By Dickson Bandera
Rainbow Tourism Group (RTG) has declared an interim dividend of US$1.2 million after delivering one of the strongest half-year financial performances in its history, underlining the hospitality giant’s robust earnings growth, resilient operations and growing confidence in Zimbabwe’s tourism sector.
The dividend, comprising US$650,000 payable in United States dollars and the equivalent of US$600,000 in Zimbabwe Gold (ZiG), follows an exceptional first six months of 2026 during which the Zimbabwe Stock Exchange-listed hospitality group recorded significant improvements in revenue, profitability and operational efficiency.
The latest declaration extends RTG’s impressive record of rewarding investors, having declared and paid dividends every year since 2018, cementing its reputation as one of the Zimbabwe Stock Exchange’s most consistent dividend-paying companies.
The strong shareholder return comes on the back of a remarkable financial performance for the six months ended 30 June 2026.
Group revenue surged 29 percent to US$26.8 million, up from US$20.8 million during the same period last year, while Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) more than doubled by 125 percent to US$5.4 million.
Profit before tax increased fourfold to US$3.2 million, with the EBITDA margin improving sharply from 11 percent to 19 percent, reflecting stronger operational performance and tighter cost management.
Unlike businesses whose growth is driven by one-off transactions, RTG’s earnings were underpinned by broad-based improvements across virtually every segment of its operations.
Occupancy strengthened across the group’s hotel portfolio as revenue per available room climbed 33 percent to approximately US$64, driven by improved pricing strategies and increased utilisation of premium accommodation, including suites and king rooms.
The Group’s revenue management strategy focused on attracting higher-value business rather than chasing occupancy through discounted pricing, enabling RTG to strengthen average daily room rates while enhancing overall profitability.
Foreign currency earnings also continued their upward trajectory, increasing 18 percent to US$11.6 million, supported by stronger international arrivals, regional conferences, increased NGO activity and sustained recovery in the Victoria Falls tourism market.
RTG’s Victoria Falls properties recorded a notable rise in occupancy from 54 percent to 65 percent, despite refurbishment works at A’Zambezi River Lodge, highlighting resilient demand and the success of the Group’s international marketing and distribution initiatives.
Conference and events business remained a major growth engine, with Rainbow Towers Hotel and Conference Centre continuing to host high-profile national and regional conferences, reinforcing its position as one of Zimbabwe’s premier conferencing destinations.
Food and beverage operations also delivered impressive growth, with revenue increasing 33 percent, boosted by the expanding contribution of RTG Mobile, the Group’s outside catering division that enables hospitality services beyond traditional hotel premises.
RTG is also positioning itself to capture a larger share of Zimbabwe’s growing events industry through its Event Planner Collaboration Programme, an initiative designed to support independent event organisers by providing access to the Group’s accommodation, conference facilities, catering services and operational expertise.
The Group’s profitability was further strengthened through disciplined cost management.
Gross profit margins improved from 68 percent to 75 percent, while RTG Agro continued to lower food production costs through its Garden-to-Plate initiative, supplying fresh produce directly to Group hotels, reducing procurement costs, improving food quality and advancing sustainability objectives.
Heritage Expeditions Africa also recorded improved operational efficiencies and is expected to contribute even more strongly during the second half of the year as international tourist arrivals traditionally peak.
Despite rewarding shareholders, RTG has continued investing aggressively in its future growth.
The Group is funding major refurbishment and expansion projects—including the ongoing transformation of Montclair Resort and Conference in Nyanga—through internally generated cash flows rather than increased borrowing.
The balance sheet also showed continued strengthening, with gearing reducing from 24 percent to 22 percent, borrowings declining from US$12.2 million to US$11.5 million, and the current ratio improving from 0.78 to 0.84.
The combination of record earnings, stronger cash generation, declining debt and continued capital investment positions RTG for sustained growth while maintaining its long-standing commitment to rewarding shareholders.
For investors, the interim dividend represents more than a payout—it signals growing confidence by the Board and management in the Group’s financial strength, resilient business model and long-term growth trajectory as Zimbabwe’s tourism and hospitality industry continues its recovery.
