NATIONAL Social Security Authority (NSSA) has awarded a management contract of the recently completed Beitbridge hotel to Rainbow Tourism Group (RTG).
Report by Victoria Mtomba(NEWSDAY)
The authority also extended a $4,4 million loan to equip Beitbridge Hotel.
NSSA is the majority shareholder in RTG.
NSSA general manager James Matiza said: “We have agreed that RTG will be given a loan by NSSA to equip the hotel and we will lease the hotel to them as well. The money will be paid over three years at an interest rate of 10% per annum.”
He said the pension fund has two options to recover the
$4,4 million loan from RTG, either through payments or rental fees.
This is the second time that NSSA had injected capital in the group after $10 million was extended to the hospitality company last year at 10% interest over a five-year period.
The hotel was constructed to the tune of $32 million and has 140 rooms.
The pension fund holds over 50% shareholding directly and indirectly through investment vehicles in the tourism group.
Meanwhile, RTG yesterday launched the RTG virtual one-stop-shop for customers that allows them to access tourism products and services under one roof.
Speaking at the launch of the one-stop-shop, RTG commercial director Shupai Marware said under the programme the group would leverage on its commercial capabilities market presence and linkages in the local, regional and international markets to generate additional business through driving tour packages.
“Gone are the days when organisations were built on equity and success alone. The way to go is synergies. When RTG works with all the partners, it’s good for the industry and will create convenience and easy access for the customers,” Marware said.
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