RTG posts strong growth in half-year 2024

Oliver Kazunga

Senior Business Writer

HOSPITALITY market leader, Rainbow Tourism Group (RTG) has posted strong performance with revenue growing by 116 percent to US$18 million in the half year ended June 30, 2024.

RTG said despite the first quarter being a traditionally low season for the tourism industry as well as coupled with the prevailing challenging business environment, key performance indicators at the end of the half-year under review, were all positive.

“Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) was up 141 percent to close the period under review at US$1,4 million.

“Revenue grew by 116 percent to US$18 million, while occupancy at 52 percent was 13 percent above the same period in 2023.

“The group recorded an increase in volumes during the first six months to June 30, 2024, achieving an occupancy of 52 percent, a 13 percent growth from the 46 percent recorded in June 2023,” the group’s chairperson Douglas Hoto, said in a statement.

This growth into RTG hotels has been driven by the return of international tourists, which is now well ahead of pre-Covid-19 levels.

Food and beverage and conferencing activities also posted significant growth, with volumes increasing by 35 percent in the review period.

“As international tourism returns to normal in the Victoria Falls market, the growth trajectory is expected to continue into the industry’s peak season which traditionally lies in the second half of the year’, he said.

In an interview the RTG chief executive Tendai Madziwanyika (pictured) attributed the growth trajectory to a 14 percent increase in rooms sold and a 35 percent rise in banqueting and conferencing activities.

“With international tourism rebounding, especially in Victoria Falls, the Group expects continued foreign business growth as the peak season approaches,” he added.

During the period under review RTG completed the refurbishment of the Rainbow Towers Hotel and Conference Centre.

The works included the conversion of 24 standard rooms into six luxury ‘diplomatic’ suites, the refashioning of the remaining 48 standard rooms, the installation of two guest elevators, bringing the total to four Kone brand high -tech elevators with key card floor access control.

The Harare International Convention Centre was refurbished for the first time since it was built.

“All the seats were replaced with new seats and new carpets were installed. All the seats now have charging ports – 3,2 – pin and C type to ensure a seamless conferencing experience,” said Madziwanyika.