Zimbabwe's largest hospitality firm, Rainbow Tourism Group (RTG) has reported strong revenue growth for the 2025 financial year even as profits declined due to increased investment and expansion costs.
In its latest analyst briefing, the group said total revenue rose by 13.2% to just over US$50 million driven by higher occupancy rates, growth in foreign currency earnings and contributions from newly acquired businesses.
However, profit after tax fell sharply by 39% to US$3.25 million. The company attributed the decline to rising depreciation, financing costs linked to new borrowings and expenses associated with expanding its portfolio.
RTG said it had invested heavily in acquisitions and infrastructure, including tourism ventures and hotel upgrades which pushed total assets up by more than 28% to US$82.7 million.
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Despite the drop in profits, the group highlighted improved operational efficiency with gross profit margins increasing to 74% from 70% the previous year.
Cost-saving measures including agricultural initiatives and procurement efficiencies helped the company save an estimated US$1.6 million.
Foreign currency earnings grew by 28% supported by increased regional business particularly within the Southern African Development Community (SADC).
This helped offset a US$3 million decline in NGO-related business following funding cuts by international donors.
The company also reported rising demand in conferencing and hospitality services with occupancy climbing to 57% and revenue per available room increasing by 15%.
In a sign of confidence, RTG increased its total dividend payout by 72% to US$2.8 million.
Early figures for 2026 suggest continued momentum. In the first quarter alone, revenue surged by 35% while profit before tax rebounded strongly from a loss in the same period last year.
The group said growth was being driven by conferencing, outside catering and digital platforms including its hospitality "super-app", which now operates across 28 countries and lists hundreds of properties.
Looking ahead, RTG plans further expansion including refurbishments of key properties and a major international development project in Cape Town.
The company is also targeting increased market share in tourism hotspots such as Victoria Falls and Harare.
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Executives say the strategy is to diversify revenue streams while maintaining cost discipline positioning the group as a leading player not only in hospitality but also in digital and experiential tourism across Africa.
Despite economic headwinds including rising fuel costs, the company said the impact on operations remained minimal and manageable.
RTG's leadership remains optimistic, describing the business as entering a "growth phase" with long-term ambitions to significantly increase shareholder value by the end of the decade.
