding Governors’ bednight sales, which increased by three percent. Wilderness recently bought a 51% stake in Governors’ camp in Kenya.

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While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...

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