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Enacy Mapakame
Zimbabwe Stock Exchange (ZSE)-listed hospitality group, Rainbow Tourism Group (RTG) projects a stellar earnings performance for the year to September 2024 and going forward, as it leverages regional and international markets.
The tourism and travel industry across Africa has been experiencing significant growth in recent years, driven by several factors among them improved infrastructure, rising middle-class population, and increased connectivity.
The region is expected to be a new growth frontier of global tourism with arrivals expected to reach 134 million in 2030 from the current 22 million, representing a six-fold growth.
By 2030 Africa will be home to 124 000 hotels from the current 52 000 hotels, which will also drive growth in the sector.
Now, RTG also wants to claim its share of the cake.
“Forecasts for 2024 indicate a robust revenue performance driven by the recovery of regional and international business,” said chairman Mr Douglas Hoto.
For RTG, the bright prospects also come at a time when the tourism sector has been identified as a key enabler of economic growth in Zimbabwe. The Government has identified the sector as one of the low-hanging fruits with the potential to bolster the economic upturn.
The domestic market has remained consistent post-Covid-19 pandemic period and is anticipated to grow driven by the national infrastructure development projects being rolled out by the Government of Zimbabwe.
“The group can reap significant benefits from the growth of leisure tourism in the Victoria Falls market and national conferencing activities. Volumes are projected to improve for city hotels’ accommodation and conferencing activities,” said Mr Hoto.
Mr Hoto added that the company will explore collaborations with partners to unlock shareholder value, leveraging strategic alliances and innovative partnerships to drive sustainable growth and enhance its competitive position in the market.
The group recently entered a partnership with Grand Metropolitan Hotels to capitalise on the Swiss hospitality giant’s expertise and international networks. This will help the group tap into the anticipated regional and international increase in travel and tourism.
Experts estimate that international air connectivity and intra-regional and intra–African travel will drive airline volume growth at an annual rate of 8 percent between now and 2030 compared to the global average of 4,5 percent.
The collaboration with Grand Metropolitan Hotels will enable RTG to tap into these opportunities. The partnership entails management contracts in hotels across Africa, sharing of best practices in hotel management, marketing collaboration, cross-promotion of properties as well as the establishment of a hospitality school in collaboration with Swiss Hotel School Lucerne. This will enhance the competitiveness of the two hospitality groups allowing them to boost market share and earnings.
Online Reporter