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Zimbabwe's RTG reports sharp rebound in foreign tourist arrivals
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Zimbabwe's largest hotel operator, Rainbow Tourism Group (RTG), has reported a strong rebound in foreign guest arrivals, signaling a wider recovery in the region's hospitality sector as international travel surpasses pre-pandemic levels.
RTG Chief Executive Madziwanyika told the Zimbabwe Independent this week that the group's foreign business has been growing steadily, with arrivals increasing by more than 25% annually. In the first quarter of 2025 alone, foreign arrivals grew by 17% compared to 2019, the last full pre-pandemic year.
"Africa played a crucial role in driving growth at RTG hotels in the first quarter of 2025, with arrivals rising sharply by 96%," Madziwanyika said.
Analysts attribute the surge in visitors to improved air connectivity, eased visa restrictions within the Southern African Development Community (Sadc), and growing disposable incomes in emerging economies such as Nigeria, Kenya, and South Africa.
RTG, which operates the flagship Rainbow Towers Hotel in Harare along with a growing portfolio of resorts and conference facilities, is also benefiting from renewed momentum in long-haul source markets. Visitor numbers from the United Kingdom-a traditional European source market for Zimbabwe-grew by 13% in the first quarter of 2025. Meanwhile, arrivals from Australia and New Zealand jumped by 33%, helped by targeted destination marketing campaigns, increased travel by diaspora communities, and expanded air links via Gulf carriers.
"The United Kingdom continues to be a significant contributor to European arrivals," Madziwanyika added. "Meanwhile, the jump from Australia and New Zealand is a promising sign of our growing global reach."
RTG's performance is attracting attention from regional investors and policymakers who see tourism as a key driver for foreign exchange earnings, job creation, and post-pandemic economic diversification. Before the Covid-19 crisis, tourism contributed about 4.1% to Zimbabwe's GDP. Under the government's Vision 2030 framework, the sector has been designated as a vital pillar for future economic growth.
Supporting this vision are recent policy reforms aimed at simplifying visa issuance through digital platforms, liberalizing airline routes, and fostering public-private partnerships to upgrade tourism infrastructure.
For RTG, these favorable conditions, coupled with growing regional travel, have improved earnings visibility. Although the group has yet to publish full quarterly financials, the sustained 25% annual growth in foreign business highlights resilient demand fundamentals.
RTG is also fast-tracking its digital transformation with new online booking platforms and cross-border mobile payment integration designed to ease the experience for international guests.
However, challenges remain. Persistent currency volatility, political uncertainties, and unreliable power supply continue to complicate the operating environment in Zimbabwe. Globally, the hospitality industry faces risks from climate change and geopolitical tensions that could disrupt long-haul travel.
Despite these headwinds, investor interest in African tourism assets has surged. Private equity firms and global hotel chains are actively scouting for acquisition and partnership opportunities in emerging markets across the continent.
In line with its growth ambitions, RTG has confirmed plans to enter South Africa's competitive hotel market, starting with a targeted expansion into Cape Town. The group is pursuing acquisitions and partnerships there to diversify its portfolio and revenue streams.
This regional expansion marks a strategic shift from RTG's historically domestic focus, reflecting increasing investor appetite for high-yield hospitality investments in Southern Africa.
The move follows RTG's recent US$5 million acquisition of the Montclair Resort & Conference Hotel in Nyanga, with further portfolio additions under active consideration.
The group remains optimistic about its prospects, having posted a positive net working capital position of US$3.4 million for the financial year ending December 31, 2024, driven largely by growth in foreign currency revenue.
RTG Chief Executive Madziwanyika told the Zimbabwe Independent this week that the group's foreign business has been growing steadily, with arrivals increasing by more than 25% annually. In the first quarter of 2025 alone, foreign arrivals grew by 17% compared to 2019, the last full pre-pandemic year.
"Africa played a crucial role in driving growth at RTG hotels in the first quarter of 2025, with arrivals rising sharply by 96%," Madziwanyika said.
Analysts attribute the surge in visitors to improved air connectivity, eased visa restrictions within the Southern African Development Community (Sadc), and growing disposable incomes in emerging economies such as Nigeria, Kenya, and South Africa.
RTG, which operates the flagship Rainbow Towers Hotel in Harare along with a growing portfolio of resorts and conference facilities, is also benefiting from renewed momentum in long-haul source markets. Visitor numbers from the United Kingdom-a traditional European source market for Zimbabwe-grew by 13% in the first quarter of 2025. Meanwhile, arrivals from Australia and New Zealand jumped by 33%, helped by targeted destination marketing campaigns, increased travel by diaspora communities, and expanded air links via Gulf carriers.
"The United Kingdom continues to be a significant contributor to European arrivals," Madziwanyika added. "Meanwhile, the jump from Australia and New Zealand is a promising sign of our growing global reach."
RTG's performance is attracting attention from regional investors and policymakers who see tourism as a key driver for foreign exchange earnings, job creation, and post-pandemic economic diversification. Before the Covid-19 crisis, tourism contributed about 4.1% to Zimbabwe's GDP. Under the government's Vision 2030 framework, the sector has been designated as a vital pillar for future economic growth.
Supporting this vision are recent policy reforms aimed at simplifying visa issuance through digital platforms, liberalizing airline routes, and fostering public-private partnerships to upgrade tourism infrastructure.
RTG is also fast-tracking its digital transformation with new online booking platforms and cross-border mobile payment integration designed to ease the experience for international guests.
However, challenges remain. Persistent currency volatility, political uncertainties, and unreliable power supply continue to complicate the operating environment in Zimbabwe. Globally, the hospitality industry faces risks from climate change and geopolitical tensions that could disrupt long-haul travel.
Despite these headwinds, investor interest in African tourism assets has surged. Private equity firms and global hotel chains are actively scouting for acquisition and partnership opportunities in emerging markets across the continent.
In line with its growth ambitions, RTG has confirmed plans to enter South Africa's competitive hotel market, starting with a targeted expansion into Cape Town. The group is pursuing acquisitions and partnerships there to diversify its portfolio and revenue streams.
This regional expansion marks a strategic shift from RTG's historically domestic focus, reflecting increasing investor appetite for high-yield hospitality investments in Southern Africa.
The move follows RTG's recent US$5 million acquisition of the Montclair Resort & Conference Hotel in Nyanga, with further portfolio additions under active consideration.
The group remains optimistic about its prospects, having posted a positive net working capital position of US$3.4 million for the financial year ending December 31, 2024, driven largely by growth in foreign currency revenue.
Source - Zimbabwe Independent
