Rainbow Tourism Group declares interim dividend

ZIMBABWE Stock exchange listed hospitality concern Rainbow Tourism Group (RTG) has declared an interim dividend in the recently published H1 2024 financial results.

In a statement accompanying the company’s financial results, RTG board chairman  Douglas Hoto said the Group had declared an interim dividend of US$1,000,000, of which US$400,000 will be paid in United States dollars and the balance in ZiG.

“The dividend will be payable on 31 October 2024”. The Group has consistently  declared a dividend for its shareholders in the past five years, this includes at the height of the COVID-19 pandemic,” said Hoto.

Douglas Hoto

The hospitality market leader posted strong performance in the first half of 2024, this was despite the first quarter being the traditional low season for the industry as well as the prevailing challenging business environment. Key performance indicators for the period were all positive. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) was up 141% to close the period under review at US$1,4 million. Revenue grew by 116% to US$18 million, whilst occupancy at 52% was 13% above the same period in 2023.

“The Group recorded an increase in volumes during the first six months to 30 June 2024, achieving an occupancy of 52%, a 13% growth from the 46% recorded in June 2023. This growth into RTG hotels has been driven by the return of international tourists, which is now well ahead of pre-Covid-19 levels. Food & beverage and conferencing activities also posted significant growth, with volumes increasing by 35% in the review period. As international tourism returns to normal in the Victoria Falls market, the growth trajectory is expected to continue into the industry’s peak season which traditionally lies in the second half of the year’, said Hoto.

Commenting on the financial results, RTG Chief Executive  Tendai Madziwanyika said “ This growth was driven by a 14% increase in rooms sold and a 35% rise in banqueting and conferencing activities. With international tourism rebounding, especially in Victoria Falls, the Group expects continued foreign business growth as the peak season approaches”.

Tendai Madziwanyika, the Rainbow Tourism Group (RTG) chief executive

During the period under review the Group completed the refurbishment of the Rainbow Towers Hotel & Conference Centre. The works included the conversion of 24 standard rooms into six luxury ‘diplomatic’ suites, the refashioning of the remaining 48 standard rooms, the installation of two guest elevators, brining the total to four Kone brand high -tech elevators with key card floor access control. The Harare International Convention Centre was refurbished for the first time since it was builf “ All the seats were replaced with new seats and new carpets were installed. All the seats now have charging ports – 3,2 – pin and C type to ensure a seamless conferencing experience” he said.

As part of its sustainable business practices the Group planted 6050 trees in schools in Kadoma where it operates the Kadoma Hotel and Conference Centre. Through the program the Group targets to attain a net zero position for its direct carbon emissions. “Sustainability is at the core of the Group’s strategy wherein it seeks to apply this philosophy across its business operations.

These include strategies to address the Group’s impact on the environment with a focus on the sustainable management of energy, water, and the environment. The company’s sustainability efforts are founded on the United Nations Sustainable Development Goals (SDGs) where it focuses on SDG 1, 2 and 13. These SDGs seek to eradicate poverty, hunger and adopting a responsible approach to matters around climate change impact. During the first half of 2024 the company launched the pilot afforestation project where it planted 6,050 trees in ten primary schools in Kadoma. At maturity, the trees will offset an estimated 133,100KG of carbon dioxide.

The company aims to achieve a net zero position for its direct minimum carbon emissions by 2027. These efforts complement the strides made by the Group to adopt green energy solutions at Kadoma Hotel and Conference Centre where a 300KVA solar plant was recently installed” said Hoto.

In his outlook Mr. Hoto said “The strong recovery in international tourism at RTG hotels is expected to surpass the best-ever performance recorded in post-pandemic years. Our strategic focus will be on protecting and indeed enhancing profit margins through diligent cost management and the adoption of innovative business models. We remain committed to leveraging synergies with our valued business partners and fostering a motivated workforce to create lasting value for our shareholders”