HOSPITALITY giant Rainbow Tourism Group (RTG) has plans to expand its hotel portfolio across the country as it strategically positions itself for anticipated tourism growth.
The ZSE-listed hotelier’s balance sheet is currently debt-free which puts it in a good position to attract investment.
“We are looking at various options right now all over the country, mainly in Victoria Falls, Nyanga and Masvingo,” RTG chief executive, Tendai Madziwanyika told The Financial Gazette in an interview without divulging granular details on the financing of these projects.
Tendai Madziwanyika, the Rainbow Tourism Group (RTG) chief executive
“We think there is a lot of potential right now in our country.”
The hospitality industry has seen a notable number of expansion projects taking place across the country as players anticipate a surge in hotel space as the sector continues to grow.
The company seeks to increase its market share, but also contributes to the country’s economic development by expanding its hotel offerings.
Analysts say the country’s hospitality industry is attracting new entrants, both local and international, which could lead to a supply glut and decreased market share for RTG.
RTG recently indicated that it has so far realised US$500 000 in profit from operations during the first five months to May 31, 2024, surpassing earlier projections.
Players in the tourism and hospitality industry have become accustomed to slow business performance during this time of the year with visitors traditionally peaking in the fourth quarter.
According to the group, the hotel room occupancy rate grew to 60 percent, from 48 percent in the same period last year as foreign currency revenue rose 42,85 percent to US$5 million from US$3,5 million in the comparative period.
Two years ago, the group hit foreign currency revenue record of about US$11,1 million which was extended to US$16,4 million 2023 and is poised to grow even further this year.
The group is buoyed by the country’s hosting of the 44th Council of Ministers and Summit of Heads of States next month.
The main conference will take place at the new Parliament building in Mt Hampden while several other meetings will be hosted at the Rainbow Towers and Conference Centre, including accommodation of delegates.
The facility with a sitting capacity of 4 500 will host the SADC Industrialization week from July 28 to August 2 this year with at least 300 guests expected to take part.