Rainbow Tourism Group (RTG) has long been central to Zimbabwe’s tourism and hospitality landscape. Founded in 1984 as the Zimbabwe Tourist Development Corporation (ZTDC), the company initially managed state-owned hotels before transforming into a listed private entity in 1999.
Over four decades, RTG has grown from a handful of properties into a diversified group spanning owned and leased hotels, a tour operations arm, and a digital commerce platform. Its evolution highlights a model blending traditional hospitality with technology and strategic diversification.
The flagship Rainbow Towers Hotel and Conference Centre has hosted international conferences and dignitaries, cementing RTG’s role in city-based hospitality. Expansion into Victoria Falls provided access to international leisure markets, while the 2024 acquisition of Montclair Resort and Conference signalled intent to grow into the Eastern Highlands. At the same time, investments in the Gateway Stream super-app show a pivot toward e-commerce as an additional growth driver.
FY24: Year of recovery
The 2024 financial year underscored RTG’s resilience. Revenues rose 2% to US$44,4 million, with occupancy climbing to 54%, surpassing pre-Covid levels. Foreign currency revenues grew 15% to US$19 million, making up 43% of the total revenues. EBITDA surged 52% to US$9,7 million, reflecting effective cost-saving measures.
RTG’s resort hotels were standout performers, buoyed by a 50% increase in foreign arrivals. Average occupancy in resorts rose to 65%, highlighting the international tourism rebound. The Group’s Heritage Expeditions Africa (HExA) subsidiary delivered US$1,9 million in revenue, reinforcing the importance of diversifying into adventure and cultural tourism. On shareholder returns, RTG declared a total dividend of US$2,5 million, its strongest payout since relisting milestones in the 2000s.
Major capital investments supported this performance. Over US$26 million was invested in refurbishments in the past five years, including US$5,2 million dedicated to the Rainbow Towers Hotel in 2024. These upgrades positioned RTG to attract high-value international clients, evident in the 15% growth in forex revenues.
HY25: Momentum continues
- Steward Bank operating profit up 73%
- AAT adds Vic Falls Spa in post-pandemic strategy
- Feature: Insects, solution to Africa’s malnutrition and food problems
- RTG revenue shoots up 17% amid headwinds
Keep Reading
RTG carried this momentum into the first half of 2025, reporting 15% revenue growth to US$20,8 million. Conferencing revenue rose 24%, while foreign currency revenues grew 23% to US$9,8 million, accounting for 47% of the total revenues.
Segmental performance tells a nuanced story. City hotels, including Rainbow Towers, Kadoma, and Bulawayo Rainbow, achieved US$16 million in revenues, up 12% on strong conference demand. In Victoria Falls, refurbishment disruptions held back growth, but occupancy still rose to 63%, generating US$3,2 million. Upgraded rooms are expected to lift performance in the second half.
Montclair contributed US$0,6 million in revenues following its March acquisition, while also creating synergies through horticultural projects that lower food costs. HExA contributed 4% of revenues and is set to benefit from the planned Batoka Safaris acquisition.
EBITDA grew 74% to US$2,4 million, supported by a gross margin of 68%, up from 67% in FY24. Profit after tax fell 31% to US$1 million, reflecting higher finance costs linked to Montclair and currency pressures. Still, RTG declared an interim dividend of US$1,1 million, split equally between USD and ZiG, underscoring commitment to shareholder returns.
Tourism’s rising strength
RTG’s growth is bolstered by Zimbabwe’s thriving tourism sector, which earned US$1,2 billion from 1,6 million international visitors in 2024 and attracted US$190,5 million in investment. The government has set an ambitious target to build the sector into a US$10 billion industry by 2030 under National Development Strategy 2, after tourism contributed between 12%-15% of GDP in 2024 surpassing agriculture and mining.
The 2025 Sanganai/Hlanganani/Kumbanayi Expo showcased the sector’s dynamism, drawing 843 exhibitors from 23 countries and driving infrastructure upgrades that enhance RTG’s Montclair Resort accessibility. Positive international feedback on safety and hospitality further supports RTG’s expansion in Victoria Falls, the Eastern Highlands, and adventure tourism via HExA.
Business model shifts
RTG’s revenue mix reflects important shifts. Foreign currency revenues now contribute nearly half of the total, compared to 39% in 2023. This underscores the success of international marketing and the appeal of upgraded resorts. Meanwhile, conferencing remains a dependable driver, growing 24% in HY25 and anchoring the city hotels segment.
The acquisition of Montclair expands RTG’s leisure footprint beyond Victoria Falls, while regional ambitions are also advancing.
A Cape Town property is being redeveloped into a branded hotel, marking RTG’s entry into South Africa’s competitive tourism market. The planned Batoka Safaris acquisition will strengthen logistics and broaden HExA’s offerings. Collectively, these moves reflect a strategy of leveraging Zimbabwe’s tourism recovery while expanding regionally.
FY25 outlook, conclusion
RTG is poised for a stronger second half of 2025, supported by refurbished hotels, sustained international arrivals, and full-year contributions from Montclair and potential Batoka Safaris integration. While risks such as inflation, interest rates, and forex volatility remain, cost efficiencies and balance sheet discipline provide resilience. Revenues are expected to surpass FY24’s US$44,4 million, potentially reaching US$46–48 million.
Overall, RTG’s diversified model, spanning city hotels, resorts, conferencing, e-commerce, and tours continues to deliver growth. Rising forex revenues, recovery in conferencing, and strategic acquisitions position the Group for long-term value creation, with supportive sector dynamics and prudent management offsetting macroeconomic challenges.
- Taimo is an investment analyst with a talent for writing about equities and addressing topical issues in local capital markets. He holds a First Class Degree in Finance and Banking from the University of Zimbabwe. He is an active member of the Investment Professionals of Zimbabwe community, pursuing the Chartered Financial Analyst charter designation.
