ZIMBABWE’S largest hotel operator, Rainbow Tourism Group (RTG), has reported a sharp rebound in foreign guest arrivals, signalling a broader recovery in the region’s hospitality sector as international travel surpasses pre-pandemic levels.
RTG chief executive Tendai Madziwanyika told the Zimbabwe Independent this week that the group’s foreign business has maintained a strong upward trajectory.
“Our foreign business has been growing at a rate of more than 25% annually. In the first quarter of 2025 foreign arrivals grew by 17% compared to pre-pandemic levels of 2019,” he said.
“Africa was instrumental in driving growth into RTG hotels in the first quarter of 2025, with arrivals growing significantly by 96%.”
Analysts attribute this spike to improved air connectivity, relaxed visa restrictions within the Southern African Development Community (Sadc), and rising disposable incomes in emerging economies such as Nigeria, Kenya, and South Africa.
RTG, which operates the flagship Rainbow Towers Hotel in Harare, along with a growing portfolio of resort and conference properties, is also benefiting from renewed momentum in long-haul source markets.
Arrivals from the United Kingdom — historically a top European contributor to Zimbabwe’s inbound tourism — grew by 13% in the first quarter of 2025.
Visitor numbers from Australia and New Zealand jumped by 33%, driven by targeted destination marketing, increased diaspora travel, and expanding connectivity through Gulf-based carriers.
- Letter from America: Education: Zimbabwe still ahead of the pack
- Depression ‘fears’ for MisRed
- The Fiddler: The body politic
- Ukraine becoming an international centre for illegal arms trade
Keep Reading
“The United Kingdom continues to be a significant contributor of European arrivals. In the first quarter of 2025, RTG experienced a positive growth of 13%, while arrivals from Australia and New Zealand grew by 33%,” Madziwanyika added.
RTG’s performance is drawing attention from regional investors and policymakers, who see tourism as a critical engine for foreign exchange generation, employment, and post-pandemic economic diversification.
Before Covid-19, tourism contributed about 4,1% to Zimbabwe’s GDP. Under the government’s Vision 2030 strategy, the sector has been earmarked as a pillar of future growth.
To support this vision, recent policy reforms have focused on digital visa platforms, liberalisation of airline routes, and fostering public-private partnerships to upgrade tourism infrastructure.
For RTG, these tailwinds — combined with regional travel growth — have translated into improved earnings visibility.
While the group has not yet published its full quarterly financials, the 25% annual growth in foreign business points to resilient demand fundamentals.
The group is also accelerating its digital transformation, with new online booking tools and cross-border mobile payment integration aimed at reducing friction for international guests.
However, the outlook is not without risks. Persistent currency instability, political uncertainty, and unreliable power supply continue to weigh on Zimbabwe’s operating environment.
Globally, the hospitality sector remains exposed to potential disruptions, from climate change and geopolitical tensions affecting long-haul travel.
Despite these challenges, investor interest in African tourism assets has grown sharply, with private equity firms and global hotel chains scouting for acquisition and partnership opportunities in frontier markets.
RTG’s expansion efforts could position it as one of the few publicly-visible African hospitality brands demonstrating post-pandemic growth momentum.
The group recently confirmed it is targeting South Africa’s competitive hotel market, as part of a regional expansion strategy, beginning with a planned entry into Cape Town.
It is actively pursuing acquisitions and partnerships in the city, seeking to diversify its asset base and revenue streams.
This regional pivot marks a strategic shift from RTG’s historically domestic focus and reflects growing investor appetite for high-yield hospitality investments across Southern Africa.
It follows the group’s US$5 million acquisition of the Montclair Resort & Conference Hotel in Nyanga, with further portfolio expansion under consideration.
RTG remains bullish over its fortunes after it posted a positive net working capital position of US$3,4 million in its financial year ended December 31, 2024, owing to a growth in foreign currency revenue.
