RTG eyes US$100m revenue as expansion gathers steam

"I would like to say we plan to spend about US$1,6 million in place," RTG chief executive officer Mr Tendai Madziwanyika said during the group’s 26th annual general meeting in Harare last week.

Nelson Gahadza

Senior Business Reporter

Rainbow Tourism Group (RTG) has set an ambitious growth target to double its business to US$100 million from US$50 million, driven by new revenue streams, regional expansion and a pipeline of strategic investments.

Chief executive Mr Tendai Madziwanyika told an analysts briefing on Tuesday that the hospitality group was already gaining strong momentum, underpinned by a 35 per cent growth in the first quarter.

“We are targeting a US$100 million business from US$50 million. If you look at our performance, we are at US$50 million right now and in the first quarter, we grew 35 percent, which has never happened before,” he said.

He added that the growth trajectory is being driven by a cluster of new business units and investments, including Montclair Resort, Gateway Stream, Hexa and other emerging ventures that are expected to enhance revenue generation in the short to medium term significantly.

Mr Madziwanyika said Gateway Stream, a technology-driven global distribution platform, would be a major contributor going forward after RTG secured a partnership with a global player connected to over 500 000 hotels, representing more than 30 million rooms worldwide.

Through application programming interfaces (APIs), RTG will access net room rates globally and apply mark-ups, creating what Mr Madziwanyika termed “business while you sleep” due to the platform’s automated, round-the-clock nature.

“The arrangement allows us to tap into global distribution. The only limitation is how far we push our own platform, but the potential is significant,” he said.