Zimbabwe's largest hotel operator, Rainbow Tourism Group (RTG), has reported strong rebounds on foreign guest arrivals, indicating a wider recovery in the regional hospitality sector as international travel exceeds pre-pandemic levels.
RTG CEO Madziwanyika told Zimbabwean Independents this week that the group's foreign operations are growing steadily, with arrivals rising more than 25% per year. In the first quarter of 2025 alone, foreign arrivals increased 17% compared to 2019, the previous year before.
“Africa played a key role in spurring growth at RTG hotels in the first quarter of 2025, with arrivals rising sharply by 96%,” said Madziwanyika.
Analysts attribute the surge in visitors to improved air connectivity, ease visa restrictions within the South African Development Community (SADC), and to expand disposable income in emerging economies such as Nigeria, Kenya and South Africa.
The growth of RTG, which operates Harare's flagship Rainbow Towers Hotel, and its portfolio of resorts and conference facilities, is also benefiting from new momentum in the long-distance source market. Number of visitors from the UK – In the first quarter of 2025, Zimbabwe's traditional European source market rose 13%. Meanwhile, arrivals from Australia and New Zealand increased by 33%, expanding targeted destination marketing campaigns, an increase in diaspora communities and air links via Gulf Carriers.
“The UK continues to be a significant contributor to Europe's arrival,” Majwanika added. “On the other hand, the jumps from Australia and New Zealand are promising signs of growth in our global reach.”
The performance of RTGs has attracted attention from local investors and policymakers who view tourism as a key driver of forex revenue, job creation and economic 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 is designated as an important pillar for future economic growth.
Supporting this vision is a recent policy reform aimed at simplifying the issuance of visas via digital platforms, liberalizing airline routes, and promoting public-private partnerships to upgrade tourism infrastructure.
In the case of RTG, these favorable conditions, coupled with regional travel growth, improve revenue visibility. The group has not yet published its full quarterly finances, but the 25% annual growth rate in foreign businesses highlights the basis of resilient demand.
RTG is also rapidly tracking digital transformations using a new online booking platform and cross-border mobile payment integration designed to facilitate the international guest experience.
However, there are still challenges. The sustained currency volatility, political uncertainty and unreliable power supply continue to complicate Zimbabwe's operational environment. Globally, the hospitality industry faces risks from climate change and geopolitical tensions that can disrupt long-distance travel.
Despite these headwinds, investors' interest in African tourism assets has skyrocketed. Private equity companies and global hotel chains are actively scouting acquisitions and partnership opportunities in emerging markets across the continent.
In line with its growth ambitions, RTG confirmed its plans to enter the competitive hotel market in South Africa. The group pursues acquisitions and partnerships there to diversify its portfolio and revenue streams.
The expansion of the region has shown a historically strategic shift from the domestic focus of RTG, reflecting an increasing desire for high-yield hospitality investments in South Africa.
The move follows the recent US$5 million acquisition of RTG of NYANGA's Montclair Resort & Conference Hotel, followed by the addition of a more aggressively considered portfolio.
The group remains optimistic about its outlook as it acquired a positive working capital position of US$3.4 million for the fiscal year ending December 31, 2024.
