Online Reporter
Nelson Gahadza
Rainbow Tourism Group (RTG) recorded a strong start to its 2026 financial year, with a 32 percent increase in revenue in the first quarter, as growth in resort operations, city hotels and tour activities helped offset challenges posed by global geopolitical tensions.
In a trading update for the quarter ended March 31, 2026, the hospitality group reported revenue of US$11,4 million, up from US$8,7 million recorded during the same period last year, while occupancy rose 6 percent to 51 percent.
The improved performance comes despite lingering headwinds facing the tourism sector, including rising fuel costs and flight disruptions linked to ongoing tensions in the Middle East.
RTG said the operating environment remained relatively stable during the quarter, supported by a stable Zimbabwe Gold (ZiG) exchange rate and inflation levels below 1 percent.
“Occupancy increased to 51 percent from 48 percent in the prior-year, while revenue per available room (RevPAR) climbed by 19 percent to US$57 from US$48,” reads part of the update.
The group attributed the growth to increased food and beverage business across its city hotels and continued strong demand at its resort properties.
Foreign currency revenues grew by 21 percent, driven mainly by resort hotels, which recorded a 40 percent increase in revenues during the period.
RTG said Victoria Falls-based properties continued to benefit from the gradual recovery in international tourism, helping to strengthen the group’s foreign currency earnings.
During the period under review, RTG’s tour operations subsidiary, Heritage Expeditions Africa (HExA), also delivered solid growth following the integration of Batoka Safaris, which was acquired in July last year.
The subsidiary’s revenues rose by 36 percent during the quarter, underpinned by growing demand for curated tourism experiences across Zimbabwe.
The group said the performance is expected to be sustained throughout the remainder of the year as demand for experiential tourism products continues to strengthen.
As part of its strategy to enhance guest experiences and maintain competitiveness, RTG completed the refurbishment of the remaining 44 rooms at A’Zambezi River Lodge during the quarter.
The upgrades included room interior improvements, aesthetic enhancements and rethatching works.
The hospitality group is also preparing to undertake a major refurbishment project at Montclair Resort and Conference Centre in the Eastern Highlands.
RTG said full refurbishment works on 100 rooms are scheduled to commence on June 1, 2026, at a total cost of US$1,8 million.
Upon completion, the company expects the property to be positioned as a premier hospitality destination in the region.
Looking ahead, RTG expressed optimism about the remainder of the financial year, citing continued recovery in international tourism, particularly in Victoria Falls and growing demand from the conferencing segment.
The group also expects improved profitability as a result of cost-containment measures and operational efficiency initiatives implemented across its businesses.
