Rainbow Tourism Group Limited recorded solid performance in the first quarter ended 31 March 2026, with gains in occupancy, revenue, and foreign currency earnings, even as global tensions weighed on the broader tourism sector.
Group occupancy rose to 51%, up 6% from 48% in Q1 2025. Revenue grew 32% year-on-year to US$11.4 million from US$8.7 million. Revenue per available room (RevPAR) increased 19% to US$57 from US$48. Growth was driven by higher food and beverage sales at city hotels and continued strong demand at resort properties. Foreign currency revenues climbed 21%, supported by a 40% revenue jump at the Group’s resort hotels. Heritage Expeditions Africa, the Group’s tour operations unit, grew revenue by 36% after completing the integration of Batoka Safaris, acquired in July 2025. Management cited rising demand for curated Zimbabwean tourism experiences as a key driver.
Zimbabwe’s operating environment was relatively stable in Q1, with the ZiG exchange rate holding steady and inflation below 1%. However, ongoing geopolitical tensions in the Middle East disrupted tourism through higher fuel prices and flight cancellations by Middle East carriers.
RTG continued its product upgrade program during the quarter, completing refurbishment of the remaining 44 rooms at A’Zambezi River Lodge. Works covered interiors, aesthetic upgrades, and rethatching. The Group is set to begin a US$1.8 million refurbishment of 100 rooms at Montclair Resort and Conference on 1 June 2026. On completion, RTG expects the property to be the leading hospitality destination in the Eastern Highlands.
The company expects demand to remain strong through 2026, supported by the recovery of international tourism in Victoria Falls and growth in the conferencing segment. Operating margins are also projected to improve following cost-reduction measures and new efficiency initiatives. The Group remains optimistic about full-year performance, citing its diversified portfolio, ongoing product enhancements, and focus on customer experience and sustainable growth.
