WINDHOEK - State-owned tourism and hospitality service company Namibia Wildlife Resorts (NWR) reported revenues of N$359 million from 2018, a decline of one percent from one year ago,
Minister of Environment and Tourism Pohamba Shifeta revealed this when he reappointed the parastatal’s board yesterday for a period of three years from 15 June 2019 to 14 June 2022.
All board members were retained, with Leonard Iipumbu to continue as chairperson. He is to be deputised by Janet Wilson-Moore, while board members Ru die Putter, Carol Williams, Bernd Schneider, Advocate Eva Shifotoka and Elizabeth Petersen were also retained.
Pohamba said in 2017, NWR’s revenue had increased by seven percent from N$339 million to N$361 million but in 2018, the revenue decreased slightly by one percent - to N$ 359million.
He said the cost of sales is an area that has seen a significant reduction, contributing to overall reduction in expenses.
“Cost of sales reduced from a 60 percent in 2016, to a 50 percent in 2017, and the industry benchmark of 35 percent in 2018,” he said.
He added that the earnings before interest, tax and depreciation was a loss in 2016 of N$30 million, which turned to an operational profit of N$15 million in 2017, and a further improvement resulting in an operational profit of N$23 million in 2018.
These improvements, he said contributed to the fact that no government subsidy was given to NWR for the past three years, since the year 2015.
However, he said after accounting for depreciation and interest, the bottom line profit turned into a loss.
Even so, Shifeta said that a loss of N$88million in 2016, reduced by 55 percent to a loss of N$39 million, and that reduction was again repeated in 2018, reducing the loss by a further 43 percent in 2018, to N$22million.
“This is a commendable effort by the board,” he said.
Furthermore, Shifeta said since 2016 when the current board took over the company, NWR has been producing good results.
“The road ahead is exciting, but full of challenges,” he said.
He said the NWR Act made provision for the parastatal to run the tourism resorts to generate income and revenue to the state.
“The most important task of the Board of Directors therefore is to steer the company’s strategy in a manner that will ensure the meeting of the economic targets set out for the company in the long term and generate value for the shareholders so that the expectations of the stakeholders can also be met,” he said.
“We have decided to retain all because we are confident that you will be able to make this company competitive. You are, without doubt, knowledgeable, experienced, and possess wisdom and information, to make this company to become a formidable and dominant player in tourism,” he told the board members.
“I have confidence that you will continue to support the NWR management to enhance its leadership position and to impact meaningfully on the development of the tourism industry,” he added.
NWR managing director Zelna Hengari is currently suspended and her post advertised. She was informed early this year of the board’s intention not to retain her services after her current five-year contract that expires this month.
2019-06-11 08:59:30 | 1 years ago