Rainbow Tourism Group (RTG) recorded a 32 percent increase in revenue during the first quarter of 2026, supported by improved occupancy levels, growth in resort operations and increased foreign currency earnings.
According to the group's trading update for the period ended March 31, 2026, revenue rose to US$11.41 million from US$8.65 million recorded during the same period last year.
Occupancy increased by 6 percent to 51 percent from 48 percent, while revenue per available room (RevPAR) grew by 19 percent to US$57 from US$48.
RTG said the operating environment remained relatively stable during the quarter, aided by a stable Zimbabwe Gold (ZiG) exchange rate and inflation levels that remained below one percent. However, the group noted that geopolitical tensions, particularly in the Middle East, continued to affect tourism through rising fuel costs and flight cancellations by some airlines.
The company said strong operational performance during the quarter was driven by increased food and beverage activity across city hotels and sustained business growth at its resort properties.
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Foreign currency revenues increased by 21 percent, largely supported by resort hotels, which recorded a 40 percent rise in revenue.
RTG also reported progress in integrating Heritage Expeditions Africa (HExA), a tourism subsidiary acquired in July 2025. The company said the subsidiary's revenue grew by 36 percent during the quarter, supported by growing demand for curated tourism experiences across Zimbabwe.
As part of its product enhancement programme, RTG completed the refurbishment of the remaining 44 rooms at A'Zambezi River Lodge. The renovations included upgrades to room interiors, aesthetic improvements and rethatching works.
The group is also preparing to begin a full refurbishment of 100 rooms at Montclair Resort and Conference Centre, with construction scheduled to start on June 1, 2026. RTG has budgeted approximately US$1.8 million for the project and expects the upgrades to strengthen the property's position as a hospitality destination in the Eastern Highlands.
Looking ahead, the company said it expects continued growth in demand for its services, supported by the recovery of international tourism in Victoria Falls and expansion in the conferencing business.
RTG said ongoing cost management measures, product enhancements and innovation initiatives are expected to support improved operating margins and sustainable growth throughout the remainder of the 2026 financial year.
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