Almot Maqolo, Staff Writer 
HOSPITALITY giant Rainbow Tourism Group (RTG) has significantly increased its support for local suppliers, spending a staggering $28,26 billion in 2023, a 232 percent increase from the $8,52 billion spent in 2022.
This surge in local procurement comes as the group actively champions the use of Zimbabwe’s new currency, the ZiG.
In an interview with The Financial Gazette, RTG chief executive Tendai Madziwanyika emphasised the importance of supporting local businesses.
“As our local industry continues to get itself organised and substitutes imports, we would like to support them. It’s very important that we support our own, just like now we would like to support the ZiG.
Tendai Madzivanyika
“It’s important that, as a people, we start becoming confident in ourselves as long as our local people start producing good quality products that are competitive… We want to continue to look for people who can supply the right product.”
The group streamlined its supplier base, reducing the number of suppliers by 15 percent to 383 in 2023. This strategic move aims to “enhance” efficiency and maintain a more manageable network of partners.
RTG’s strong performance in the conference business during the second half of 2023, driven by major events such as the harmonised elections and the ICASA conference, resulted in a 126 percent revenue increase to ZWL266,3 billion for the year.
The group’s financial health was further bolstered by a 173 percent increase in revenue per available room, exceeding pre-Covid levels.
Occupancy rates also saw a positive uptick, rising to 52 percent from 51 percent in 2022.
Despite reduced business activity in the first half of the year, RTG maintained a healthy gross profit margin of 72 percent, consistent with industry benchmarks. This achievement was partly due to cost-cutting measures such as the switch to solar energy at the Kadoma Hotel and Conference Centre, which reduced hydro-electric consumption by 40 percent.
RTG’s commitment to local suppliers and its focus on operational efficiency highlight its strategic approach to navigating Zimbabwe’s evolving economic landscape.
newsedesk@fingaz.co.zw
