Rainbow Tourism Group Declares Interim Dividend of US$1.2 Million on Strong H1 2026

Earnings Rainbow Tourism Group Limited has declared an interim dividend of US$1.2 million following a record first-half performance characterized by strong revenue growth, improved margins, disciplined cost management and a continued strengthening of the Group’s financial position. 

The interim dividend comprises US$650,000 payable in United States dollars and the equivalent of US$600,000 payable in Zimbabwe Gold. The distribution 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 has declared and paid dividends every year since 2018. 

The consistency of the distributions has established RTG as one of the more dependable dividend-paying counters on the Zimbabwe Stock Exchange. The latest declaration is supported by substantial growth in the Group’s earnings during the six months ended 30 June 2026. Revenue increased by 29% to US$26.8 million from US$20.8 million in the comparative period, while EBITDA rose by 125% to US$5.4 million. 

Profit before tax increased fourfold to US$3.2 million, and the EBITDA margin improved from 11% to 19%. The improved earnings were driven by broad-based growth across all major operating areas rather than by a once-off transaction or a single business unit.

 Occupancy increased across the portfolio, while revenue per available room rose by 33% to approximately US$64. RTG also improved the quality of its room revenue through stronger yielding and better utilisation of premium accommodation categories, including suites, king rooms and other higher-specification rooms. This revenue-management approach enabled the Group to benefit from increased demand while protecting and improving average daily rates. Rather than pursuing occupancy at any price, RTG concentrated on attracting business that delivered appropriate value for the quality of its products and services. Foreign currency revenue increased by 18% to US$11.6 million. 

The improvement was supported by stronger international arrivals, regional conferencing, non-governmental organisation activity and the continued recovery of the Victoria Falls market. Occupancy at RTG’s Victoria Falls resort properties increased from 54% to 65%. 

The growth was achieved despite refurbishment-related disruption at A’Zambezi River Lodge and demonstrates the strength of the Group’s destination marketing and international distribution initiatives. Conferencing also performed strongly, supported by corporate, government and regional meetings and events. Rainbow Towers Hotel and Conference Centre continued to host major national and regional conferences, reinforcing its position as one of Zimbabwe’s leading conference facilities. Food and beverage revenue grew by 33%, with RTG Mobile outside catering contributing meaningfully to the increase. 

RTG Mobile allows the Group to provide hospitality and catering services at locations beyond its hotels, creating an additional revenue stream and expanding the addressable events market. The Group’s event planner collaboration programme is also expected to deepen RTG’s participation in the events value chain. The programme is designed to assist independent and smaller event planners by giving them access to RTG’s infrastructure, accommodation, catering capabilities, venues and operational expertise. 

The improvement in profitability was also supported by effective cost-containment measures. The Group’s gross profit margin increased from 68% to 75%, demonstrating improved cost efficiencies across its operations. RTG Agro contributed to lower food and beverage production costs by supplying fresh produce to Group hotels under the Garden-to-Plate model. In addition to reducing reliance on external suppliers, the initiative supports food quality, procurement efficiency and sustainability through reduced transportation, packaging and food miles.

 Heritage Expeditions Africa improved the profitability of its accommodation, transfer and tourism activities through better cost management and yielding. The business is expected to make a stronger contribution in the second half as international arrivals increase during the peak tourism period. 

The decision to declare an interim dividend has not come at the expense of growth. RTG continues to fund product upgrades and refurbishment initiatives, including the transformation of Montclair Resort and Conference, from internally generated cash flows. The Group’s balance sheet has also strengthened. Gearing reduced from 24% at the end of December 2025 to 22% at 30 June 2026, while borrowings declined from US$12.2 million to US$11.5 million. 

The current ratio improved from 0.78 to 0.84. This combination of stronger earnings, lower gearing, reduced borrowings and internally funded capital expenditure places RTG in a position to continue rewarding shareholders while investing in future capacity. The interim dividend therefore represents more than a cash distribution. It signals management and Board confidence in the Group’s cash-generating capacity, the quality of its earnings and the sustainability of its growth strategy.