The Rainbow Tourism Group’s board of directors have resolved to scale down operations at the loss making Rainbow Beitbridge Hotel with effect from May 31.
It is understood that the 136 room hotel has been incurring loses over the last two years amounting to $2 million forcing the company to close shop in the border town.
The closure of Rainbow Beitbridge Hotel comes five months after African Sun shut down its Beitbridge Express Hotel due to an accrued loss of $507 910 for the past two years. In a statement today, the RTG board of directors said they arrived at the decision to scale down operations following several consultations.
“Operational costs at the hotel were no longer sustainable and since we opened in January 2014, the hotel has incurred losses amounting to more than $2 million,”said the Board of Directors.