HOSPITALITY concern, Rainbow Tourism Group (RTG) is pushing ahead to complete its expansion drive, as it moves to become Zimbabwe's largest tourism-focused company.
This comes after RTG acquired its Cape Town property in South Africa this year and the Montclair Hotel and Casino in Nyanga in November 2024, with even more expansion plans in the pipeline.
In an interview, RTG chief executive officer Tendai Madziwanyika told NewsDay Business that RTG is firmly in its growth phase now.
“RTG is firmly in its growth phase now; we are therefore deliberately taking debt to support carefully selected opportunities. We remain significantly under-geared, giving us ample balance sheet flexibility,” he said.
“Debt will continue to be used selectively to fund expansion, with each project assessed on its returns, risk profile, and strategic importance to determine the optimal funding mix.
“This disciplined approach ensures leverage enhances shareholder value while safeguarding financial strength and long-term sustainability.”
He explained how the group was pursuing a blended financing model for its expansion plans.
“We are pursuing a blended financing model that includes: Internal cash generation; strategic debt instruments; and potential joint venture partnerships,” Madziwanyika said.
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“The expansion timeline is phased up to 2028, allowing us to deploy capital efficiently without compromising balance sheet stability.”
He said the Montclair purchase strengthened the group’s position in Zimbabwe’s domestic leisure and conferencing markets.
“This acquisition will prove to be a landmark development as we aim to position Montclair as a conferencing destination as well as a node for the wider development of the Eastern Highlands as an alternative destination to the Victoria Falls.
“The eastern highlands is nearer and easier to access. There are now direct flights to Mutare,” Madziwanyika said.
“Nyanga is a growing leisure and corporate retreat destination. There is strong demand for nature-based escapes, wellness tourism and team-building venues.
“We are positioning Montclair to capture this demand through refurbishment, packaged experiential stays driven by our tour operations subsidiary Heritage Expeditions Africa, and integration into our national conferencing circuit.”
The RTG boss said Zimbabweans were increasingly exploring the country — which the hotelier intends on exploiting.
According to Treasury, the country is expecting to attract 947 103 and 1,87 million domestic and international tourist arrivals, respectively, next year.
For 2025, domestic and international tourist arrivals are expected at 945 213 and 1,79 million, respectively.
“The Cape Town property marks RTG’s Pan-African entry. Refurbishment and conversion into a hotel will take place over the next two years.
“We are currently finalising brand positioning, operator-partner options, and design work.
“Cape Town is a high-yield tourism hub, and we expect strong returns driven by international tourism and year-round business travel. “This investment diversifies our revenue base and positions RTG as a regional hospitality player.”
RTG is also planning on increasing its river cruises, transfers, and adventure activities through its tour operator, Heritage Expeditions Africa, after it acquired Batoka Safaris.
“Batoka Safaris enhances our vertical integration by strengthening Heritage Expeditions Africa, particularly in river cruises, transfers, and adventure activities,” Madziwanyika said.
“The acquisition allows us to internalise more of the value chain, improve margins, and curate seamless guest experiences — from accommodation to activity.
“It also strengthens our positioning in Victoria Falls, one of Africa’s leading tourism destinations.”
