Online Reporter
Business Reporter
RAINBOW Tourism Group has set its sights on becoming a US$100 million revenue business by next year after recording a 29 percent increase in half-year revenue to June 2026.
The hospitality giant is banking on Zimbabwe’s growing tourism industry, hotel expansion and the group’s new revenue streams to drive its next phase of growth.
In an interview, RTG chief executive officer Mr Tendai Madziwanyika said the hospitality concern’s revenue for the six months to June 30, 2026 rose to US$26,8 million from US$20,8 million in the comparable period last year, while foreign currency earnings increased 18 percent to US$11,6 million, reflecting growing international business and stronger tourism activity.
He said his organisation was targeting revenue of US$70 million this year, up from US$50,3 million last year, before reaching the US$100 million milestone by the end of 2027.
“We want to grow revenue from US$50 million to US$70 million this year and to US$100 million by the end of 2027,” he said.
“We know exactly where that growth is going to come from — through new revenue streams, expansion, upselling and improved utilisation of our existing assets.”
Mr Madziwanyika said the revenue growth would not be driven by higher room tariffs, but by expanding capacity, creating new business lines and improving operational efficiencies.
He said RTG’s occupancy rate increased to 55 percent from 49 percent in the first half of the year and is projected to exceed 65 percent by year-end as the business enters the peak international travel season.
“Our first half normally contributes about 40 percent of annual revenue. As we move into the second half, occupancy increases because international travellers come during this period and that improves both occupancy and room rates,” said Mr Madziwanyika.
The group’s profitability also strengthened significantly, with gross profit margin rising to 75 percent from 68 percent during the same period last year, a level Mr Madziwanyika said was approaching international best practice.
Earnings before interest, tax, depreciation and amortisation (EBITDA) surged by 122 percent to US$5,4 million, underlining stronger cash generation and improved operational performance.
Mr Madziwanyika attributed the group’s performance to improved operational efficiencies, a strong corporate culture and Zimbabwe’s increasingly stable macroeconomic environment.
“We believe the Reserve Bank of Zimbabwe and the Ministry of Finance have done well in managing currency stability,” he said.
“The stability is clear for everyone to see and that has created a more predictable operating environment for business.”
To support future growth, RTG is expanding room capacity across its hotel portfolio.
Montclair Hotel in Nyanga has been increased from 85 to 110 rooms following refurbishment, while New Ambassador Hotel in Harare and Bulawayo Rainbow Hotel are set to add 28 and 29 rooms respectively over the next 12 months.
The group is also diversifying into outside catering, expanding conference and events services, introducing new hospitality products and developing leisure facilities, including a proposed activity park, as part of efforts to unlock additional revenue streams.
In another milestone, RTG recently became the first hospitality company in Southern Africa to attain ISO 27001 certification for information security management and is among the first organisations in sub-Saharan Africa to achieve ISO 22301 certification for business continuity, while pursuing ISO 42001 certification on artificial intelligence management.
Mr Madziwanyika said the certifications reflected RTG’s ambition to build a technology-driven, world-class hospitality business capable of competing with leading regional and international operators while supporting Zimbabwe’s tourism growth.
Despite the strong outlook, he said the group remained cautious of external geopolitical developments, which had already weighed on performance during the first half of the year.
“Our risk factors are not really domestic; they are more external. Events in the Middle East and other parts of the world have already affected us to the tune of over US$700 000 this year.
“Disruptions to international airlines and global fuel supplies are risks that can affect tourism, while higher fuel prices and petrochemical products also have an impact on our business,” said Mr Madziwanyika.
However, he said RTG remained optimistic about Zimbabwe’s tourism prospects and welcomed efforts to strengthen the country’s aviation sector, saying the group was ready to partner with Air Zimbabwe, the Zimbabwe Tourism Authority and Government to develop travel packages supporting the planned London route and boosting tourist arrivals.
“We are excited about Air Zimbabwe. We will work with Air Zimbabwe, the Zimbabwe Tourism Authority and the ministry to come up with packages that make the route viable. A country without its own airline is a problem, so we want to support Government’s efforts,” he said.
