Chobe feels the impact of COVID 19 hangover
Botswana Stock Exchange (BSE) listed tourism player Chobe Holdings is still reeling from COVID-19 pandemic challenges, the company’s latest business update has revealed. Despite international travel trends having an increased demand for luxury travel experiences, Chobe says the country’s aviation remains challenged.
“The COVID-19 pandemic had a significant impact on Botswana’s air operators with a number of smaller players forced to cease trading and larger players deferring the reintroduction of aircraft due to low passenger volumes,’ Chobe Holdings Chief Executive Officer, John Gibson said in a business update statement issued on the bourse.
Gibson said the company aviation businesses continue to struggle with supply line constraints due to business disruptions caused by the pandemic.
“These disruptions are deep-seated with significant manufacturing constraints being experienced in the industry'.
Gibson highlighted that despite reopening of international borders post the COVID-19 pandemic, there has been a reduction in local travel demand as travellers choose both regional and international alternatives.
“Residents of Botswana have several regional alternatives to our product. Chobe will however continue to encourage local travel through targeted campaigns,” Gibson said.
Meanwhile Chobe says it continues to invest in its core businesses, both through acquisition and continued enhancements of its existing assets.
Some of the company’s developments, the company has embarked on include Savute Safari Lodge rebuild at a budgeted cost of P32million, the purchase of a Cessna 208EX Caravan at a cost of P27.6million, the Shinde
Footsteps rebuild, new Xakanaxa solar plant and Kanana solar enhancements making up the Property Plant and Equipment additions of circa P65million.