By Wallace Mawire
Leading Hospitality firm, Rainbow Tourism Group recorded robust growth in the FY25, with revenue rising 13% to US$50.3 million, up from US$44.4 million recorded in the FY24, driven by innovative strategies and the sustained strength of the Group’s diversified hospitality and tour operations portfolio.
In a statement accompanying the group’s financial results, RTG board chairperson Douglas Hoto said the growth was achieved despite ongoing economic challenges.
“The Group delivered a robust performance during the year under review, posting double‑digit revenue growth driven by innovation and the continued strength of its diversified hospitality portfolio,” he said.
“This achievement was recorded despite persistent market liquidity challenges and a reduction in NGO‑related business following the withdrawal of donor funding by key international partners. Revenue increased by 13% to US$50.3 million (2024: US$44.4 million), supported by a significant 28% growth in foreign‑currency earnings.
Mr. Hoto said that the Group’s total assets increased by 28% to US$82.7 million, compared to US$64.5 million in the prior year.
“The Group’s financial position remains strong, evidenced by a 28% increase in total assets to US$82.7 million, up from US$64.5 million in the prior year,” he said.
“This growth was driven primarily by the strategic acquisition of assets, namely Montclair Hotel and Casino in Nyanga, MSK House in Cape Town, South Africa, and Batoka Safaris, a destination management entity based in Victoria Falls.”
The Group recorded an occupancy rate of 57% during the period under review, a 6% increase from 54% recorded the prior year.
“This increase is despite the temporary displacement of approximately 3,200 room nights due to planned refurbishments across key properties. Average Daily Rate (ADR) strengthened to US$109 from US$102, while Revenue per Available Room (RevPAR) increased 13% to US$62, reflecting improved demand across the Group’s portfolio,” he said.
Mr Hoto also noted that foreign currency revenue increased by 28% to US$24.1 million from US$18.9 million recorded in 2024.
“Foreign‑currency revenue strengthened significantly, increasing by 28% to US$24.1 million (2024: US$18.9 million), supported by continued growth in international tourist arrivals in Victoria Falls and an increase in regional conferences.”
“Montclair Resort and Conference Hotel was incorporated into operations effective 1 March 2025. Batoka Safaris a tour operating entity was acquired and consolidated into the Groups revenue from 1 June 2025. Both entities contributed 8% of the total Group revenues.”
Mr Hoto said EBITDA closed at US$7.9 million compared to US$9.7 million in 2024.
“During the year, the Group incurred a new cost line associated with its strategic acquisition activities. These costs amounted to US$1.6 million and, while essential for supporting long‑term growth, contributed to a temporary moderation in earnings performance,” he said.
“As a result, EBITDA closed at US$7.9 million compared to US$9.7 million in 2024. Despite this short‑term impact, the acquired assets are expected to enhance revenue generation and contribute meaningfully to margin expansion in future periods.”
He also noted that the Group’s gross profit margin rose to 74% from 70% in the prior year, driven by stringent cost controls and efficiency gains.
“The Group achieved a strong uplift in profitability margins during the year, supported by disciplined cost‑management and enhanced operational efficiencies,” he said.
RTG Chief Executive Tendai Madziwanyika said that these results illustrate a robust commercial strategy that enabled RTG to dominate volume and market share while maintaining a strong revenue base. The Group’s superior performance reinforces its position as Zimbabwe’s leading hospitality operator and highlights the importance of continued investment in brand strength, distribution effectiveness and customer engagement to sustain momentum in a competitive landscape.
“The growth reflects the group’s deliberate, diversified strategy and its ability to respond quickly to changing market dynamics.”
“This growth reflects our deliberate approach to managing the business, combining innovation with a focus on maximising the potential of our diversified portfolio. Our resilience stems from not relying on a single revenue stream and our ability to continuously innovate and adapt quickly to market dynamics.”
“We have been very deliberate about managing our costs while also improving how we operate, and that is starting to show in our margins. Simple innovations, such as the introduction of the RTG Agro project where the Group now grows fast moving produce items such green vegetables, cabbage, lettuce, broccoli, onions helping us reduce costs significantly while also ensuring fresh and quality food experience for our guests.”
“The increase in foreign currency earnings is driven by stronger international travel and growing conferencing activity, particularly in Victoria Falls. Moreover, the acquisitions we made this year are part of a broader strategic plan, aimed at positioning the business for the future and creating new avenues for growth.”
“While there were costs associated with our expansion, these are strategic investments we are confident they will drive stronger performance in the future. These strategic investments have not only strengthened RTG’s market position but also improved its overall valuation, reflecting renewed confidence in the company’s growth prospects and future performance. We are optimistic about the year ahead, with robust demand, a strengthened portfolio, and a solid foundation to build on this momentum” said Hoto.
Rainbow Tourism Group (RTG) is one of Zimbabwe’s largest tourism companies, listed on the Zimbabwe Stock Exchange (ZSE) and certified under ZWS ISO 9001:2015 Quality Management Systems (QMS). The Group’s operations extend beyond hotels and include Heritage Expeditions Africa, a local tour operations subsidiary, and Gateway Stream, Zimbabwe’s leading digital marketplace for travel, accommodation, and retail services. RTG also maintains a regional sales and marketing office in Johannesburg, South Africa, to drive international business growth.
Through continuous investment in infrastructure, technology, and sustainability, RTG remains at the forefront of Zimbabwe’s hospitality sector, contributing significantly to tourism growth, economic development, and job creation.
