• RTG announces a total dividend of US$2.5 million for FY2024, up from US$1.5 million in 2023
• Total revenue for FY2024 reached US$44.4 million, a 2% increase from US$43.6 million
• Foreign currency revenues rose by 15% to US$19 million, driven by increased international business engagement

Harare-Rainbow Tourism Group Limited (RTG) has declared  total dividend of US$2.5 million for the year ended 31 December 2024, an increase from the US$1.5 million declared in 2023, following a stellar performance.

This dividend will consist of US$500,000 (0.020 US$ cents per share) paid in foreign currency and US$1 million (1.057 ZWG cents per share) in local currency.

“Following a strong financial performance in 2024, I am pleased to announce that the Board has declared a second and final dividend of US$1.5 million, of which US$500,000 (0.020 US$ cents per share) will be paid in foreign currency and the balance of US$1 million (1.057 ZWG cents per share) in local currency,” said Group chairperson Douglas Hoto in a financial statement.

Total revenue for the period reached US$44.4 million, a 2% increase from US$43.6 million in 2023 driven by strong performance in both accommodation and conferencing segments.

There was a 15% increase in foreign currency revenues, which rose to US$19 million from US$16.4 million.

As a result, operating profit from continuing operations was US$8.1 million, up from US$5.9 million in the previous year, resulting in a profit after tax of US$5.3 million compared to US$4.5 million in 2023, highlighting  the effectiveness of the Group’s strategies in enhancing revenue and managing costs, driven by strong performance in both accommodation and conferencing segments.

Anchoring profitability was the increase in occupancy rate to 54%  from 52% in 2023, courtesy of the Group’s refurbishments and room transformations.

During the year,  the Group refurbished 24 standard rooms into six diplomatic suites tailored for high-profile guests, increasing the hotel’s total to nine diplomatic suites and one presidential suite, while forty-eight  standard rooms were modernised into luxurious accommodations, and guest elevators ,thus,  enhancing security with a new floor access control system.

RTG has actively enhanced its offerings, particularly at the Rainbow Towers Hotel and Conference Centre, which underwent extensive renovations from March 29 to July 31, 2024.

As a result the Group managed to host events like the SADC Summit and the SADC Industrialisation Week, held from July 28 to August 8, 2024 which anchored the HY24 profitability.

However, the hospitality industry faced persistent inflationary pressures during the fiscal year stemming from currency depreciation, especially the devaluation which took place towards the end of the year that eroded earnings in local currency.

These squeezed margins and affected profitability efficacy.

Recurring drought spells also pushed food inflation, driving up costs.

Nevertheless, rigorous cost management initiatives helped RTG counteract these pressures, leading to improved gross profit margins of 70%, up from 69% in the prior year.

Looking ahead, the Group remains attentive to potential challenges arising from economic headwinds and geopolitical tensions in key source markets, including the Russia-Ukraine war and global conflicts such as U.S. trade wars.

These geopolitical tensions disrupt supply chains and increase costs for materials and energy, straining profit margins and creating market uncertainty that can deter investment and consumer spending, leading to reduced demand for RTG's services.

Travel restrictions and changing consumer behaviours due to these conflicts further complicate RTG's operational landscape, necessitating strategic adjustments to navigate the challenging environment.

In a positive development, the company is in the final stages of completing a transaction to acquire Montclair Hotel and Casino, which is set to enhance market presence and service offerings.

“This acquisition presents significant opportunities for revenue growth, operational synergies, and enhanced brand positioning.

‘’By integrating Montclair Hotel into our portfolio, we are well-positioned to capitalize on the increasing demand for quality hospitality experiences, reinforcing our commitment to sustainable expansion and long-term value creation,” Hoto said.

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