RTG upbeat on outlook

CLOUDINE MATOLA

Rainbow Tourism Group (RTG), a publicly traded hospitality group, is projecting revenue and profitability growth this year, underpinned by a noteworthy upturn  in both domestic and international business, Business Times can report.

The latest development was revealed by the RTG chairman Douglas Hoto, who expressed optimism for the anticipated growth.

“Forecasts for 2024 indicate a robust revenue performance driven by the recovery of regional and international business. Domestic business has proved to be consistent post-Covid 19 pandemic and is anticipated to grow driven by the national infrastructure development projects being rolled out by the Government of Zimbabwe,” Hoto said.

He went on to say  the organisation will gain from the rise in leisure tourism in the Victoria Falls and  the anticipated growth in demand  for conference space and hotel rooms in city hotels.

“The group can reap significant benefits from the growth of leisure tourism in the Victoria Falls market and from national conferencing activities. Volumes are projected to improve for city hotels accommodation and conferencing activities,” he said.

Hoto said that the business will look into working with partners to generate shareholder value. It will use creative partnerships and strategic alliances to promote long-term growth and improve its marketability.

In its financial results for the 12 months to December 31, 2024, profit for RTG  increased by 519%  to ZW$27.9bn from ZW$4.5bn earned in 2022.

The group’s revenue climbed 126% to ZW$266.3bn in the period under review from ZW$117.7bn recorded the previous year. This growth was attributed to increase in conferencing business across the city hotels during the second half of the year.

Revenue from rooms  grew by 281%  in the period under review to ZW$106.4bn  from ZW$27.9bn recorded in 2022.

Additionally, revenue from food and beverage increased by 81% to ZW$139.2bn from ZW$76.9bn and other revenues income growth of 61% to ZW$20.7bn from  ZW$12.9bn registered the previous year.

The group’s overall occupancy for the year grew by 2% to 52% from the 51% reported in 2022.

RTG’s foreign currency business increased as a result of regional and international business which together grew by 129%.

The group maintained its gross profit margin at 72% over the past two years which is within the industry benchmarks.