Rainbow Tourism Group has reinforced its position as one of Zimbabwe's strongest-performing hospitality companies after reporting a significant surge in half-year earnings and declaring a US$1.2 million interim dividend.

The results reflect growing momentum across the group's hotels, conferencing, catering and tourism businesses, with management expressing confidence that the strong performance is built on sustainable growth drivers rather than a temporary market rebound.

The Zimbabwe Stock Exchange-listed hospitality group announced that shareholders will receive US$650,000 in United States dollars and the equivalent of US$600,000 in Zimbabwe Gold (ZiG), extending RTG's uninterrupted dividend-paying record since 2018.

Unlike many companies that suspend shareholder payouts while investing in expansion, RTG says it is achieving both simultaneously.

“The interim dividend reflects the Board's confidence in the durability of RTG's earnings and its commitment to balancing shareholder returns with continued investment in the Group's expansion programme,” RTG Corporate Affairs and Quality Manager Pride Khumbula said.

The confidence is underpinned by a sharp improvement in earnings quality during the six months ended June 30, 2026.

Revenue rose 29% to US$26.8 million from US$20.8 million in the comparable period, while EBITDA surged 125% to US$5.4 million. Profit before tax increased fourfold to US$3.2 million as the group's EBITDA margin widened from 11% to 19%.

The figures suggest RTG is no longer relying solely on the post-COVID tourism rebound but is extracting greater value from its operations through stronger pricing, improved efficiency and business diversification.

Rather than chasing occupancy through discounted room rates, the hotel operator focused on attracting higher-paying customers and increasing sales of premium accommodation.

Revenue per available room climbed 33% to around US$64, supported by stronger utilisation of suites, king rooms and other premium room categories.

That pricing discipline has enabled RTG to improve profitability while maintaining healthy occupancy across its hotel portfolio.

Foreign currency earnings also continued to strengthen, increasing 18% to US$11.6 million as international arrivals improved alongside regional conferencing, NGO business and the continued recovery of Victoria Falls tourism.

Occupancy at the group's Victoria Falls properties increased from 54% to 65% despite refurbishment work at A'Zambezi River Lodge, highlighting resilient demand in Zimbabwe's flagship tourism destination.

Conferencing remained another major earnings pillar, with Rainbow Towers Hotel and Conference Centre continuing to host major government, corporate and regional events.

Food and beverage revenue grew by 33%, boosted by RTG Mobile, the group's outside catering business that allows it to service events beyond its hotel network.

Management is also expanding its footprint in the events industry through partnerships with independent event planners, giving them access to RTG's venues, catering infrastructure and accommodation facilities.

The group's profitability was further strengthened by tighter cost controls.

Gross profit margin improved from 68% to 75%, with RTG Agro helping reduce food production costs by supplying fresh produce directly to hotels under its Garden-to-Plate initiative.

Meanwhile, Heritage Expeditions Africa also improved profitability and is expected to contribute more strongly during the second half of the year, as international tourist arrivals typically increase.

Significantly, RTG's stronger earnings have been accompanied by an improving balance sheet.

Borrowings declined from US$12.2 million to US$11.5 million, while gearing eased from 24% to 22%. The company also improved its liquidity, with the current ratio strengthening from 0.78 to 0.84.