This archive report was first published on 9 September 2019.
Published on September 9, 2019, Zanzibar is attracting international investors to its thriving tourism industry, aiming to increase the number of leisure and business visitors.
Over the past two years, several global hotel chains have established themselves on the island, making Zanzibar a leading hotel investment destination in East Africa. Notably, the Spanish chain RIU Hotels and Resorts has invested $56 million in the RIU Palace Zanzibar on Nunwgi Beach, which features 149 rooms.
Other notable investments include the $38 million Madinat El Bahr Hotel, owned by Tanzanian businessman Rustamali Merali, and the Hotel Verde, owned by Zanzibar tycoon Said Salim Bakhresa.
According to Zanzibar President Dr. Ali Mohammed Shein, the island's pristine beaches and rich Indian Ocean resources now give it a competitive edge in the tourism sector, allowing it to compete with the rest of East Africa for tourism benefits.
The government is working to attract more investors in the hotel and tourism sector, with a focus on increasing competitiveness. In a recent development, the government is collaborating with the Comoros to encourage business on the East Coast of the Indian Ocean.
With over 520,800 tourists visiting the island last year, tourism has become the leading economic sector for Zanzibar, generating over $312 million annually. The island is also hosting an annual tourism show, which will take place in September each year, with organizers aiming to attract over 650,000 visitors next year.
Under the Island's tourism marketing plan 2015-2020, launched in July, tourist companies operating in Zanzibar will come together to market tourist products under a single roof. According to Zanzibar Minister for Information, Tourism and Heritage Mahmoud Thabit Kombo, the plan aims to increase the average tourists' length of stay from eight days to 10 and the average daily spend to $570 from $307.
