THE UNITED REPUBLIC OF TANZANIA

INDICATIVE TOURISM MASTER PLAN

FOR
ZANZIBAR AND PEMBA

FINAL REPORT
JANUARY 2003

40 Northumberland Ave. Dun Laoghaire. Co. Dublin Ireland:

Telephone + 353 1 284 4760: Fax + 353 1284 4775:
Website: www.chl.ie: E-mail: mail@chl.ie.

CONTENTS
Section
1.
2.
3.
4.

INTRODUCTION
EXECUTIVE SUMMARY
TOURISMS ECONOMIC SIGNIFICANCE
TOURISM IN ZANZIBAR TODAY

Page
5
6
10
13

4.1 STRUCTURE OF THE TOURISM SECTOR

4.2 INSTITUTIONS
4.3 DEMAND CHARACTERISTICS

12
13
14

5. ZANZIBARS MARKET PERFORMANCE

16

5.1 COMPETING DESTINATIONS

5.2 MARKETING EXPENDITURE
5.3 EXPOSURE IN TOUR OPERATOR CATALOGUES AND WEBSITE

16
17
19

6. TOURISM ATTRACTIONS ACCESS AND INFRASTRUCTURE

22

6.1 TOURIST ATTRACTIONS

6.2 UNGUJA
6.3 PEMBA
6.4 INFROMATION INTERPRETATION CENTERS
6.4 CIRCUIT EXTENSIONS
6.6 ACCESS AND INFRASTRUCTURE
6.7 ZANZIBAR PRODUCT SWOT ANALYSIS

22
22
24
25
26
26
27

7. SERVICE STANDRDS, TRAINING NEEDS AND FACILITIES

30

7.1 IMPORTANCE OF TRAINING

7.2 PROFILE OF EMPLOYMENT
7.3 TRAINING NEEDS
7.4 TOURISM TRAINING FACILTIES
7.5 IMPROVING SERVICE STAMDARDS

30
30
31
32
33

8. ENABLING ENVIRONMENTS

35

8.1 INSTITUTIONAL ARRANCEMENTS

8.2 LEGAL FRAMEWORK
8.3 ENVIRONMENT FOR ENTERPRISE DEVELOPMENT

35
36
38

9. DEVELOPMENT POLICY GUIDELINES

9.1
9.2
9.3
9.4
9.5
9.6
9.7
9.8
9.9

THE FUTURE CHARACTER OF TOURISM IN ZANZIBAR

TOURISM POLICY AND PLANNING FOR ZANZIBAR
SMALL OFFSHORE ISLANDS
ECO-TOURISM DEVELOPMENT
THE LAND LEASE PROBLEM
RECOMMENDATIONS FOR ACTION
TOURISM AND THE ENVIRONMENT
PROTECTED TERRESTRIAL AREAS
CULTURAL SITES

39
39
40
44
44
45
46
48
49
50

10
MARKET PRODUCT POTENTIAL AND GROWTH
51
PROJECTIONS
11
53
12

ACTION PROGRAMMES
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8

13

MASTER PLAN STRATEGY

56

IMPROVING KNOWLEDGE AND KNOW-HOW

ATTRACTING CAPITAL INVESTMENT

56
56
ENHANCING AND EXPANDING THE TOURISM PRODUCT 57
IMPROVING SERVICE STANDARDS
58
IMPROVING ACCESS, TRANSPORT AND INFRASTRACTURE 60
IMPROVING SECURITY
61
CREATING GREATER MARKET AWARENESS
62
STRENGTHENING INSTITUTIONS & ECONOMIC LINKAGES 62

ACTION PLAN IMPLEMENTATION

65

13.1

POLICY ISSUES

65

ECONOMIC IMPACT OF TOURISM

71

MARKETING STRAGEGY AND ACTION PLAN

89

CONSULATES IN PREPARATION OF REPORT AND

WORKSHOP PARTICIPANTS

101

APPENDIX

1. INTRODUCTION
The Indicative Tourism Master Plan for Zanzibar has been prepared to assist the
Government of Zanzibar to assess the evolving tourism industry on the islands
of Unguja and Pemba and to provide guidance in the development of tourism
activities for the forthcoming ten years from 2003 to 2013. The purpose of this
indicative plan has been to appraise where the tourism industry stands in the
year 2002 and evaluate in what direction it will develop if the existing
circumstances prevail. The plan takes into account the desires of government
and stakeholders, the institutional structure, the environmental constrains and
cultural diversity of the islands. It makes recommendations for interventions
and cultural diversity for sustainable tourism development which will result in
long-term benefits for Zanzibar and its inhabitants.
Zanzibar has suffered in recent years as a result of political problems and the
subsequent withdrawal of various donors funding. This has had a direct result
on the developing tourism industry especially in the areas of improving training
opportunities for local people, infrastructure, development planning and
environmental protection. Zanzibar is clearly not achieving the high quality
tourism investments it seeks, and if it wishes to achieve its planned objectives,
fundamental changes must take place and tourism development planning must
be placed at the top of the political agenda. Unfortunately the type of tourism
Zanzibar attracts at the moment is to a greater extent of low quality but with a
high environmental impact. This plan seeks to reverse that trend and create a
solid foundation for Zanzibars tourism industry.
In itself this indicative plan cannot be all encompassing, but it does make
recommendations as to where further inputs and evaluations are required in
order that the objectives of the plan can be achieved. A number of the
recommendations made in this plan are not directly tourism related, but are
essential components in developing a sustainable tourism industry in Zanzibar.
Outlined in the plan are recommended actions to put in place new infrastructure
and to repair and upgrade existing infrastructure which not only serves the
tourist industry directly, but is essential to maintaining the islands
environmental quality, improving the quality of daily life for islanders and
assisting with development of other economic activities besides tourism. It is
therefore anticipated that this plan will help other donor organizations to
identify and prioritise their investment programmes over the coming years.

2. EXECUTIVE SUMMARY
Zanzibar receives in the region of 80,000+ foreign tourists annually and this
accounts for approximately 15% of GDP. In 2001 Zanzibar earned approximately
$46 million in foreign exchange earnings from international tourism. Tourism is
one of the principal industries that underpin the Zanzibar economy.
However, the quality of tourism Zanzibar receives does not meet that expected
by the Government who wish to promote Zanzibar as an up-market destination
to compete with other island destinations in the Indian Ocean region.
Unfortunately, the current trend for tourism development is based on low
quality, low spending clients, with some notable exceptions e.g. blue Bay Hotel
and Breezes Beach Club. If Zanzibar is to maximize its tourism resources and
avoid the boom bust syndrome associated with low quality and mass tourism,
then it must take the necessary decisions and actions to reverse this current
trend.
Many of the problems can be attributed to weaknesses in the planning system
and through poor land leasing decisions and management. This has been
instrumental in the proliferation of low quality enterprises that cater for the
lower end of the tourism market. If Zanzibar is to raise its standards then the
planning system that governs tourist zones and reform of the land lease system
will be required.
A major drawback to attracting quality development is the poor quality of
infrastructure that serves the tourist zones. High investment is needed in
developing and improving roads, waste disposal systems, potable water systems,
electricity supply etc. Resources required for completion of all work for islands
is not available therefore there is a need to plan and programme new
development in selected areas in order that high standards can be met. The
Northern and South Eastern Tourist Zones in Unguja and Northern and Western
Zones in Pemba will take Priority.
A more proactive approach to planning and attracting investment must be taken
rather than waiting for investors to approach, ZIPA and other Government
agencies must be more active in seeking Zanzibari, Tanzanian and international
investors who are able and willing to invest in tourism development of the
highest international standard, improved master planning and creation of a land
bank will greatly assist in this approach.
Co-operation and a working relationship needs to be nurtured between the
public and private sectors in the areas of marketing and training and an
appropriate method of improving dialogue between the stakeholder groups

must be developed in order that problems can be aired and dealt with in an
efficient manner. The formation of a Zanzibar Hotel and Tourism Association
and the establishment of a Tourism Advisory Board are two mechanisms that
need to be established as a priority.
In order to meet the needs of a growing tourism industry that is able to provide a
quality service, there is a need to train local people in all areas of hotel and
tourism service management. Investment in training both formally and on the
job will be required to maintain high standards and provide employment
opportunities especially to young Zanzibaris.
Maintaining environmental integrity is important for the long-term sustainability
of tourism. This concerns many wide-ranging issues and actions that have a
negative impact on the environment as a whole. Most important is the
maintenance of high environmental quality in the coastal zone. Many people
earn their livelihoods from the marine resources. Competition is high and the
need for an Integrated Coastal Zone Management Plan based on public and
stakeholder participation for Unguja and Pemba should be placed high on the
agenda.
The impact of tourism on the Zanzibari culture is a concern that has been
expressed by many and none more so than its impact in Stone Town. Social
impact can be managed successfully but actions and guides need to be put in
place through the determination of limits of acceptable change and carrying
capacity. Stone Town is the jewel in Zanzibars crown and central to its tourism
industry. Further study is required in order that the limits of change can be
determined.
It has been widely recognized that the development of tourism on Pemba
requires an ecotourism approach which is sensitive to the social and
environmental conditions that prevail. This plan must be developed through a
public participation process in order to ensure that the local island population
has a say in where, how and when development should take place, and ensure
that local people have the opportunity to reap the benefit of tourism and ensure
the unique land and marine environment is not compromised.
An action plan is required to implement the recommendations made in the
tourism plan. There is a need for priority actions to be determined in order to
achieve the goal of developing a high quality and sustainable industry which
benefits the Zanzibar people as a whole. The local economic situation dictates
that a number of these actions cannot be undertaken with the limited resources
available and therefore there will be a need to approach various donors for
assistance.

The priority actions for the years 2003-2005 are outlined in the table below.
Table 1
Summary of Recommended Priority Actions 2003-2005.
Programme
Improving Knowledge and Know How
Attracting Investment Capital

Improving Service Standards

Improving Infrastructure

Improving Access

Improving the Product

Actions
Tourism Satellite Accounts
Statistical database
Overhaul tourism tax and fee regime
for tourism sector
Review land leasing regulations
Create Land Bank and promote sites
to investors
Review existing non active leases and
withdraw sites as required.
Increase promotion activities.
Establish Tourism Training Advisory
Committee.
Formulate manpower training policy
plan
Scholarships for young Zanzibaris
entering hotel management
Hotel and tourism management
training
Customer care training for police
officers
customs and immigration officials
Training courses for tour guides
Upgrading and expansion of HTTC
Train the trainer programmes started
Initiate public awareness campaigns
Develop integrated solid waste
disposal plans
Seek investment for solid waste
disposal facilities.
Improvements to Zanzibar Airport
Improvements to Zanzibar Port
facilities for tourism traffic
Adopt Tourism Policy Statement
Provide resources and increase
institutional
capacity
of
development planning
Complete planning schemes for

Tourism development Pemba

Environmental Protection

Creating Greater Market Awareness

Strengthening
Institutions
Economic Linkages

and

Cultural Awareness

Improving Security

Developing
Sectors

linkages

with

Other

tourist zones
Direct infrastructure development
to selected zones.
Introduce completion bonds for
land leases
Remove low grade developments
Introduce
accommodation
development fund
Eco-tourism Plan for Pemba
Strengthen
planning
and
environment units
Develop whole island (Unguja and
Pemba) Coastal Zone Management
Plans.
Provision of fisheries protection
vessels.
Provide permanent anchor buoys in
sensitive areas
Protection of marine species.
Formulate marketing strategy
Revising and updating web based
advertising.
Establish Zanzibar Hotel and
Tourism Association
Establish Tourism Advisory Board
Undertake carrying capacity study
for Stone Town.
Improvements to interpretation and
information at cultural sites
Develop
closer
working
relationship between Commission
for Tourism and Ministry of
Education Museums and Archives
Increase police presence in Stone
Town and at air and sea ports
Identify and promote links between
tourism and other economic sectors
Promote local products to tourists

3. TOURISMS ECONOMIC SIGNIFICANCE

The economic impact of tourism is commonly measured in terms of its
contribution to Gross Domestic Product, foreign exchange earnings, employment
and government revenues. Tourism also has the potential to forge strong
linkages with other economic sectors and to bring substantial economic benefits
to local communities.
Accurate measurement of these factors requires
sophisticated techniques and data that are still being developed by the
Commission for Tourism and the Department of Statistics as part of the overall
Tanzania Tourism Sector Survey.
Currently, there are no official estimates of the tourism contribution to
Zanzibars GDP. Indeed, the tourism sector, which is assumed to be largely
embedded within the Wholesale and Retail Trade and Restaurants and Hotels
sub-sector, is not yet separately identified in the system of national accounts used
in Zanzibar and the mainland. Among the difficulties are that tourism-related
activities are to be found in other sectors such as transport and commerce as well
as the hotels and restaurants sub-sector (which is often assumed to be
coterminous with the tourism sector), and that the goods and services provided
by tourism establishments are consumed by local residents as well as
international and domestic tourists.
To overcome these difficulties, the recommended practice adopted in other
countries (and being implemented in Tanzania) is to establish a satellite account
for the tourism sector within the system of national accounts. At present, two
surveys are in progress one a Visitor Exit Survey and the other a Survey of
Tourism Establishments which will lead to the provision of improved data on
the economic significance of tourism In Zanzibar. These surveys are being
carried out under the supervision of a Working Group comprising
representatives from the Ministry of Natural Resources and Tourism, the Bank of
Tanzania, the National Bureau of Statistics, the Immigration Department and the
Zanzibar Commission for Tourism.
The estimates that follow are based on available data and should be regarded as
preliminary and subject to revision once more detailed analyses are completed.
Further details are given in Appendix A.
Contribution to GDP
Tourism already makes a significant contribution to the economy of Zanzibar. It
is provisionally estimated that the sector accounted for about 14% of GDP in

2001, compared with 12% for Tanzania as a whole. This contribution is projected
to increase to around 21% by 2012.
Foreign Exchange Earnings
According to the preliminary results of the International Visitor Exit Survey
(carried out over the period July 30-September 15,2001), Zanzibar earned some
$46 million from the spending of International tourists in 2001. To this must be
added an allowance for the spending of tourists traveling to Zanzibar on internal
flights (who are not presently covered by the official statistics). This raises total
visitor expenditure to $55 million in 2001.
Allowing for the imports from foreign countries that are utilized by the tourism
sector, net foreign exchange earnings from tourism are estimated at $46 million
in 2001. This figure is projected to increase to some $116 million by 2012.
Even allowing for leakages on imports, it is clear that tourism is a most
important sources of foreign exchange, and helps considerably to offset the trade
deficit which widened from $51 million in 1997 to $86 million in 2000, reducing
to an estimated $50 million in 2001.
Contribution to Employment
While there exists no official data on the employment generated by the tourism
sector, it is estimated that currently some 5,800 persons are directly employed by
the tourism industry in Zanzibar, of whom approximately 4,400 persons (76%)
are employed in the hotel/guest houses sub-sector. The remainder is employed
in tourist restaurants, tourist shops, ground tour operators, airlines (state-owned
and private), the Commission for Tourism and other tourism-related government
departments or as tour guides.
In addition to those directly employed in the tourism sector, there are many
more-perhaps, as many again, who derive part or all of their employment from
supplying goods or services to hotels, restaurants, etc, or who otherwise benefit
from the spending of persons who are directly or indirectly employed in tourism.
Thus, total tourism-generated employment in Zanzibar could presently be in the
order of 37,000 jobs or full-time job equivalents. This number should further
increase to around 48,000 jobs by 2021, if, as is hoped, the tourism sector returns
to a path of sustained growth. Indeed, Zanzibar Vision 2020 envisages that as
much as 50% of all jobs in the modern sector could be provided in tourism and
the free zones by 2020.

Contribution to Government Revenues

The tourism sector makes a substantial contribution to government revenues
through the wide range of fees, licenses and taxes levied on the sector. While
precise figures are not yet available, it is estimated that for 2001 receipts from the
tourism sector amounted to some Tsh. 8 billion, representing almost one-fifth of
total government revenues in that year. By 2012, this contribution could increase
to Tshs 21 billion. A strong case can be made for returning a certain fixed
percentage of these revenues to the ZCT for tourism development and
promotion.
Investment
Since the mid-1980s, a total of some $57 million has been invested in hotel and
tourism projects facilities by the Zanzibar Investment Promotion Agency (ZIPA),
plus a further $6.6 million in 214 smaller tourism projects facilitated by the
Commission for Tourism.

4. TOURISM IN ZANZIBAR TODAY

4.1

STRUCTURE OF THE TOURISM SECTOR

Despite its considerable potential, the tourism industry in Zanzibar is relatively

small, as shown in Table 2.
Table 2 Structure of the Tourism Sector 2002
Category

Units

Total Rooms

Hotels/Guest
Houses
Restaurants**
Tour Operators
Tour Guides

173

3,089

40
128
325

International
Standard*
About 1,200
19

* Mainly used by international tourists

**International standard outside of hotels
Source: Commission for Tourism
According to figures compiled by the Commission for Tourism, there are
currently 173 tourist accommodation establishments in Zanzibar, with a total of
3,089 rooms and 6,159 beds. The great majority are located in Unguja, with only
14 establishments (with a total of 110 rooms and 214 beds) in Pemba.
In 1998, less than one-fifth of all beds were in 4 or 5 star properties, and a further
one fifth in 3 star properties. Most properties (123 out of 173), and 37% of all
beds in 1998,are in unclassified establishments. This implies that the bulk of
tourism accommodation-probably as much as 60% of the total is suitable
mainly for budget travelers or backpackers. This does not conform with the
stated wish to develop Zanzibar as an up-market destination.
There has been relatively little new investment in the accommodation sector in
recent years and, notwithstanding the large number of projects that have been
approved by ZIPA, only one major project (which will add another 400 rooms by
2004 and a further 200 rooms in a second phase), is presently under construction.
Outside the hotels, there are approximately twenty restaurants of international
standard, with several new high quality establishments opened in Stone Town in
the past few years.

In addition, there are 128 licensed ground tour operators, of whom

approximately half were at one time members of the now defunct Zanzibar
Association of Tour Operators. Despite the large number of licensed operators,
this sector is dominated by a comparatively small number of major companies,
which account for the bulk of the business.
There are also a very large number of tour guides both official and unofficial.
Some 325 tour guides have been licensed by the Commission for Tourism, of
whom sixty or so are members of the newly-formed Zanzibar Tourist Guides
Association (ZTGA). In addition, there are others acting unofficially, or posing
as, tour guides, some of whom appear to have come into possession of official
tour guide identification badges.
In order to get a more complete picture of the present structure of the tourism
sector in Zanzibar other category sectors should be added, such as dive
operators, scheduled and charter airlines, tourist shops, taxi drivers and others
who derive part or all of their incomes from tourism.
INSTITUTIONS

4.2

The following institutions are presently involved in Zanzibar tourism:

Public Sector

Ministry of Trade, Industry, Marketing and Tourism

The Ministry is responsible for tourism policy and governs the
Commission for Tourism as the executing agent.

Ministry of Communications and Transport-Department of Aviation

The Ministry is responsible for the management of the Zanzibar
International Airport

Zanzibar Ports Corporation

The government corporation took over the Zanzibar ports in 1997. the
Board of Directors of the corporation is made up of active government
officials, retired civil servants and retired national forces officers

Zanzibar Commission for Tourism

This organization has been responsible for tourism since 1996. Headed by
an Executive Chairman, and Executive Secretary, a Director for Planning
and Administration and a Director for Marketing and Promotion- all four
positions are appointed by the President. The ZCT in Unguja has 61 staff

plus 19 staff in the Pemba office. The ZCT has two information offices-one
at the harbour and one at the airport.

Zanzibar Hotel Tourism Training Centre

Established in 1992 with UNDP/ILO assistance and has a staff of 56,
which includes 11 Instructors. The principal reports to ZCT.

Zanzibar Tourist Corporation

The government owned corporation headed by a General Manager. It has
three small (eight roomed) budget class hotels in Pemba and a ground
tour operation which entails two old buses in Unguja.

Zanzibar Investment Promotion Agency

ZIPA has been controlled by the Ministry of Finance as a statutory body since
1991. It is headed by a Director General and has a total staff of around 60
persons. ZIPA acts as a one-stop-shop for foreign tourism investors, while ZCT
deals with local investors.
Private Sector Organisations

4.2

Zanzibar Association of Tour Operators

Formerly had 61 members but has not been active since 1997.
Zanzibar Tourist Guide Association
The ZTGA has 60 members and has been in existence since 2001. with
around 325 tourist guides recently licensed by ZCT, ZTGA lacks influence
in its field of work.
DEMAND CHARACTERISTICS.

Tourist Arrivals
According to statistics compiled by the Commission for Tourism, a total of
76,329 tourists visited Zanzibar in 2001, compared with 97,165 in 2000 a
decrease of 21%. The decrease was due partly to the adverse publicity
received by Zanzibar following the civil disturbances in January 2001 and
partly to the worldwide downturn in tourism following the events of 11th
September 2001.
In contrast, arrivals in Pemba (included in the overall total) increased from
4,290 in 2000 to 6,129 in 2001.
These figures exclude domestic tourists visiting Zanzibar from the mainland
as well as foreign tourists arriving in Zanzibar on internal air services. The

true number of tourists visiting Zanzibar could consequently be considerably

greater than the official statistics suggest.
Tourist arrivals and recent trends by main market area are shown in Table 3.
Table 3 Tourist arrivals by nationality 1995 2001

Europe Britain
1995
1996
1997
1998
1999
2000
2001

8,922
13,502
19,583
23,505
23,279
25,764
14,510

10,391
11,909
14,884
13,765
14,141
16,307
13,147

Other
Europe
18,882
23,669
26,471
25,152
24,939
29,368
25,738

Total
Europe
38,195
49,080
60,938
62,422
62,359
71,439
53,395

North
Other
America Africa

Rest of Total
World

4,804
5,682
7,603
7,699
6,745
7,757
6,328

6,736
8,009
9,932
10,041
11,447
9,251
9,106

6,680
6,388
8,022
6,293
6,367
8,718
7,500

56,415
69,159
86,495
86,455
86,918
97,165
76,329

Source: Commission for Tourism

Where do they come from?

Europeans accounted for 70% of total arrivals in 2001, with the remainder
divided between North America (8.3%), Africa (9.8%) and Rest of World (11.9%).
Within European, the main source markets are Italy and Britain, which together
accounted for 36% of total arrivals in 2001.
According to the international Visitor Survey, Italian accounted for 48 of the
people surveyed during the peak seasons, if representative of the visitor
population as a whole, would imply an over-dependence on this one market
during this season.
Purpose of visit
There exists no breakdown of arrivals by of visit but the great majority are
believed to be holiday/leisure visitors.
How do they come?
In 2001, some 53% of all tourists arrived by air and the remaining 47% be sea.
Cruiser ships made a total of 29 call with a total of 4,857 passengers, compared
with 42 calls and 9,949 passengers in 2000.

How long do they stay?

The average length of stay for all categories of visitors is estimated from the 2001
Visitor Exit Survey to be five nights (for the peak season only).
When do they come?
In 2000, 44% of all visitors came in the period July to October inclusive,
compared with only 13.5% in April June.
The peak months for the Italian visitors are July/August and December.
Because of the pronounced seasonality, and the fact that many properties close
for several months during the low season, average hotel room occupancies were
probably not much more than 40-45% in 2001. this contributes to lack of
profitability and lack of investment and highlights badly needed product
development and refurbishment.
How much do they spend?
The average daily expenditure was estimated at $120 per person for 2001 (based
on the International Exit Survey for the peak season). This figure may also need
to be revised when additional information becomes available.

ZANZIBARS MARKET PERMORMANCE

5.1

COMPETING DESTINATIONS

Compared with other destinations in eastern and southern Africa, Zanzibar

receives a very small market share. For example, in 1998 (according to WTO
statistics), Zanzibar received less than one-quarter of the number of persons who
visited Reunion, less than one-fifth of the visitors to mainland Tanzania and less
than one-sixth of visitors to Mauritius.
Details are shown in Table 4.
Table 4 International Tourist Arrivals in sub-Saharan Africa
(Selected destinations), 1998
Destination

South Africa
Zimbabwe
Kenya
Botswana
Mauritius
Namibia
Tanzania (incl. Zanzibar)
Reunion
Zambia
Swaziland
Uganda
Malawi
Seychelles
TOTAL
Zanzibar

International
arrivals,
Number (000)
5,981
1,600
951
740
558
560
447
377
362
325
238
205
128
12,344
(86)

Tourist 1998
% share
47
13
8
6
4
4
4
3
3
3
2
2
1
100
(0.7)

Source: World Tourism Organisation

The number of visitors to Zanzibar is also very small compared with competing
island destinations in Caribbean which, with in many cases a more limited
tourist product confined largely to beaches, enjoy high standards of living due
many to their highly developed tourist industries. For example, in 2001,
Barbados, with a population of around 300,000 attracted some 545,000 stay-over
tourists, and 533,000 cruise passengers, generating a total of US$ 700 million in
foreign exchange earnings.

Based on tour operator research, the structure of the European long-haul market
to sub-Saharan Africa is estimated to be
15% beach holidays only;
40% beach and safari
16% single destination safari/sightseeing
17% dual/multiple destination safari/sightseeing; and
12% soft adventure
As Zanzibar has neither a developed safari/wildlife product nor, apart from
Stone Town, a major sightseeing product, it is currently largely confined to
promotion of the beach and Stone Town product which, as is illustrated by the
market research findings, only one part of the experience demanded by visitors
to Eastern Africa. On the other hand both Unguja and pemba can capitalise on
the high percentage of travelers wishing to combine a beach destination with
their mainland safari by expanding the range of attractions and activities
available in Zanzibar.
5.2.1. MARKETING EXPENDITURE
While the Promotion of Tourism Act 1996, foresees under Part V Funds of the
Commission inter alia such sums equivalent to 35% collected by the Revenue
Board or any other collector from levy imposed under the Hotel Levy Act 1995 or
any substitute legislation (i.e. the 20% VAT) the Zanzibar Commission for
Tourism has received inadequate marketing and promotion funding since the
inception of the 1996 Act.
The proposed and approved marketing and promotion budget has only been
25% actually funded for the past three years as follows:
Table 5

Approved Marketing Budget 1999 2002

Year
1999/00
2000/01
2001/02
Total Tshs

Approved
505,000,000
441,637,000
288,578,000
1,235,215,000

Real Allocation
15,000,000
176,777,867,60
122,246,519,00
314,024,386,60

%
3%
40%
42%
25%

Source: Zanzibar Commission for Tourism

The approved Zanzibar ZCT marketing and Promotion Budget 2002/3

Table 6 Breakdown of Marketing and Promotion Budget 2002/3

Tshs
1. The internet (hosting, registration, 1,278.000
domain
name etc.)
2. Printing and publication of the
80,630,000
promotional material
3.
International
tourism
fairs 60,720,500
exhibitions
4. familiarization workshops and 16,488,000
seminars
5. Promotional workshops and 16,227,000
seminars
6. Journalists and mass media from 2,400,000
abroad
7. Radio and Television Programmes 374,400
8. Paid advertisements and public 5,000,000
relations
9. Promotion through sports and 12,600,000
events
10. Study tours and special training
2,400,000
11. Public merit (special incentives)
2,400,000
Total Tshs
200,517,900

@ 950 Tshs
1,345

%
(0.6%)

84,874

(40.2%)

63,916

(30.3%)

17,356

(8.2%)

17,082

(8.1%)

2,526

(1.2%)

394
5,263

(0.003%)
(2.5%)

13,263

(6.27%)

2,526
2,526
211,071

(1.3%)
(1.3.%)
(100%)

However, the ZCT expects to only receive about 40% to maximum 50% of the
budgeted amount, i.e. Tshs 80 to 100 million.
Promotional Material
While 40% of the 2002/2003 budget is allocated to promotional material, from
last years budget the following were produced:

Zanzibar The Ultimate Tropical Destination (2001), a 52 page brochure

designed and printed in Dar-Es-Salaam;
Zanzibar Accommodation Guide 2001 02, a 20 page coloured brochure
with fact file and listing hotels and guesthouses with current rates;
Zanzibar- Tours and Excursions Guide 2001 02, a 20 page coloured brochure
with fact file and listing the tour descriptions, tour operators and dive
operators;

Zanzibar- Food and Shopping Guide 2001 02, a 20 page coloured brochure,
with fact file, listing of shops and restaurants;
Zanzibar Travel and Trade Directory 2002, a 50 page colour brochure, with
fact file, Stone Town, events calendar, listings of hotels and guesthouses,
restaurants, tour operators and tourism related enterprises. About 50% of the
brochure is made up of advertisement;
Posters with scenes of Zanzibar, printed in Dar Es Salaam.
Annual calendar in Swahili

A review of the promotional material is as follows:

Print and photo quality not of international standard;

Dating (2001/02) and rates in brochures requires a reprint each year;
Repetition of contents in the different brochures;
Brochures too long and thus heavy for mailing and transport to trade fairs,
etc;
Poster images not attractive and of inferior quality;
Low stocks of all promotional material on hand;
Listing partly incorrect in relation to contact telephone numbers etc.

Trade Fair Participation

ZCT participates in the Tanzania stand, as does each private sector company, for
a contribution of US$ 1,800 per fair in the past and US$ 3,000 in the future. This
is due to the number of public sector participants at the trade fairs. The cost per
fair for the ZCT is in the region of US$ 8,000 to US$ 10,000.
5.3. EXPOSURE IN TOUR OPERATOR CATALOGUES AND WEBSITE
Tour Operator Catalogues
As per the tour operator survey (Market Demand Survey for Tanzania, August
2002) with programmes to east and central Africa destinations, the following
inclusion of destinations were found:

Table 7 Market Demand US Tour Operators

Destinations
Tanzania
Kenya
Malawi
Zambia

% of Operators
100
100
30
40

Destination
Zanzibar
Zimbabwe
Namibia
Uganda

% of Operators
60
50
50
40

Botswana
50
Mozambique
Madagascar
10
*dropped considerably since the year 2000

10

70% of the tour operators interviewed considered the tour programme

Serengeti/Ngorongoro and Zanzibar to be popular, whereas 20% found Kenya
Beach and Serengeti/Ngorongoro to be popular. While the US tour operators
sell Zanzibar, most of their market is not looking for beach holidays, instead they
are more interested in small and mid-scale character filled hotels in Stone Town.
Table 8 Market Demand European Tour Operators
Destinations
Tanzania
Kenya
Malawi
Zambia
Botswana
Madagascar
Ethiopia

% of Operators
84
79
39
45
55
8
12

Destinations
Zanzibar
Zimbabwe
Namibia
Uganda
Mozambique
Sudan
Indian
Ocean
Islands

% of Operators
76
57
51
39
20
5
5

69% of those tour operators interviewed found Serengeti/Ngorongoro and

Zanzibar to be popular programmes while 17% opted for Serengeti/Ngorongoro
and Kenya beach.
Italian Tour Operators
Zanzibar is extensively covered by Africa Explorer, Francorosso, Turisanda,
Africa safari club etc. in the Italian market. This is due to the direct charter
flights selling mainly beach holidays with optional safari trips to the mainland.
United Kingdom Tour Operators
Of the UK tour operators interviewed 12 included Tanzania while 11 had
Zanzibar in their catalogues. An estimated 43% of British holidaymakers book 2
week safari and beach combinations.
German Tour Operators
Tanzania is in 8 of the catalogues of interviewed tour operators, however,
Zanzibar is only available with a limited offer in some of the progremme, i.e.

TUI :
Meiers Weltreisen:

Northern Circuit Safari and Mombasa Beach

Northern Circuit Safari and Mombasa Beach

Airtours:
Northern Circuit safari and Zanzibar (Mnemba Island and
Serena Inn)
Best of Africa: Safaris and Zanzibar (Breezes, Bluebay, Sau Inn )
Reiseservice Africa: Safari, Kilimanjaro and Zanzibar (Serena Inn, Breezes,
Mnemba Island)
Studios:
Safari and Zanzibar (Breezes, Serena Inn)

French Tour Operators

From the tour operators surveyed 4 had Tanzania in their programme, while
2 included Zanzibar. An estimated 50% of French tourists book safari only.
The most popular combination is Kenya beach and Serengeti/Ngorongoro.

Swiss Tour Operators

Of the Swiss tour operators interviewed, 6 had both Tanzania and Zanzibar in
their catalogues, some 25% take 2 week beach holidays in Kenya, while 60%
book safari and beach combinations.

South African Tour Operators

Tanzania and Zanzibar are increasingly being included in tour operator
catalogues in the South African market, while Zanzibar as a beach destination
has to compete with other Indian Ocean island destinations.

Website Exposure
The ZCT website www.zanzibartourism.net covers 30 pages with the following
sub sections.
Travel Tips
Filling and Photo
Geography
Visitors Trend
Governance
Commission for Tourism
Short History
Alternative links
Getting to Zanzibar
Where to Stay
Tour Programmes
Events
Due to lack of funds the present website was developed locally in April 2000, it
has had, however, in the meantime 17.914 hits, i.e. an average of 20 per day. The
last update was on May 15, 2000.

The presentation format and content needs revision with regard to the visitor age
and sex groups data, tourist numbers for the past 10 years and per month. Tasks
and organigramme of the ZCT etc. is of no interest to the visitor. Four of the nine
alternative links are no longer in use. The sections on where to stay and tour
programmes offer no direct links. Pemba lacks sufficient coverage.

6. TOURIST ATTRACTIONS, ACCESS AND INFRASTRUCTURE

6.1. TOURIST ATTRACTIONS
Tour attractions, together with access, accommodation and other services, are the
main features that distinguish one tourist destination from another.
Visitors select a destination mainly because of its primary attractions i.e.
attractions that have significant appeal and drawing power. When they have
made their decision to come to Zanzibar, the objective should be to get visitors to
stay as long as possible and to encourage them to spend as much as possible
during their visit by providing a wide range of secondary attractions i.e.
additional things to do and see.
Because of its richly evocative name, Zanzibar already has a head start in the
minds of most travelers. This is augmented by its historical and cultural legacy,
tropical climate and idyllic beaches and islands.
The main primary and secondary attractions are further described and appraised
in the following paragraphs.
6.2. UNGUJA
Primary Attractions
Stone Town
Stone Town, with its wealth of historical buildings and traditional Swahili
culture, is Zanzibars key, unique attraction. The objective should be to make it
more attractive as a centre for tourism activity, both as a base of operations for
tourists staying at hotels and guest houses in the old town itself and as a place
for day visits by tourists staying elsewhere on the island or by cruise visitors.
This development must take place within carefully controlled environmental and
social limits.
Marine Environment
The tourist production, both on Unguja and Pemba, is further enhanced by a rich
marine environment characterized by coral reefs sutable for snorkeling and
diving, offshore islands and coral reefs, such as Changuu, Chumbe, Mnemba,
etc., big game fish, sea turtles and dolphins, sand beaches and extensive water
areas now used mostly for traditional fishing activities. The marine environment
can be sold either as a stand alone attraction or as an add on to safari/wildlife
vacations on the mainland or in other parts of East Africa. At the same time, if

not carefully managed, tourist activities in the marine areas can result in
overcrowding, pollution, environmental degradation and depletion of resources.
Also, the extensive, shallow flats at low tide, which expose sea grass and coral
patches, can limit the use of some beaches for swimming and may detract from
their value as a primary attraction.

Secondary Attraction
Spice Tours
At present, the available tours to spice plantations are of variable quality, and
depend on the degree of knowledge of the tour guide or taxi driver. If the guide
or driver is knowledgeable, the experience can be both enjoyable and
educational. Visits to the Agricultural Experiment Station could also be of
interest to visitors.
In come from spice tours can be augmented through the sale of spice gift
packages, especially if these are more attractively presented, and through the sale
of local food, fruit and vegetables with a simple outdoor area to eat.
Jozani Forest Reserve
Jozani Forest provides a habitat for the endemic red colobus monkey.
Additionally, the forest offers a diverse, visually interesting experience in the last
remnant of Ungujas native forest vegetation.
In order to attract more visitors and to satisfy their expectations, there must be a
reasonable chance of sighting the monkeys; a natural undisturbed forest
environment and improvements to the facilities. Jozani, and other reserves such
as Ngezi Forest on Pemba, can also attract conservation groups and professional
societies wishing to view endangered species or rare eco-systems.
Other Sites and Attractions
Other sites and attractions, which are often included in island tours and
excursions, include the ruins of Maruhubi Palace, the Mtoni Slave Chambers, the
ruins of Mtoni Palace, the Kidichi and Kizimbani Persian Baths and the
Mangapwani Slave Cave.
In general, these attractions are not well presented and in some cases are not
easily accessible. Improvements, both to the facilities themselves and to
information for visitors and general site appearance and access are needed to
make them more attractive for potential visitors.

Arts and Crafts

The best known and distinctive arts activity in Zanzibar is carving, especially
production of wooden chests and doors, which has now been expanded to
include picture frames, miniature door, chests, other furniture and brass,
copperware and jewellery. An indigenous form of Tinga Tinga art is a available
along with Makonde Carving sold in the street markets and shops of Stone
Town.
There is a need to encourage the production of high quality and more diverse
handicrafts and to provide improved marketing and sales outlets. Local
products should be marketed through value-added approaches. For example,
attractive packaging that draws the buyers attention to the fact the product is
locally made or grown. Local vending provides a range of opportunities for local
people to become involved and benefit from tourism. However, control is
needed to stop cheaper import of craft products becoming available and
competing unfairly with craft workers. Schemes exists in other countries where
crafts are sold on behalf of local people by tourist establishments with the
proceeds going direct to the maker. Notably the backpacker market generally
tends to put a low value on craft products, whilst the mid and upper markets
places a fair and equitable value on local crafts.
Village-based Activities
More opportunities need to be created for tourists to view or experience
traditional ways of life and economic activities through community visits, boat
and bicycle tours etc. this should be done through community- based
organizations.
6.3. PEMBA
Tourism on Pemba is undeveloped due to lack of accommodation facilities,
infrastructure and other services for visitors. On the other hand, Pemba has
good potential for special interests such as diving, deep sea fishing and as an ecotourism destination for discerning visitors.
Primary Attractions
Marine environment
Pemba, especially the western side of the island facing the Pemba Channel, is
very rich in coastal resources, and already has an international reputation as a
centre for diving and deep sea fishing.
Pemba also has a number of fine, sandy beaches, especially in the northern part
of the island e.g. Vumawimbi, Verani, Kiuyu, which have already attracted
interest from potential investors.

Misali Island
Situated west of Chake Chake, Misali Island is surrounded by a coral reef and is
a popular place for swimming, snorkeling and diving. It is also much used by
local fishermen, development is being controlled under the Misali Island
Conservation Project.
Secondary Attractions
Ngezi Forest reserve
Ngezi is protected area encircled on three sides by the Pemba Channel and
related waterways. The forest has considerable appeal for special interest nature
tourists due to diverse and rare botanical species and the presence of colobus
monkeys, fruit bats, antelope, wild pigs and a wide variety of birds. A number
of tourism developments have been proposed at or close to Ngezi but there are
major unresolved issues with regard to possible encroachment into the forest
area and displacement of local fishermen. As with Jozani, improvements to
facilities are also required.
Pemba Essential Oil factory
Located at Chake Chake, the factory offers visits to view the distilling process
and also to the fields where many of the raw ingredients such as lemon grass and
eucalyptus are grown. Development of a small interpretation centre and shop
selling the factories products would enhance the experience.
Eco-tourism
Pemba has a more undulating landscape than unguja, and is more densely
vegetated with both natural forest and plantation. At present relatively
unknown, it can be developed as an attractive destination for eco-tourism,
including walking and trekking holidays cultural tourism, study groups, etc.,
especially for those who are prepared to put up with relatively basic conditions.
Spice Tours
Despite its position as the main producer of cloves and other spices, Pemba does
not at present offer any organized spice tours for visitors.
Cultural Sites
The islands contains a number of sites of cultural interest such as the ruins at
Pujini and Jambangome. However, there are no interpretation facilities at the
sites for tourists. There is a very small museum in Chake Chake, but this badly

needs investment and more exhibits to hold the interest of tourists for more than
a few minutes.
Multi Activity Trails
Pemba is particularly suitable for the development of trails for walking,
mountain bikes and horse riding because of its varied terrain. An opportunity
exists for the development of cultural trails linking sites and areas of interest.
Good interpretation facilities in the form of on route information boards,
interpretation centres and/or experienced local guides would be required to
achieve visitor satisfaction. The development of a network of well designed
trails should considered as part of the eco-tourism experience.
6.4. INFORMATION/INTERPRETATION CENTRES
Education and interpretation is central to informing the tourist about Zanzibar.
Opportunities exist both on Pemba and Unguja to develop a network of
interpretation centres based on the existing protected areas, museums, cultural
sites of specific interest such as the essential oil factory in Pemba etc. These
centres could be interlinked and provided the basis of an island tour which tells
the Zanzibar Story covering all aspects of the islands culture, history, nature,
marine life and industry. The centres would need to be of high quality and
include interactive displays.
6.5. CIRCUIT EXTENSIONS
With regard to Zanzibar there are a number of possible circuit extensions that
can be further developed and promoted:

North Circuit Safari, Zanzibar beach holiday and Stone Town Cultural
experience
Mainland Safari and Zanzibar Stone Town cultural experience
Zanzibar beach holiday and selous safari/Southern Circuit

Zanzibar has a competitive advantage vis--vis its Indian Ocean beach holiday
competitors in that it can offer and tour operators include in package tours:

Stone Town cultural experience

Safari tours to the mainland
Pemba Eco Tours and marine activities

In the past Kenya has successfully developed and promoted to its main
European markets its beach product (Mombasa et al) as a beach holiday
destination, with optional safari tours of 1 to 3 days.

6.6

ACCESS AND INFRASTRUCTURE

Zanzibar International Airport (ZNZ)

In 2001 despite the increased frequencies by Kenya Airways and other scheduled
airlines, international schedule and non-scheduled passenger traffic showed a
downward trend. Movements increased by + 6.3% to 1.795 in 2001, while
corresponding passenger traffic recorded a drop of 2.5% to 68.342 passengers in
2001, the decrease in non-scheduled services went down from 58.265 to 42.633
passengers in 2001 (- 26.8%). The latter being due many to cancelling of Italian
charters after the January 2001 troubles.
The domestic services passenger traffic decreased by 0.9% to 13.686 passengers
in 2001 by a total of 1.036 aircraft movements. The number of non-scheduled
services increased by + 3.1% to 12.421 movements with 77.224 passengers (+
17.4%).
The Zanzibar airport 2.462 in runway needs resurfacing, while B 767 and B 777
aircraft landings are presently designed as critical. There is no Instrument
Landing System (ILS) on hand. The appearance and very bad condition of the
arrival, departure, baggage handling etc. buildings and facilities give the visitor a
very negative first and last impression of Zanzibar. In November 2002 an x-ray
machine for security/baggage checks was introduced. Visas are issued upon
arrival but there is presently a problem with visas for Italians having to be preissue in Italy.
Planted Improvements:
The design process for extending the runway to 3.000m (c. US$ 2 million
investment) and resurfacing the existing runway (c. US$ 2.4 million) are expected
to be completed by the end of 2002, to go for tender early 2003 and to take one
year to complete (Word Bank).
The terminal building is now being designed so as to separate domestic and
international traffic and to plan for an overall upgrading. Implementation is
anticipated for 2003/04, subject to securing a loan to finance the project.

6.7

ZANZIBAR PRODUCT SWOT ANALYSIS

The competitive strengths and weaknesses of the product along with the
opportunities and possible threats are set out in the following SWOT analysis:

Table 9 Swot Analysis

Strengths

Opportunities

Zanzibar known name

Stone Town uniqueness and
cultural experience
Paradise Islands- Pemba etc
Extensive white sandy beaches
Variety marine activities
Friendliness of the Zanzibaris
Hotel stock variety Stone Town,
beach and eco resorts.

Infrastructure improvements
Institutional strengthening and
funding
Create
hotel
and
tourism
association
Improvements to sea and airports
Training staff improving service
standard
Product
and
activities
improvements

Weaknesses

Threats

Infrastructure roads, utilities,

garbage
State of sea and airport facilities
Private sector lack representation
ZCT lacks funding and effective
manpower resources
High taxation and fees etc.
Low occupancy levels affecting
viability
Ineffective security/policing
Short high season period

Over taxation threatening viability

Deteriorating product standard
Health and hygiene risks
Lack of funding and marketing
resources
Negative image Papazi, drugs,
Prostitution
Increase in rooms insufficient
airlift
Terrorism and global economic
slump

The Strengths

While Zanzibar is a worldwide known name a real image of the Zanzibar

product is however, mostly unknown.
The uniqueness and cultural offer of Stone Town is a considerable advantage
vis--vis other Indian Ocean Beach destinations;
The islands around Unguja and especially Pemba are still paradise islands
with their marine and eco environment;
All islands have extensive white sandy beaches and interesting marine life;
The friendliness of the Zanzibaris is a great asset;
A large variety of hotel types are available from quaint, attractive inns in
Stone Town to 3/4/5 star beach resorts.

The Weakness
The infrastructure is weak with mostly dirt roads to access beach resorts;
power cuts, water supply and telecommunication problems which need to be
urgently addressed not to mention the bad situation with regard to garbage
collection and disposal;
Both the harbour (ferry/cruise ship) and airport facilities are in a deplorable
condition and give a very negative impression;
The Tour Operator Association has not been functioning for some years and a
Hotel and Tourism Association has not been formed to date;
The ZCT is highly staffed (72 in Unguja and 18 in Pemba) and lacks funding
and resources to properly market and promote Zanzibar;
The tourism private sector complain of VAT at 20% and having too many
high taxes, fees, lease are only partly collected and paid up;
The high season is short and hotels in general have an occupancy level of
only 40% to 45% on average.
The Opportunities
To seek funding for infrastructure improvements to the benefit of Zanzibaris
and furthering tourism;
To strengthen the ZCT organization and properly fund is marketing and
promotion efforts. Furthermore, to create an Advisory Board of Directors
from both the public and private sectors;
The creation of a Hotel and Tourism Association with an effective executive
secretary to represent the private sector;
Create a working group with public and private sector participation for short
term improvements to be carried out at the harbour ferry port area and at the
airport. Furthermore, to plan for major improvements and the funding
thereof;

With the planned increase in room capacity (2002 2006: + c.1.000 rooms) to
establish and implement a sector training plan;
To improve the hotel product by allowing a period of tax/duty free
importation of material and equipment for upgrading the product and
creating new activities such as golf, etc.

The Threats
Over taxation and burdening with fees etc. will lead to uncompetitive pricing
and lessening of value for money spent and could have an effect on the future
viability of the tourism sector;
The health and hygiene risks such as Cholera (January 2001), Malaria, AIDS,
etc.
Possible recurrence of political and social unrest.
The lack of funding for ZCT marketing and promotion of Zanzibar in the
future together with over + 80% increase in 3 star of better room stock over
the coming 3 to 5 years, could lead to non-viable occupancy levels for many
properties;
The lack of enforcement of the law in view of drugs, prostitution and papazi
harassment could generate a negative image of the destination and effect the
holiday enjoyment of the visitor, not to mention the effect on word of mouth
negative promotion;
With the increase in room stock, sufficient airlift capacity and airport
improvements need to be planned;
Just as 11th September 2001 had an effect on Zanzibars tourism performance,
future terrorist attacks, the situation with regard to Iraq, a global economic
slump all threaten Zanzibaris tourism development. Through good PR and
marketing there is a need to develop and keep a positive image of Zanzibar in
the market place especially within its main markets.

7.
7.1

SERVICE STANDARDS, TRAINING NEEDS AND FACILITIES

IMPORTANCE OF TRAINING

As described in Section 3, the tourism sector already brings considerable

economic benefits to Zanzibar, and has the potential to make a far greater
contribution. Failure to invest adequate resource in the development of
standards of service in the sector can place these benefits in jeopardy and restrict
the growth potential of the industry, especially if a destination gets a reputation
for poor service.
Tour operator research carried out in 2001 found that a significant number of the
European tour operators surveyed felt the the service element in Tanzania was
not to a high enough standard to justify the price being charged. Tourism
industry personal often lack many of the essential skills needed to do their job to
the standard that is required if Tanzania is to compete successfully in the market
for international tourism.
These findings applied equally to the mainland and to Zanzibar, and should be
viewed by the main stakeholders as a wake-up call to address the area of
tourism training and education in an effective manner. This will require close cooperation between policymakers, training institutions and the industry, and the
development and implementation of assured funding mechanism to guarantee
the sustainability of the tourism training and education system.
7.2

PROFILE OF EMPLOYMENT

While there exists no official data on the employment generated by the tourism
sector, it is estimated that currently some 5,800 persons are directly employed by
the tourism industry in Zanzibar. Of these, approximately 4,400 (76%) are
employed in the hotel/guest houses sub-sector. The remainder are employed in
tourist restaurants, tourist shops, ground tour other tourism-related government
departments, or as authorized tour guides.
Table 10 Estimated Direct Employment in Tourism, 2002
Sub-Sector
Hotels/Guest Houses
Tourist restaurants and
shops
Tour guides
Ground tour operators
Airlines, dive operators,

Total staff
4,400
300

%
76.2
5.2

325
500
100

5.6
8.7
1.7

etc
Ministry/Commission
for Tourism/Parastatals
TOTAL

150

2.6

5,775

100

Source: Consultants estimates

-----------------------------------------------------------------------------------------European and United States Market Demand Survey for Tanzania, Final Report, August
2002

These estimates should be regarded as provisional pending the compilation of

more detailed information which is expected to become available as part of the
work that is being done to establish a Tourism Satellite Account for Tanzania
(mainland and Zanzibar).
7.3 TRAINING NEEDS
While no assessment has been made of the training needs of the tourism sector, it
is estimated that not more than one in ten of the workforce in the sector has
benefited from any formal training. There is serious training problem, both at
entry level and for existing staff within all parts of the industry.
For existing staff, some in house training is carried out ,but generally not on a
regular or planned basis to agreed criteria by professionally qualified trainers.
Based on the existing level of employment in the tourism sector and planned
new hotel developments, it is estimated that some 7,000 existing, additional or
replacement staff would need to receive training in the period 2003-12, of which
more than three-quarters would be from the accommodation sector.
There are four main categories of training needs that should be addressed in an
integrated tourism training programme. These are

Basic vocational training for new entrants to the tourism industry;

Improvement of craft and basic skills among existing staff;
Development of supervisory and management personnel especially in the
accommodation sector;
Further development of public awareness and tourism education
programmers
For those currently employed in the industry, the priority training areas
are:

training and retraining of existing managers;

development of supervisory skills for food production ,food and beverage
service, housekeeping and front office departments;
skill development for line staff- front office, kitchen, waiters \waitresses,
housekeepers, etc.;
retraining of existing staff to improve attitudes and customer relations;
tour guide training;
English and other foreign language skills;

Management Training
At present, there is no provision in Zanzibar, or Tanzania, as a whole, for
tourism management training to degree or diploma level. It remains unclear
whether or not provision will be made for management training at the Hotel
and Tourism Training Institute in Dar-es-Salaam. This facility has recently
moved to a new location and is being assisted in certain areas by the
Government of France.
An alternative would be to utilize the Utalii College in Nairobi as the East
African regional center of excellence for senior and middle management
tourism training. Courses are offered at both and certificated level. This
alternative would reduce the need for a dedicated senior management
tourism training facility in Zanzibar.
In addition, donor support should be sought for scholarships for young
Zanzibar to attend tourism management training courses in Utalii and other
recognized colleges,e.g. similar to those provided for mainlanders under the
recently-concluded Irish aid project.
In the longer term, the University of Dar es Salaam should develop a hotel
and tourism management module within their existing coursers This could be
combined with industry placement in Zanzibar, Tanzania and abroad.
Customs, Immigration and Police
Through their contact with tourists, Customs, Immigration and Police officers
can leave lasting positive or negative impressions on visitor. There is no
training being provided at present for Customs, Immigration or Police
officers .in the reception and/ or handling of tourists, or in the appreciation of
tourism, its national importance and their role in it. This needs to be provided
in conjunction with the establishment of a Tourism Police Unit.

Tour Guides
The Commission for Tourism is responsible for the licensing of tour guides.
However, apart from a short for approximately 30 tour guides provided at
HTTC as part of an UND/ILO project ,no stands or training requirements are
necessary to become an approved tour guide.

7.4 TOURISM TRAINING FACILITIES

Hotel and Tourism Training Center
The main tourism training institution is the Hotel and Tourism Training
Center which is located within the grounds of the former Maruhubi Hotel .It
comes under the direction of the Commission of Tourism.
The immediate objective of a UNDP/ILO project, which was implemented
over the period 1992-94,was the setting up of a self-reliant hotel and tourism
training center at Maruhubi capable of providing basic /medium level
technical skill to personnel entering the hotel and catering sector ,and
upgrading the skill of staff already employed in supervisory head of
department positions.
This programme was partially achieved through:
The installation of training equipment within remodeled premises;
The provision of training at basic/medium level for a group of
national trainers; and
The integration of training activities with a commercially operated and
financially autonomous training restaurant.
Other activities included assistance with a hotel classification for
Zanzibar; short three month courses for supervisors, managers and tour
guides; seminar for hotel and restaurant managers; assessment of the
capacity of the Commission for Tourism ; and study tours for Commission
for Tourism staff.
At present, following the termination of the UNDP/ILO project, courses
at/medium level are conducted in Housekeeping, Food and Beverage
Service, Food Production, and Front Office, but the output of 18 persons
per year for each course, i.e a total output of 72 persons, not all of whom
take up positions in the hotel and catering sector, is inadequate to meet

the needs of the industry. The nine months of training to certificate level,
including two month attachment, is also inadequate.
Other weakness at the HTTC include:

The instruction lack industry experience and would need to be

trained at diploma level were it intended to implement higher level
programmes.

The need to improve student social skills and proficiency in

English;

The library is inadequately stocked with supplementary training

materials, books and periodicals on the subjects covered in the
course:

The restaurant does not appear to be operating as a commercial

enterprise;

There is no computer or other equipment for Front Office training.

There are no hotel rooms for Housekeeping training, only a bed in

the laundry room and

The equipment originally provided under the UNDP/ILO project

now needs to be replaced.

Clearly, training on the scale required cannot be implemented through the HTTC
or the vocational school (which can only provide basic training for certain trades
or crafts). For this reason, there will have to be a substantial degree of on the
job training. Otherwise staff will continue to be imported from the mainland and
further a field, and hotels will be tempted to poach trained staff from one
another.
Private Training Establishments.
Such private tourism training establishments as exists in Zanzibar offer very
limited skills training in a classroom environment with no practical training or
suitable equipment. There is a need for better regulation of these institution by
the Commission in order to bring about improved standards. A rather different
case is the proposed new hotel development by Protea (with the involvement of
a local NGO), that may contain a hotel training facility, which should be
encouraged.

IMPROVING SERVICE STANDARDS

7.5

In order to improve service standards to meet international requirements, the

following actions are needed;

Secure sustainable source and level of funding for tourism training.

The head of the HTTC to be responsible for tourism training policy.

Establish a Tourism Training Advisory Committee made up of

representatives from the tourism industry, the educational sector and the
Ministry/Commission for Tourism;

Formulate a manpower training policy and plan;

Modernise, upgrade and re-equip the HTTC;

Implement an ongoing train- the trainers programmed;

Formalise and upgrade tour guide training; and

Provide a mechanism for tourism management training either at Utalii

college in Nairobi or through the Development of appropriate facilities in
Tanzania or Zanzibar.

Further details are given in section 13 (Action Programmes)

8.

ENABLING ENVIRONMENT

8.1 INSTITUTIONAL ARRANGEMENTS

Present Organizational Structure of Commission for Tourism
As the Promotion of Tourism Act 1996, published in the Government Gazette,
Vol. No. 5759 of September, 06, 1997, the composition of the ZCT is as shown
on Chart 1
Chart 1 Organisational Structure of Commission for Tourism
Ministry
TIM &Tourism

Zanzibar
Commission Tourism

Executive
Chairman

Executive Secretary

Pemba Office

Internal
Auditors

Director Planning &

Administration

Legal
Officer

Hotel Tourism
Training Centre

Director Marketing
& Promotion
PR & Information

Accounts
Marketing & Promotion
Planning Officers

Administration

Inspection & Licensing

Unit

Statistics & Research

The ZCT currently employs 80 persons which include 19 staff in the Pemba. As
per the promotion of Tourism Act 1996 the Executive Chairman, Executive
Secretary and the two Directors are appointed by President.
The Minister as per Part II, Section 4(2) may appoint a Tourism Advisory Board
whose functions, powers, tenure and terms shall be provided by the Minister by
way regulations for that purpose.
ZCT Operating Expenses
Although the Promotion of Tourism ct 1996 foresees in Part V, Section 27 (b)
such sums equivalent to 35% collected by the Revenue Board or any other
collectors from Hotel Levy Act 1995 or any substitute legislation (i..e 20% VAT)
the ZCT date does not receive this and is constrained by inadequate funding and
trained manpower resources.
Managerial, Manpower and Technical Capacity of ZCT
The qualified management of ZCT have constrained in their efforts over the past
years because of:

Being heavily staffed, lack qualified trained manpower, i.e under-trained;

Under-funding and having to rely on collected fees for licenses, permits

and approvals etc;

Being under-equipped, i.e, lacking PCs in the statistics, accounting etc,

units

Insufficient marketing and promotion funding resulting in lack of proper

collateral material et al.

Tourism Private Sector

Despite the fact that there are 3.089 rooms presently in Zanzibar and that it is
expected to reach 4.000 rooms or more by the year 2006, 128 group tour
operators, many tourist restaurants, dive operators, airlines, etc.- Zanzibar to
date does not have a much needed effectively functioning Hotel and Tourism
Association.
Despite the fact there are 3.089 rooms presently in Zanzibar and that it is
expected to reach 4.000 rooms or more by the year 2006, 128 group tour
operators, many tourist restaurants, dive operators, airlines, etc Zanzibar
Hotel and Tourism Association Founding Committee so as to get its

formation and selection of an Executive Secretary in Place for starting up

early 2003.
With a ZH and TA in place, the involvement of the private sector in a possible
ZCT Tourism Advisory Board and better co-operation for a more effective
marketing of the destination could then be aimed for.
8.2 LEGAL FRAMEWORK
For the tourism sector, enabling legislation and a regulatory framework are in
place, however, there is a great lack of compliance and control.
Legislation for the Zanzibar Commission for Tourism
The Promotion of Tourism Act 1996 establishes the functions of the ZCT, As
peer Part II Section (a) (r ) the aforementioned act:
a) To advise the Minister in matters related to tourism business and
submit report by the Commission on its implementation or at any time
when needed.
b) To Commission on its implementation or at any time when needed.
c) To issue licenses for tourism business.
d) To keep a record of those involved in tourism
e) To change, suspend, alter or cancel licenses issued in accordance with
this Act.
f) To classify and categorize institutions which carry on tourism
business.
g) To hear and investigate complaints related to tourism.
h) To supervise hotel and restaurant tariffs and taxes in tourism.
i) To inspect institution which carry on tourism business.
j) To protect areas allocated for tourism.
k) To plan and direct tourism in a manner which is in conformity with
the overall government development policy and strategies.
l) To promote Zanzibar as tourist destination.

m) To improve and upgrade tourism products so as to attract high

spending tourists.
n) To monitor tourist expenditure and to ensure that foreign exchange
earnings are appropriately collected and accounted for accordingly to
the laid down procedure.
o) To train manpower for all sub-sectors of tourism industry and of all
levels- basic, medium and high-class levels.
p) To assist potential investors and to facilitate tourism investment in
Zanzibar, through publications for investment procedures, guidelines,
organizing of investment seminars, workshops and helping investors
to obtain other requirements such as land and infrastructure.
q) To co-ordinate efforts of all institutions within the tourism industry
and between tourism and other sectors of the economy at all level
regional, national and international.
r) To educate the public on the importance of tourism to the national
economy and their role and responsibility in the development of
tourism.
The Act provide for the registration of all tourist businesses and the establishing
of conditions for registration and classification. The issuing of licenses to
persons and businesses involved in tourism is empowered to the ZCT.
Regulations for the Tourism Industry
There are a
number of elements of legislation, which have an impact on
tourism and other sectors in general. These include laws in such areas as
taxation, customs, immigrations, transport, public safety, health, environment,
planning etc., and are in these fields of legislation the responsibility of the
relevant Ministries.
Potential Forthcoming Institutional Changes
A new investment policy is to be put before parliament in 2003 that may result in
the incorporation of ZTC and ZIPA into a new agency. This new agency will be
responsible both for tourism promotion and investment and therefore potentially
has the capacity to improve tourism planning (physical, marketing, design etc) as
a whole.

8.3 ENVIRONMENT FOR ENTERPRISE DEVELOPMENT

The tourism industry complains of the large number and high rate of taxes,
licenses and fees imposed on hotels and other operators, and the industry
maintains that this is contributing to higher prices and lack of value for money
spent when compared to competing destinations.
It is a fact that the tourism sector is faced with an extensive array of VAT,
corporate taxes, diverse licenses, fees and contributions etc., when have and
effect on cost levels and viability of the operations.
Under normal circumstances, such an onerous fiscal regime would represent a
considerable disadvantage to investment. However, its effect is probably offset
to some degree by certain inefficiencies in tax revenue collection. It is possible
that, with better collection methods, the number and rates of taxes could be
reduced while at the same time increasing the tax revenue yield. As part of the
overhaul of the tax system ,all tourism enterprises over a certain size should be
required to submit audited accounts to the Revenue Authority. Prepared by
reputable auditors according to international accounting standards.
Furthermore, there is no availability of long term financing; interest changes are
very high .There are no mechanisms to support local entrepreneurs along with
inadequate investment incentives and non-compliance with promised
Government infrastructure support.

9.

DEVELOPMENT POLICY GUIDELINES

9.1 THE FUTURE CHARACTER OF TOURISM IN ZANZIBAR

Tourism in Zanzibar is characterizes by a surfeit of low quality backpacker
type accommodation that falls below international standards. Analysis of the
current situation indicates that, of the one hundred and seventy one
developments operating on Unguja Island, 75% (123no) have not been given
grades by the Commission for Tourism and only ten properties fall within the
or five star category.(Chart2).
The un adopted Tourism Policy Statement (1997)produced by Commission
For Tourism state that tourism should be culturally and environmentally
sensitive and based on fewer high spending tourists. Services provided
should be of the highest quality and mass tourism should be rejected. This
view has been widely supported in discussions with various players in the
public and private sectors. Historically this assertion has been supported by
the Investment Protection Act 1989 which set out to limit the lower levels of
investment ,thereby encouraging quality development.
Chart 2 Tourism Accommodations by Grades on Unguja Island

4 star
3%
3 star
2%

5 star
3%

2 star
13%
1 star
7%

No Grade
72%

Tourist Development on Unguja Island is advanced in terms of the number of

developments when compared to Pemba Island. This can be attributed to a

number of factors including, a higher proportion and distribution of good

beaches. Access from the mainland is relatively superior, the internal
infrastructure and services are comparatively better organised and distributed.
Unguja Island is commonly called Zanzibar and hence is well recognized.
Stone Town itself is an internationally known attraction, thus the tourism
product for Unguja will be directed towards traditional sun/sea/sand holidays
in the tourism zones and cultural experiences in Stone Town.
In comparison to Unguja, traditional tourism development opportunities on
Pemba Island are limited by the relative lack of available beaches. The island
and its islets however do have near pristine marine resources. Pemba Island is
becoming better known for diving activities and game fishing in the Pemba
Channel Land, Pemba contains a more diverse landscape than Unguja including
the unique Ngezi Equatorial Forest Reserve, Pemba does lend itself towards the
development of high quality tourism based on ecological principles 9eco
tourism) based around its unique natural and cultural resources. Thus the future
direction of tourism for Pemba should be based on.

High quality eco- lodge experiences

Scuba diving
Deep sea fishing
Boating/island hopping
Special interests such as bird watching
Cultural interests including Swahili language courses
Soft adventure such as walking and mountain bikes
Spice tours and essential oils.

Box 1 What is an Eco- Lodge?

An Eco Lodge
Conserves both the natural and cultural environment in which it is
located;
Has a minimal impact on the surrounding environment during the
construction stage;
Is integrated into its local natural and cultural context through the
use of local architectural style, colour, landscaping and material
use;
Obtains its water from sustainable sources and takes necessary
steps to reduce water consumption;
Handles and disposes of sewage and solid wastes using
biotechnology and other sustainable means;
Meets its energy needs through passive design and meets these
with modern technology for energy saving and greater
sustainability;
Works with the local community and provides opportunities for

9.2 TOURISM POLICY AND PLANNING ZANZIBAR

There I is no current tourism master plan for Zanzibar. A UNDP/World Tourism
Organization plan published in 1984 was not activated. A number of studies
have been undertaken on behalf of the Commission for Tourism and
Commission for Lands and Environment relating to both tourism infrastructure
and management and planning through the Zanzibar Integrated Land Use
Project.

Tourism Development Policy for Zanzibar is based of the following:

Tourism Zoning Plan (1996)

Zanzibar Vision 2020
Tourism Policy Statement (un-adopted)

The Tourism Zoning Plan was produced as part of the larger Zanzibar
Integrated lands and Environment Project and was supported by the Finish
International Development Agency (FINNIDA). The plan seeks to pride a
balanced and phased development strategy, accommodation types, planned bed
capacities and infrastructure constraints and requirements for each Tourism Area
(TA) were identifies. The second stage of the Zoning Plan was to implement
detailed planning schemes by identifying sites for development and undertaking
the necessary participatory consultations with local people. This has been
undertaken for four small areas. However, the abandonment of the project by
FINNIDA in 1996 has resulted in the project being suspended as the resources
required to fulfill the planning process were massively reduced. The withdrawal
of FINNIDA has had massive consequences on effective planning in Zanzibar
since the Government was unable to provide the additional funding from its
central budget. As a result, there is no effective planning control and this has
overwhelmingly contributed to the environmental degradation of the tourist
zones, the domination of low quality development and the ignoring of planning
guidelines in new developments. For example, the 30 metre building setback
from the sea high water mark has been ignored in many cases.
Zanzibar Vision 2002 is a principal document produced by the Government of
Zanzibar and sets out the sustainable development of resource and services until
2020. The Vision policy for tourism is set out as;
to develop (a) tourism industry which is culturally and socially responsible,
ecologically friendly; environmentally sustainable and economically viable; and

to promote Zanzibar as the destination for tourism in terms of historic cultures

and beach holidays.
The Tourism Policy Statement was production in 1997. It remains in draft from
and has not yet been adopted. The provides the broad scale policy for future
tourism development and recognizes and rejects boom or bust syndrome of
mass market destinations. Under the guidelines and objectives the policy
promotes:-Tourism which is compatible with the historic and cultural conditions of
Zanzibar
-The continuous upgrading of tourism services and product;
-Sustainable tourism based on ecological principles;
-Tourism must ultimately be under the control of local people;
-The industry must be part of a wider economic strategy and not the main or
single industry on which the Zanzibar economy is reliant.

Overall, the planning framework and policy for developing quality sustainable
tourism is in place. However, Zanzibar is not attracting the high quality
developments it wishes to have and low quality tourist developments
predominate. The reasons for this can, in part ,be attributed to the following
factors:

Since the tourism policy statement is un-adopted, there is no official

policy that states the level and quality of the tourism product that the
Government will accept, making it more difficult to resist low cost
developments;

The physical and environmental planning structure which is responsible

for forward planning and development control is under-resourced in
terms of equipment, transport and trained enforcement staff .Therefore
it is not an effective mechanisms;

The overall approach to securing investment for new tourism

development is a reactive process. Investors approach the Zanzibar
Investment Promotion Agency with proposals which are evaluated
under the inadequately resourced panning system, which results in
scattered development
imposing further strains on providing
infrastructure services;

The low leasing cost of land allows individuals and companies who do
not have the financial resources to build high quality constructions to
provide a low quality development some of which are abandoned before
completion;

The low leasing costs of land have resulted in land speculation locking
up from potential many of the beast beach sites suitable for high class
developments

Potential investors are put off protracted lease negotiations with local
people for compensation and the final cost of obtaining the land lease is
unknown;

Tourism Zones Unguja

The Tourism Zoning Plan(1996) identified nineteen tourism area (TA).The
majority of these are grouped to create for main Tourism Zones (Map 1):

North Zone

North East Zone and Mnemba

South East Zone

North West Zone

The Plan prioritized the North West Zone for development in the first
phase(1993-1998) because of its higher levels of infrastructure, close
proximity to Stone Town and the fact that the area was more socially
robust .In reality development has proceeded largely contrary to the
phasing plan and it is dispersed across the four zones. The infrastructure
serving all the areas is considered to be poor. Under the lease
agreements with investors. The Government of Zanzibar is obliged to
provide the necessary essential services such as serviced roads,
electricity, water and telecommunication to the development. However,
the unavailability of sufficient funds to undertake these obligations has
resulted in the greater part of cases of these services being either
inadequate or non-existent. As result:

The principal tourist zones in the North, North East and East are
not serviced with a surfaced road along their lengths. The
surfaces are rough and difficult to pas along after inclement
weather. The condition of the roads considerably increases the
time taken by tourist traffic to reach the airport, seaport and Stone
Town.

There is no full coverage of potable water supply. Many tourist

developments are relying on private boreholes or buying water
by tanker;

Collection and treatment of solid waste is virtually non-existent

outside of Stone Town. Waste is dealt with by disposing in legal
and illegal dumps and local incineration. The problem is massive
and is creating a number of effects;

Detracts from the image of the island. The problem is

especially bad in coastal communities such as Nungwi

It is a health hazard encouraging rats and feral dogs

Creating water pollution in ground water supplies

Creating beach and lagoon pollution

Fire hazard.

Electricity has generally a good coverage but is not always

reliable and further investment is required.

Stone Town
The Stone Town is an outstanding example of a Swahili coastal
trading town which retains its townscape and urban fabric virtually
intact and contains numerous interesting buildings and artifacts
which reflects the local culture. The Stone Town is inscribed on the
UNESCO World Heritage List and is subject to the Stone Town
conservation Master Plan 1994. However, the implementation of this
plan lacks both human and financial resources.
Concern has been expressed by the Stone Town Conservation and
Development Authority and other observers regarding the impact of
tourism both visually and to local cultural diversity. Traditional
shops and businesses are being replaced by tourism orientated
business such asa internet and gift shops. A myriad of garish signs
have appeared. Traffic problems are growing, especially around
Shangani, as tourist traffic increases, both the cultural and social
fabric of the town are considered by some to be under threat.
Undoubtedly Stone Town is Zanzibars chief attraction. It is
considered to be critical townscape in that it is irreplaceable. In
order to guide future development of tourism activities and Stone
Town to maintain its unique values it is considered essential that a

carrying capacity study is undertaken based on the limits of

acceptable change. The study will need to include such wide ranging
issues as environmental impacts, maintenance and upgrading of
infrastructure to meet modern demands, social and cultural impacts
of tourism and mitigation measures.
Tourism Zones Pemba
The Tourism Zoning Plan (1996) identified seven tourism areas (TA) for Pemba.
These are distributed around the coast of the main island. Two zones were
identified (Map 2);

North West Zone which includes the long sandy each side of
Ras Kigomasha.

West Zone at Wambaa beach.

The infrastructure in Pemba is less developed than Unguja. The condition of

roads in Pemba is generally very poor. The north-south central spinal route from
Konda in the north to Mkoani in the South of the island is being substantially
upgrade and the Chake Chake to airport route is considered to be in reasonable
condition. The remaining roads on the island, including those to the tourist
zones are very poor.
Electricity and water supplies are problematic with long cuts in service
experiences, often on a daily basis. The availability of supply to area outside of
the main of populations is limited.
9.3 SMALL OFFSHORE ISLANDS
There are numerous islands offshore from both Unguja and Pemba, COLE has
published a policy for the allocation and use of small islets. A number of islets
have been leased to private investors. This has been mainly problematic as a
result of conflict between fishermen and the investor (Mnemba) and poor
developments occurring well below expectation (Chapwani and Bawe).
There is a general policy not to allocate islands for development and it is
considered that this should be maintained until such time a detailed plan for the
islands is forthcoming and the institutional planning capacity can realistically
undertake this work.

9.4 ECO- TOURISM DEVELOPMENT

As indicated above, opportunities for eco-tourism development have been
identifies and indeed the development of eco-tourism activities in Zanzibar has
received support for a number of years, For Pemba, eco-tourism has been
suggested as the way the development of tourism activities should be
progressed. The consultants concur wholly this view. The World Tourism
Organization define Eco-tourism as:a form of nature tourism in which utmost consideration is given to conservation
of the environment, including biological diversity, wildlife and ecological
systems, with emphasis placed on educating tourists about the environment and
how to course it
The fundamental basis of eco-tourism is that it adds value rather than damages
the ecological and cultural base on which it is founded. It is developed within
the scope of local financial resources and as such, the activities must be
environmentally and culturally responsive.
They must directly benefit
conservation and or local people will consequently have an incentive for
conservation. Eco tourism must be self-sustaining within the context of the
natural and cultural habitats in which the activities take place.
Within Zanzibar as a whole, number of active eco-tourism initiatives have
already been developed, such as the conservation of Jozani Forest and protection
of the indigenous and rare red colobus monkey and other fauna, the award
winning Chumbe Island Coral park which has been designed and is operated on
eco-lodge principles and the Misali Island conservation Project which seeks to
empowers local people to maintain their local resources and uses tourism to
contribute to community development projects.
Planning for Eco- Tourism in Zanzibar
If eco-tourism is to be pursued as a tourism option, it will be necessary to plan
accordingly. Because tourism in Pemba is currently at a very low level, it will be
easier, for the Government to pursue the development of tourism as a whole
island approach and to encourage the local population to become involved in the
planning process.
There will need to be strict imposition of planning guidelines in order to protect
and conserve the natural environment both in terms of damage and exploitation
of the resources and visual impact. All tourist developments must be based on
eco-lodge principles and enforcement of any further construction of hotel
development that does not apply the eco principles will undermine the ecotourism product and reduce the desirability of the island as an eco-destination.

If the Pemba product can be developed along ecological principles it does have
the potential to evolve into a unique and internationally desirable tourists
experience. The development of a separate Eco-tourism Plan for Pemba is a
critical component and its development should based on the public participation
planning process. This plan should be fully integrated into the Tourism Master
Plan Zanzibar.
9.5 THE LAND LEASE PROBLEM
Under the law, all land is vested in the President of Zanzibar, Leases are agreed
with each investor on an individual basis but the maximum term normally
allowed is 49 years which is subject to review. Under the present system,
investors approach the Zanzibar Investment Promotion (ZIPA) with proposals
for developments. The investor may have already identified land or can request
assistance from ZIPA to find land. According to the Tourism Zoning Plan only
land inside the zones can be developed. However, since there is no detailed
planning the investor is required to enter a protracted process of identifying his
needs and negotiating compensation with local residents. The process is
therefore of a reactive nature responding to investors when they make an
approach. As such there can be no forward planning vision and the process is
wasteful in manpower and financial resources as over 60% of proposals fail to
materialize.
ZIPA have indicated the desire to provide a proactive service by offering
identified sites to potential investors .This would require the creation of land
bank where all negotiations and compensation agreements have been
determined. By adopting the proactive approach investors can be targeted who
are able to fulfil the requirement of providing high quality developments. A
master plan of each tourist zone can be developed which identifies the optimum
type and scale of development for each site and planning for provision of
infrastructure can be achieved. A present, neither COLE nor ZIPA have financial
resources to adopt this approach.
There are a number of serious problems relating to the lease of land that need to
be addressed:

Prime sites have been locked to investors through land speculation and
abandoned projects;

Payment for land leases are not always forthcoming from investors.
Revenue from leases is therefore unavailable for investment in
infrastructure .

On some of the prime beach sites, land grabs have been reported where
some local investors have bypassed the official process, constructed
developments and then requested rent agreements .

Sub-leasing contrary to the Investment Act is reported in prime locations,

especially for dive centers and restaurants. Thus, the Government are
losing large amounts of revenue which could be re-invested;

Under present regulations land leases can be withdrawn if no

development takes place. However, there is confusion as to what
constitutes a start, for example, clearing a site or erecting a boundary fence
should not be considered as making a start. A start should be determined
when the investor has substantially invested in the site such as the
erection of the main shell of the building .Agreeing to minor works as
starts plays directly into the hands of speculators.

9.6 RECOMMENDATIONS FOR ACTION

1. The Government of Zanzibar should present a clear statement as to the

type and level of tourism it wishes to attract and develop in Unguja and
Pemba and where the developments should be located.
2. The resources and institutional capacity of the planning and environment
section of the COLE must be strengthened enabling it to undertake its
forward planning role by re-establishing detailed planning in the
identified tourism zones through planning schemes as laid out in the 1955
Planning Act.
3. By the completion of the planning schemes for each area , the government
should negotiate and pay compensation to be local inhabitants concerned
for the land identified for tourist development .This land should then be
placed in a land bank of sites which can be offered to investors.
4. In order to maximize the limited monetary and institutional resources
improve planning and infrastructure services, a scheme of staged
development should be undertaken in the selected zones with a complete
moratorium place on all other development outside of the two priority
areas where coment has not been given.

Select Zones
Unguja Northern Tourist Zone and South East Tourist Zone (Map3)
Pemba North West Zone and West Zone (Map)4

For Unguja the priority for infrastructure should be to :

Upgrade and surface the road from Fukuchani to Nungwi

Provide clean potable water supply to Kendwa, Nungwi and Ras

Nungwi

For Pemba the priority for infrastructure should be to

Upgrade and surface the road from Konde to Ras Kigomasha and
Mgagadu to Wambaa beach

Provide clean potable water supply from ground water resources

Box Ngezi Forest Reserve Environmental Potection

Box Ngezi Forest Reserve Environmental Protection
In order to improve access to the Zone, the road from Konde will need
to be upgraded. The road pass through theNgezi Forest Reserve and
any upgrading work will create a serious impact on the forest.
In order to provide maximum protection and conservation value to the
Ngezi Forest Reserves, no development whatsoever should take place
within the boundary of the forest reserve. This must include
providing the necessary infrastructure or access to construct xxxx
development that is
located adjacent the reserve other than
improvements to the xxxxxx road to Ras Kigomasha.
Any
development which takes place within two hundred metres of the
Reserve should be subject to a stringent EIA in order to ascertain any
possible impacts on the reserve ecology. A buffer zone of one hundred
metres should be maintained between any construction whatsoever
and the boundary of the forest reserve.

5. All land which has been leased and upon which no development has
taken place should be reviewed. Much of this land is held by speculators, an
activity which is contrary to the Investment Act. Land upon which leases are
held and where either no work has taken place or work has been abandoned
should be taken back by the Government and placed into the land bank
outlined in 2 above.
5. A system of completion bonds should be imposed on all investors taking
out land leases. The purpose of the land lese will be to encourage
investors.
6. Land leases which remain inactive ie no substantial construction work has
taken place within a period of twenty-three months should be dissolved.
The Government should retain the completion bond and the returned to
the land bank thereby eliminating land activities.
7. Owners and managers who currently provide tourism services and or ungraded accommodation should be encouraged to develop and upgrade
their services or otherwise face the prospect of closure. The Commission
For Tourism should provide information through training sessions,
workshops, literature, personal visits and the media on what level of
service is expected and how it can be achieved. Consideration must be
given by the Government to providing incentives through tax breaks or
other means to encourage and enable owners to upgrade and meet the
criteria stated in the Government Policy Statement in paragraph I above.
8. Where it is considered feasible and in the wider interests of maintaining
high quality tourist developments, low grade accommodation should be
removed in favour of high quality developments and compensation
provided in accordance with Zanzibar law.
9. The disposal of solid waste on both Unguja and Pemba is a major problem
and health risk. Integrated waste disposal plans for both islands and
investment in modern equipment such as incinerators or crushers should
be decided. In all cases, disposal areas should be sealed to stop the
contamination of ground water sources from the leachate. This especially
important within the rag coral areas.

Box 3 Nungwi Fire- The case for Requiring Fire and Building Regulations.
The destruction and damage to eight hotels centers and restaurants at Nungwi during
September, 2002 has focused on the requirement of good planning and management
in the tourism industry in Zanzibar. Fortunately there was no loss of life as a result of
the incident. Had there been, this would have resulted in serious consequences for
the tourism industry.

Whilst the rapid spread of the fire can be put down to the action of the wind
the extensive damage would not have occurred had the area not been over
developed with building in extreme proximity, and had adequate fire or
building regulations been enforced during the construction or management of
the development.
As a matter of urgency the Government of Zanzibar should impose both
building and fire regulations set at international standards for the design,
layout and materials, used in the construction of all tourist buildings. Whilst
the use of organic local materials is both an attractive, cost effective and
often sustainable method of construction, the resistance of such materials,
unless striated with fire retardants is limited in the extreme, investigations
into the treatment of makuti and other natural building products with fire

9.7 TOURISM AND THE ENVIRONMENT

It is well known and appreciated that in order to develop and maintain a
tourism industry a high quality and relatively pristine environment is essential.
Overall, the environmental quality of Zanzibar may still be considered to be
high, but it is clear that environmental quality is being affected as a result of
deficiencies in infrastructure and planning services, and it can be foreseen that
this will accelerate as a result of an increasing population and as further
development in tourism and other industries takes place. Problems related to
environmental degradation include:

Lack of treatment and disposal facilities for both sewage and waste
water causing pollution of ground water and lagoon.

Lack of treatment and disposal facilities for solid waste causing

pollution of ground water and lagoon, untidy appearance, pest
problems etc.

Depletion of mineral resources for construction materials;

The unnecessary removal of trees and vegetation on hotel construction

sites;

Pressure on marine resources from leisure activities and competition

for fishing to supply hotels.
Wide covering environmental legislation is in place under the Environmental
Management for Sustainable Development Act 1996. This legislation provides
for environmental impact assessment, protected areas and biological diversity,

disposal of hazardous waste and the development of both a National

Environment Action Plan (NEAP) and Integrated Coastal Zone Management
Plan, both of which are considered essential for long term environmental
management and stability. Both of these plans for Unguja and Pemba should be
forthcoming and supported as a matter of urgency.
Coastal Zone Management
Tourism in Zanzibar is greatly dependent on the sustainable management of the
natural resources of its coastal zone and the maintenance of an attractive
appearance. Although further study is needed, evidence provided in aerial
photographs produced three decades ago and through a single study in 1993 4
indicates that the coastal zone of Unguja is being significantly changed and that
beach resources are decreasing. Problems in the coastal zone include:

Beach construction creating erosion problems. Under planning

guidelines, no construction should take place within 30 metres of
the high water mark. This guideline is persistently ignored.

Beach vegetation essential for erosion control is destroyed as

pressure fr beach space increases and construction continues.

The commercial fish stocks are considered to be under pressure.

For example, research into lobster has indicated that their numbers
are reducing and individual specimens getting smaller. Pressure
on the fisheries will continue to increase, especially since the
competition between tourists wanting fish and local people
increase. Illegal fishing methods are likely to remain a problem.

Fisheries protection is required especially in the Pemba Channel as

poaching from game fishing boats based in Kenya is a serious
problem and should be addressed.

The reefs are damaged as a result of non-availability of permanent

anchor buoys. This problem is considered to be serous around
Misali Island;

Turtles are protected by international conventions Green and

Hawksbill turtles are known to inhabit the waters, around Zanzibar
and there are a number of documented turtle nesting beaches, most
notably Misali island off Pemba, Mnemba Island off Unguja and
the beaches located opposite Mnemba on Unguja itself. There are
also thought to be further beaches around both main islands and
their islets that are frequented. The identification of new beach and
back beach sites for tourism development must take into account
the possibility of turtle breeding sites. Where sites are identified

these should be given the necessary protection to ensure their longterm protection.

Dolphin watching is an activity which is becoming increasingly

popular especially around the Kizimkazi area and local people
benefit from receiving funding for social projects though the fee
system. Dolphin (and whale) watching do provide Zanzibar with
an important tourist attraction. However it has been reported that
it is common to see group of beleaguered dolphins being chased by
boasts of tourists. Unfortunately this exploitation of the assets may
have long term implications for the dolphin population. If the
dolphins are to be properly protected and promoted as an ecotourism attraction then strict controls must be enforced to protect
them in the long term. These controls must be enforced throughout
Zanzibar and not only in the Kizimkazi area. The recent project
initiated by the Institute of Marine Biology (IMB) to study the
implications of tourism on the dolphin population should be given
full government support and its findings implemented. In the
interim period and until guidelines can be produced by the IMB the
stricter licensing of operators, a reduction in the number of boats
operating and operation of guidelines should be put into action.

The sale of shells and coral products around Unguja is rife. Their
sale is against both Zanzibar and international la. If Zanzibar is to
promote itself as green and encourage an environmentally aware
clientele, this practise must be stopped forthwith.

9.8 PROTECTED TERRESTRIAL AREAS

The existing protected forest areas of Ngezi and Jozani provide opportunities for
further development , especially in wildlife viewing and interpretation. Both
areas would benefit from becoming National Parks both in terms of promotion
and in attracting funding from outside sources for improving management
opportunities and education. Because the sites are relatively small and
ecologically sensitive, no tourist accommodation should be placed in or
immediately adjacent to the protected area including the beach.
9.9 CULTURAL SITES
Stone Town is the centerpiece of cultural heritage in Zanzibar, However, there
are a range of sites of historic importance scattered around both Unguja and
Pemba. Little exists in the way of resources to maintain these sites. Some of the
sites closer to Stone Town are well visited such as the slave caves and the coral
caves at Mangapwani. However, there is little in interpretive material to hold the
visitors interest.

The museums in Stone Town are well visited but investment is required to
maintain the collections and also introduce modern audio and interpretive
materials.
Investment in maintaining the sites to a high standard and the creation of
interpretation centers is required if the Zanzibar Story is to be told as sold as a
visitor attraction. A review of the management of the sites should be undertaken
and a development plan for the introduction of interpretive centers and materials
formulated. linking the islands culture, natural resources and Zanzibar life.
The responsibility for the cultural sites is held with the Department of Archives,
Museums and Antiquities within the Ministry of Education. Because of symbiotic
nature between cultural sites, museums and tourism, it is recommended that this
department be placed in the Commission of Tourism.

10. MARKET PRODUCT POTENTIAL AND GROWTH PROJECTIONS

Existing and Projected Visitor Numbers
In 2001, according to data compiled by the Commission for Tourism data,
Zanzibar received a total of some 76,000 foreign tourists. To this number must
be added an allowance for foreign visitors (including expatriates resident in
Tanzania) traveling to Zanzibar on internal flights (estimated at around
15,000 persons in 2001) and domestic visitors from the mainland (estimated at
around 30,000 persons) who are not at present included in the official visitor
arrival statistics. This gives an estimated total of about 121,000 tourist arrivals
in 2001, plus just under 5,000 cruise ship visitors.
Having fallen sharply in 2001, visitor numbers are expected to show a
substantial recovery in 2002. Thereafter, between 2003 and 2012, an average
target growth rate of around 6% per annum has been provisionally assumed
for most categories of visitors, with the exception of Italian visitors (for
whom, given their present dominance, a lower annual growth rate of a
round 3% has been assumed ) and of visitors from other European countries,
especially Germany and France, ( for whom, given their present low
numbers, somewhat higher growth targets have been adopted. Domestic
visitors (mainly business visitors) are also projected to grow relatively slowly.
On the basis of these assumptions, total tourist arrivals are provisionally
projected to reach 220,000 persons by 2012. Of this number, the great majority
are expected to be holiday/leisure visitors, with business visitors expected to
come mostly from mainland Tanzania.
The preliminary target projections for visitor numbers and bed-nights in 2012
are shown in Table 11. It should be noted that these are preliminary figures
which will be refined and perhaps revised in the light of the additional work
that is due to be carried out under the present EU programme during October
2002 on the formulation of a tourism marketing strategy and plan for
Zanzibar and the mainland.

Table 11
Preliminary Projections of Visitor Numbers and Bed-Nights, 2001-12
2001(000)
2012(000)
Purpose of Visit
Number
Estimated Number
Estimated
BedBedNights
Nights
Italy
14,510
101,570
22,000
154,000
Britain
78,882
28,000
196,000
Other Europe
13,147
128,690
53,000
318,000
Sub-total-Europe
309,142
103,000
668,000
North America
25,738
18,984
12,500
63,000
22,500
14,500
58,000
Other Africa
53,395
36,424
18,000
90,000
6,328
387,050
148,000
870,000
Rest of World
7,500
Total-international
of
tourist
9,106
76,329
Tourists on internal flights* 15,000
Domestic tourists*
30,000

75,000
60,000

30,000
42,000

180,000
126,000

Total tourists
Cruise passengers

522,000

220,000
15,000

1,185,000

121,329
4,857

*estimates
Source: Consultants estimates
Projection Bed - Nights
The projected growth rate in bed-nights for international tourists is higher than
the projected growth rate for tourists. This is because the average length of stay
is expected to increase from the current figure of around five nights to almost six
nights. This does not apply to domestic tourists (assumed to be mostly business
visitors) whose average length of stay tends to be much shorter.
The expansion and enhancement of the Zanzibar tourism product through the
development of new attractions and additional things to o see is expected to
encourage visitors to prolong the length of their stay.

Accommodation Required
Based on a projected demand of around 1.2 million bed-nights by 2012, the total
room requirements (assuming an average room occupancy rate of 60% and 1.7
persons per room) would be for around 3,200 rooms of which at least 2.500
would need to be international standard.
Of the estimated 2,500 international standard rooms required by 2012, some
rooms are currently available in 3-star or better properties that are operating to
acceptable or near acceptable international standards, and approximately 800
rooms are currently under construction, or planned to be provide in the next few
years.
The remaining 500 rooms that will be required by 2012 will involve a
combination of refurbishment from the existing stock of accommodation and the
construction of new rooms. The new room requirement, including the
replacement of the rooms lost at Nungwi and the provision of new up market
eco-lodges in Pemba is comparatively modest partly because of the
considerable unused capacity that presently exists to low average occupancy
rates, especially outside the high season. Alternatively, a temporary moratorium
on new hotel development could be considered in certain areas, to boost.
occupancy rates.

11. MASTER PLAN STRATEGY

Strategic Assumptions
The focus the indicative master plan strategy is to guide the development of the
tourism industry towards providing a high quality and competitive product that
is environmentally and economically sustainable for the long term of the people
of Zanzibar.
Thus:

The strategic task is to develop Zanzibar not only as an add on to safari

holidays taken on mainland Tanzania and Kenya but also as a holiday
destination its own right by developing the cultural and environmental
attributes of the islands.

The success of the tourism industry will be built on maintaining and

improving environmental quality. The present trends of environmental
degradation as a result of a lack coastal zone will need to be reversed the
long term future of tourism in Zanzibar may be bleak.

Zanzibars tourism is intrinsically licked to its cultural wealth through its

people, artifacts, historic and cultural associations and architecture.
Tourism can destroy the culture and richness through broad scale
agreements to the limits of acceptable change.

The infrastructure, which is used to service tourist areas and maintain

environmental quality, requires upgrading to meet expectations and
maintain a green profile for high quality trained staff.

To meet a growing number of tourists air access and associated facilities

will need to be improved and upgraded.

Security of tourists will remain a fundamental issue both terrorist attack

and on island robbery and assaults. Tourist safety must be given the
highest and on going priority and the necessary resources of policing
made available.

Strategy components
To improve Zanzibars tourism product and its competitive ness in the market
place the following strategy components must be instigated:Knowledge and Know How strategy
Planning for tourism is dependent on knowing who the client is and what they
are looking for. Knowing which market Zanzibar is in and who main operators
etc. Good databases and statistics are essential to make informed decisions.
Investment Strategy
It is the responsibility of the Zanzibar Government to provide an environment to
encourage investment in tourism development. This not only includes making
the necessary adjustments to tax and fiscal measure but also requires that a
proactive rather than a reactive approach to seeking be established.
Product Strategy
There is overall agreement that the tourism product requires improvement in
quality if it is to compete with other regional island sestina. In order to achieve
this there will need to be investment in the institutional resource of its planning
system, more effective management of the allocation of lease agreements
including withdrawal of leases where necessary and undertaking actions to
improve the existing stock of tourist facilities.
Infrastructure and Access Strategy
Investment in improving infrastructure roads, airport, and utilities is an important
component to improving the tourism product and the image of Zanzibar.
Environmental Protection Strategy
A tourism industry will only be successfully maintained if the environment is
conserved to a near pristine condition. Environmental pronominal protection
must be placed at the top of the political agenda and regulations, management
regimes and plans put in place to ensure environmental sustainability.
Priority should be given to coastal zone management and finding ways to
deal with the increasing pressures marine resources.

Cultural Awareness Strategy

Zanzibar is cultural rich and this serves to draw tourism. However, tourism can
and does have negative consequences for the island cultural which need to be
identified. Measures must be taken to minimize and manage the effects on local
communities and the islands cultural recourses through developing appropriate
management strategies based on limits of acceptable change.
Human Resources Strategy
The quality of the tourism product depends to a great extent on the quality of the trained
personnel available. The upgrading and expansions of the tourist industry will place
greater pressure on the available resources that the are, at present, unable to meet current
demands. High priority must be given to quality training both externally and on the job
in order to meet demand and provide employment opportunities for Zanzibar at all levels.
Security Awareness Strategy
There is a general concern regarding the safety of tourism whilst Zanzibar. There
is a need to plan and implement actions that provide increased physical
protection for tourist, for example, by increasing tourist police. International
security is a worldwide concern. Zanzibar must develop and public security
aweless programmers covering airlines, hotels, customs and immigration
departments and assure tourist of their safety.
Marketing and Communication Strategy
Marketing and communications are essential components of all tourism planning
and promotion. The marketing and Communication Strategy must:

Identify and define the target markets

Develop and promote the image of Zanzibar as a high quality green
island resort and culturally colorful destination.
Devise an economically effective means of conversing with and
influencing the target markets.
Improve the databases for information decision-making.
Capacity Building Strategy

In order to encourage and facilitate enterprise an effective intuitional

structure must be put in place, which includes building work relationship
with the private sector for the benefit of all stakeholder parties.
The main takes and responsibilities of implementing this strategy are:

Public and privet sector organizations and agencies which contribute

to the tourism industry ate organized and managed in the approved
manner,
Adequate funding is made available for agencies and organizations to
operate effectively,
Regulations and safeguards are in place.

12. ACTION PROGRAMMES

12.1 IMPROVING KNOWLEDGE AND KNOW HOW
Establish a Reliable and Comprehensive Tourism Statically Database
There is a need to establish a more reliable and comprehensive statistical
database for the tourism sector. The existing tourism statistic (including arrival
statistics, accommodation statistics, and visitor survey information are far from
satisfactory in teems of the data processing is done manually and no queerly or
annual tourism statistical are currently being produced.
The Commission for Tourism needs additional resources (including technical
assistance and computers) in order implement improved systems.
Management Information System
There is a need to establish a management net information system for the
tourism sector comprising (i) visitor arrival and other tourism statistics, (ii)
product details and (iii) market research information.
The system should be accessible to Commission for Tourism staff and other
subscribers.
Assess Tourisms Economic Significance
Further research needs to be carried out on the economic impact and significance
of the tourism sector. This will be done during November 2002 as part of the
current EU technical assistance programmed.
12.2 ATTRACTING CAPITAL INVESTMENT

Required Accommodation
When taking into the projected foreign bed night demand for 2010 of around one
million bed nights, the hotel rooms currently under construction and those
planned for, there will be a need to have a further 400 rooms of acceptable
international standard constructed by the and of this decade.
Available Tax Incentives
As per the Investment Act 1996, the tax incentive offered to investors must be
legally blinding. Foreign investors in Zanzibar have repotted to government that
not is not always the case in order to attract new investors, their needs to be
binding commitments form the government for the period which the tax
incentive have been granted.
Investment in Upgrading of Existing Hotels
In order to improve the standard of the hotel product a tax duty free importation
period of materials and equipment should be given to hotels so as to encourage
investment in upgrading over a given period.

Development Fund for Accommodation SMEs

There is a need for Zanzibar accommodation SMEs to be able to have funds for
upgrading their accommodation properties at interest rates so as to encourage
greater involvement from indigenous entrepreneurs in improving the tourism
sector.
Rationalize Tax and Fee Regime for Tourism Sector
In the tourism sector, the fiscal regime is presently far too onerous due to the
number of high rate of taxes in Zanzibar compared to competing it would appear
that there has been little co ordination between the various authorities in the way
these charges have been levied.
As the taxes and fees etc. are not being fully collected there is a need be to
improve collection methods and reporting requirements, i.e.: -

A monthly or quarterly tax, fees etc. and statically from to be returned by

the 10th of the following month.
No cash payments only bank transfers and cheques made out to the
Accountant General
Monthly or quarterly tax, fees, etc. payments on an assessment basis
On delayed payment an interest charge of x % per month.

Zanzibar Investment Promotion Agency

As Italian have already heavily invested in Zanzibar so as not to be over
dependent on one specific market, ZIPA Should concentrate their promotion
efforts in Germany, France, UK and Spain.
A list of 12 potential investors from these countries has been supplied by the
consultants for them to be invites to the October 2002 Investment Symposiums in
Arusha and to be mailed ZIPA documentation on Zanzibar Guidelines for
investors and possible prime sites on offer. Ideally ZIPA should have outline
business plans and architects design plus costing for available choice sites ready
for attracting potential investors to Zanzibar.
12. 3 ENHANCING AND EXPANDING THE TOURISM PRODUCT
Improve Quality Standards
The policy laid out in the un- adopted Tourism Policy Statement and Zanzibar
Vision 2020 calls for he development of high quality low impact tourism with
mass tourism rejected There is general agreement among all played that
approach should be followed by: Strengthening the Planning and Development System
The planning and development system is the principal tool for achieving high
quality standards. At the present time the system is not working, whilst the
framework for planning is in place the order funding of the planning and
development in resource and man power is required to achieve:

Effective forward planning

Effective development control
Effective monitoring and enforcement of planning rules, conditions and
guidelines.

Improving Infrastructure.
Access to the tourist area is generally poor. Improvements are requires
upgrading access roads to the tourist development zones.
12.4 IMPROVING SERVICE STANDARDS
Secure a Sustainable source of Funding for Tourism Training
At present, there is no mechanism in place to provide funding for tourism
training in a coordinated and sustainable way. Consideration should be given to
the imposition of a new training levelly on tourism establishment secure a
sustainable level of funding for the HTTC and tourism training and education in
general.
Establishment of a Tourism Training Policy Unit within the Commission for
Tourism
Tourism training and human recourse development policy at present within the
responsibilities of the Commission for Tourism. However, there aprs to be no
written policy or objectctive for tourism training and education or human
resources development and responsibility for this is not within the Commission.
There is a need to establish a training unit within the Commission for Tourism,
which would assume responsibility for.

The identification and prioritization of training needs

Formulation of curricula standards and syllabi for tourism training at all
levels in co-operation of curricula standards the Education.
Approval of training establishments, ensuring that only those
establishment that meet the industrys desired standards of facilities
course content instruction qualifications etc, approved.
Advising on the examination standards and system of award for tourism
training at regulatory bodies and
In response to identified training needs, co-ordination the delivery of
required in service training through trainer programmer.

Establishment of Tourism Training Advisory Committee

In carrying out the above tasks, the new training unit should be assisted by an
Advisory Committee drawn from the industry.

Upgrading the HTTC

There is a need to modernize upgrade and reequip the Hotel and Tourism
Training Center it is recommended that technical assistance be sought from a
bilateral or maltreat donor agency to assist with a review of equipment needs has
already been provided to the Consultant.

Train the Trainer Programmers

To meet future training needs there will have to be a substantial degree of on the
job training However this implies that the trainer must first themselves before
they can train anyone else.
There is need to recruit cadre of training with penalized area to develop the skills
and knowledge of selected supervisory staff from the hotel restaurant and tour
operator companies as well as other existing training officer in the tourism
assistance a mobile training team of for example, three specialist train the trainer
should be provided for six month each over a period of two years.
Management Training
Donor support should be sought for scholarship for young Zanzibar to attend
tourism management training course in Utalii and other recognized colleges e.g.
Similar to those provided for mainlanders under the recently concluded Irish aid
project.

Training Tour Guides

There is need to formalize and upgrade the training of tour guides A tour guides
should receive a license from the Commission for Tourism only after successful
completion of a formal course in tour guiding, which should include English and
other language course.
Institutional Strengthening
There is no planned training programme being implemented within the Ministry
or Commission for Tourism. The training need is for planned programme of
scholarships for selected staff to study abroad and a programme of recruitment

of suitable qualified personnel based on post description with clear objectives

and performance criteria.
Tourism Public Awareness Campaign
The tourism industry needs the support of the general population if it is to
flourish in Zanzibars traditional mainly Muslim society. The inherent
advantages of tourism development to the domestic population must be
emphasized social as well as economic and not just the economic aspects through
a continuation of the public awareness campaigns that have already been
launched by the Commission for Tourism.
The public awareness campaign which it is hopes will give local people and
communities a positive disposition of tourism issue in primary and secondary
school subjects and the provision of advice to young Zanzibaris on the range of
carrier opportunities available in tourism.
12.4 IMPROVING ACCESS TRANSPORT AND INFRASTUCTURE
International Air Access
Presently from Europe, Zanzibar has to rely mainly on charter flights from Italy
and Spain The British Airways fights to Dar es- salaam have immediate onward
connecting flights with local carries as do the Swiss Airline passenger arriving in
Dar es- salaam A. large number of Europeans access Zanzibar via Nairobi with
Airways.
From November 2002 condor will be operating between Frankfurt/ Kilimanjaro
Mombassa Frankfurt. Should be Zanzibar be able to attract more German tour
operator to contract different Zanzibar hotel room allotments, then together
Zanzibar and the tour operator my be able to interest Condor in flying
Kilimanjaro Zanzibar from 2003.
Airport Facilities Improvements
Zanzibar airport facilities are in a very bad condition and give the visitor a very
first and last impression of Zanzibar air from pushing forward the development
of an airport master plan, which is to be funded via the Word bank, for the
extensities of the runway from 2.462 m to 3.00m resurfacing the existing runway
extension for main building plus installation of an ILS (instrument Landing
System) etc. there is a need to action immediate can now take F 20 80 Air craft.
Zanzibar Airport Improvements Working Action Group (ZAIWAG)

While the government has US$ 1.9 million income p.a ($ 1.4 million departure tax
plus 0.5 million landing fees, etc) through the Zanzibar airport visa a Vis US $
0.35 million operational expenses p.a over the past decade it appears that no
capital improvement nor proper maintenance and repairs have been undertaken.
There a number of issue and work needs to be undertaken immediately, which
cannot wait a number of years until the airport master plan is implemented.
These immediate actions can be funded from a number of days income earned at
the airport (i.e.. c. US$ 5.000 per day).
It is proposed that a ZAIWAG made up of public and private sector
representatives be fumed to establish an immediate action plan and budget.
Furthermore, together with the airport manger to ordinate and control its actual
implementation.
Harbors Ferry/Cruise Ship Facilities
In 2000, after the Gibbs (UK) new container port facility feasibility study
resulting an investment cost of US$ 40 million and due to the collapsing quay in
the Zanzibar harbors, in 2002, a further EC funded study has been undertaken by
HBC (Germany); HBC are now completing a master plan for upgrading the
existing ferry and container harbors. The investment cost for the harbors
rehabilitation has been estimated to be in the region of US$ 22 million, and thus
less costly than the Gibbs proposal.
Ferry passenger movements have increased over the year while cruise ship
numbers have not been increasing due to the conditions at the port of entry.

Table 12 Entry to Zanzibar by Sea.

Year

1998

Ferry in/out
7.18.700
No. Cruise Ships
45

1999

2000

2001

808.700
38

679.600
42

838.00
38

(* Elections year etc.)

The arrival/departure area for ferries and cruise ships and tends is very chaotic
and disorganized (no marked/signed ways harassment, lack of safety no toilets
etc.) There is a lack of co-operation and co ordination of the different entities

involved (Zanzibar port Corporation, Immigration, Customs, ZCT) It is proposed

that a Post Impotent to be implemented.

Ferryboat services between Dar es Salaam and Zanzibar have improved with the
much faster transfer via the hydrofoil service. The condition and safety of most
of the other ferries (life jackets, emergency exits) need to be addressed.
Internal Access Infrastructure
Internal access by roads needs to be improved with most of the roads to beach
resort hotels are not paved and are still rough dirt roads.
There is a complete lack of road signage.
12. 6 IMPROVING SECURITY
There is lack of presence of police patrolling Stone Town in the evening, at a time
when their presence is most needed.
Furthermore at the airports at a time of large arrival and departure of passengers
it appears police are not present to maintain law and order and restrict the
harassment of visitors.
It is not clear as to the necessity and present purpose of having the many police
roadblock checks, which at time bring about long waiting periods and
unnecessary discussions. This issue needs reviewing by the respective
authorities.
Presently 15 police officers are being trained to be tourist police/ wardens
Further officers should be trained. They should be able to speak English and
have background knowledge of the area, which they will be patrolling.
Most of the larger hotels have to employ (usually 2) police officers to work part
time with the hotel security guides in trying to improve security at the hotels As
in other tourist destinations as hotel security guides after a time become usually
too familiar with staff and people in the area the hotels should have a hotel
security company to train, pool and rotate the security guides in the hotels.
Dos and Donts
Visitors should be made aware of health and safety precautions, which they need
to conduction. The same applies to the code of conduct to be observer on in

Muslim country It is proposed that Dos and Donts leaflets as part of a

welcoming note be distributed to visitors upon arrival and a in hotels.
The Tourism Awareness Programmer by ZCT, Zanzibars should be also made
aware of how they can contribute to making visitors safer during their stay in
Zanzibar.
12.7 CREATING CREATER MARKET AWARENESS
There is a need formulate an overall marketing strategy and plan, based on a
realistic sustainable budget.
This will be undertaken during October 2002 as part of the current EU technical
assistance programmer.
12.8 STERENGTHENNG INSTUTIONS AND ECONOMIC LINKAGES
Tourism Policy Statement
In 1997 an extensive tourism policy statement was drafted. However to date this
has neither been implemented nor ratified. There is a need for a realistic and
implement able Zanzibar Tourism Policy Statement to be formulated, approved
and published by government. The policy should then be implemented by ZCT.

Public Sector Tourism Institutions

There are five main types of national tourism agencies for tourism promotion
and development, which have evolved over the past 30 years, i.e.:

Autonomous, non-commercial tourism organizations such as the Irish Tourist

Board, the British Tourist Authority, Zimbabwe Tourism Authority;
Non-commercial tourism authority, board or bureau within a Ministry such as
the Bahamas Tourist Board, the Sri Lanka Tourist Board and National Tourism
Board in Hungary;
Government Ministry as in the case of Turkey;
Tourism foundations as in the Dutch Caribbean Islands of the Caribbean;
Private sector agency such as the USNTO.

Within each category, the functions of the official tourist bodies vary according to the
governmental structure and economic environment of the country concerned. However,
in general these functions may be summed up as some combination of:-

Destination marketing;
Marketing planning;
Product development planning, advice and stimulation;
Setting and monitoring of product standards, including grading/classification of
accommodation;
Tourist information services;
Research and statistics;
Promotion of access transport.

In the case of Zanzibar in 1996 a non-commercial Commission for Tourism was formed.
This institution comes under the Ministry responsible for tourism. Apart from the above
mentioned functions, the ZCT is also responsible for tourism sector licensing.
Strengthening the Zanzibar Tourism Institution
The ZCT needs to be strengthened as follows:

As per Part II, Section 4 (2) of the 1996 Act, the Minister should appoint a ZCT
Tourism Advisory Board with public and private sector representatives;
A review of the role, functions, job descriptions, operational efficiency etc. of the
ZCT needs to be undertaken;
There is a need to secure proper funding for the administrative personnel and
necessary marketing expenditures;
Have manpower training and study tours funding secured;
Having a better structured marketing and promotion co-operation with TTB;
Seek advice on establishing a reliable and comprehensive statistical data base and
Tourism Management Information System; furthermore, a more professionally
developed Website is necessary;
Revise and update legislation and regulations so as to have an effective tourism
organization for Zanzibar in future years.

In order to expedite and secure implementation of the institutional strengthening process,

the Government should seek technical assistance funding for a Tourism and Marketing
Advisor for 2 3 years along with a pool (6 man-months) of short term technical advisors
and furthermore, funds for equipment, promotional material and manpower training/study
tours.
Forming Private Sector Institutions
A representative body for the tourism private sector needs to be formed in Zanzibar. A
Founding Committee should be initiated.
In the interest of Public Private Partnership (PPP) and as in the case of the
establishment of the Tourism Confederation of Tanzania, start-up funding and assistance

should be sought for office equipment and possible subsidizing the Associations
Executive Secretary costs during the first year.
Strengthening Linkages with other Sectors of the Economy
In order to maximize the socio-economic benefits of tourism as far as possible, the
revenues received from international tourism must remain in Zanzibar and Tanzania, i.e.
avoid as much leakage as possible brought about by paying for imported goods and
services in meeting the needs of the tourists.
The primary tasks associated herewith are:

Identify all imported inputs to tourism and the extent to which these could be
supplied by Zanzibar and the mainland;
Communicate the opportunities that exist to substitute imported goods consumed
by the tourism sector with those produced in Zanzibar and the mainland;
Identify ways in which indigenous product sales to tourists can be expanded;

Based on statistical data, i.e. recent BESO report on agricultural product needs of the
tourism sector, local farmers and producers should be encouraged to produce relevant
crops for supplying hotels and restaurants.

13.

ACTION PLAN IMPLEMENTATION

13.1 POLICY ISSUES

To successfully implement the master plan the government of Zanzibar must
address a number of policy issues: Tourism Policy Direction
Role of the Public Sector
Strengthening Tourism Institutions
Encouraging Investment and Enterprise
Tourism Policy Direction
The Government of Zanzibar must make clear in a published policy statement
the direction tourism will be taking in the future. The lack of clear policy in the
past has resulted in a lower quality of tourism than it wished to promote. It must
be made clear to all existing and potential investors what levels of service are
expected and what will be tolerated. Potential investors who are unable be meet
the defined quality levels in the policy should not be granted leases or planning
permissions in the future.
Role of Public Sector
The role of the public sector in Zanzibar should encompass:

Infrastructure development and services to tourism areas and zones;

Development planning (forward, control and enforcement)
Destination marketing;
Registration, grading and inspection of tourism services;
Manpower planning and training
Enterprise development
Security awareness

Strengthening Tourism Institutions

For a successful tourism industry the symbiotic relationship between the public
and private sectors must be established and nurtured. The Tourism Advisory
Board as provided for in the legal framework should be established along with a
Zanzibar Hotel and Tourism Association in which both the public and public
and private sectors co-operate and take joint responsibility.

Encouraging Investment and Enterprise

It is the essential role of Government to provide a positive climate for investment
and entrepreneurship.

Tourism Plan Schedule

Implementation of the plan requires that a wide rang of actions be undertaken
either simultaneously or in methodical order. The tourism industry in Zanzibar
is well established and if left to its own devices could potentially grow further.
However, it is not achieving the quality that is desired and therefore there is an
urgent need to intervene with policies and actions that will turn tourism into the
desired path.
Many of the actions may appear to be radical and to some extent will be resisted,
especially in the areas of land use planning which in many respects is the key to
improvement, for without changes and institutional investment the tourism
product will remain static or decline in quality.
Changes to institutional arrangements, manpower training and improvements to
marketing will all be required in order to meet the new demand for a high
quality product which satisfies high spending clients and the need s of foreign
investors.
Responsibility For Tourism Plan Implementation
Responsibility for overseeing the plan rests with the Commission For Tourism.
However, the Commission only has direct control over those agencies that come
under its influence. Implementation of the plan requires that a wide rang of
institutions in the public and private sectors, non-government organizations,
international donors etc. accept it. Financial resources will need to be
forthcoming from central government and support from the international
community in some important areas.
Further Support to Zanzibar Tourism Master Plan
In order to develop an integrated approach to the sustainable long term
development of tourism in Zanzibar and ensure successful implementation, the
Tourism Master Plan will require further development, refinement and support
in the following areas:

Institutional strengthening
Marketing

Master Planning for Tourism Zones (physical, environmental, landscape)

Eco-tourism Plan for Pemba
Carrying Capacity/LAC study and management for Stone Town
Interpretation plan
Coastal Zone Management Plan

Plan Costs and Financing

The cost of implementing the plan can be split between direct costs of developing
and supporting the tourist industry in terms of marketing, training and product
development and the cost of providing the necessary infrastructure and
environmental measures need to maintain a high quality product. infrastructure
investments not only benefit the tourism sector but the growth of all economic
sectors and the Zanzibar community at large
Table 13

Total Public Sector Investment 2003 2005

Component
Euro (millions)
___________________________________________________
Technical Assistance
1.5
(48 man months)
Institutional Strengthening and Human 0.75
Development Resources2
Marketing and Promotion

0.75

Product development 3
0.5
____________________________________________________
TOTAL
3.5
____________________________________________________
Notes
1.
all figures are indicative and subject to detailed feasibility studies and
plans
2.
does not include construction of a new tourism training school
3.
tourism infrastructure or private sector costs not included
Table 14 Estimate of Infrastructure Development
Project
Construction of roads to tourist areas:-

Estimated Cost

Unguja Northern and South East Zones Euro 9 million

Pemba Northern and West Zones

Euro 5 million

Works to airports Unguja and Pemba

Euro 2.2 million

Waste disposal facilities Unguja and Euro 10 million

Pemba
Sewage treatment Stone Town
Euro 12.5 million
Notes
1.
all figures are indicative and subject to detailed feasibility studies and
plans
The sources for financing and implementation of the Tourism Plan are: Multilateral aid programmes
Bilateral aid programmes
Public funds in Zanzibar
Private funds in Zanzibar
Private foreign investment
It will be necessary at Government level to ascertain the extent of support that
will be forthcoming from bilateral and multi-lateral sources.
Recommended Priority Action Programme
Table 15
Summary of Recommended Priority Actions 2003 2005
Programme
Improving
Knowledge and
Know How
Attracting
Investment Capital

Actions
Agents

Tourism
Satellite

Commission
For
Accounts
Tourism

Statistical database

Immigration
Department

Overhaul tourism tax and

Revenue Authority
fee regime for tourism

Commission for Land
sector
and Environment

Review
land
leasing

ZIPA
regulations

Create Land Bank and
promote sites to investors

Improving
Standards

Service

Improving
Infrastructure

Review existing non active

leases and withdraw sites
as required
Increase
promotion
activities
Establish
Tourism
Training
Advisory
Committee
Formulate
manpower
training policy plan
Scholarships for young
Zanzibaris entering hotel
management
Hotel
and
tourism
management training
Customer care training for
police officers, customs
and immigration officials
Training courses for tour
guides
Upgrading and expansion
of HTTC
Train
the
trainer
programmes started
Initiate public awareness
campaigns
Develop integrated solid
waste disposal plans
Seek investment for solid
waste disposal facilities

Improving Access

Improving
Product

the

Improvements
to
Zanzibar Airport
Improvements
to
Zanzibar Port facilities for
tourism traffic
Adopt Tourism Policy
Statement
Provide resources and
increase
institutional

Commission
For
Tourism
Donor Agencies
University
Dares
Salaam

Government
of
Zanzibar
Commission for Land
and Environment
Ministry of Regional
administration
Municipalities
Donor agencies
Ministry
of
Communication

Government
of
Zanzibar Commission
For Tourism
Commission for Land



Tourism
Development Pemba

capacity of development
planning
Complete
planning
schemes for tourist zones
Direct
infrastructure
development to selected
zones
Introduce
completion
bonds for land leases
Remove
low
grade
developments
Introduce accommodation
development fund
Eco-tourism
Plan
for
Pemba

Environmental
Protection

Creating
Greater
Market Awareness

Strengthening
Institutions
and
Economic Linkages

Strengthen planning and

environment units
Develop whole island
(Unguja
and
Pemba)
Coastal
Zone
Management Plans
Provision
of
fisheries
protection vessels
Provide
permanent
anchor buoys in sensitive
areas
Protection
of
marine
species
Formulate
marketing
strategy
Revising and updating
web based advertising
Establish Zanzibar Hotel
and Tourism Association
Establish
Tourism
Advisory board

and Environment
Donor agencies

Commission
For
Tourism
Commission for Land
and Environment
Ministry
of
Agriculture
and
Fisheries
Local stakeholders
Donor Agencies
Government
of
Zanzibar
Commission for Land
and Environment
Ministry
of
Agriculture
and
Fisheries
Local stakeholders
Commission
for
Tourism
Donor agencies

Commission
Tourism

Stakeholders
Hotel
owners/managers
Commission
For

For

Cultural Awareness

Improving Security

Developing
Linkages with other
sectors

Undertake
carrying
capacity study for Stone
Town
Improvements
to
interpretation
and
information at cultural
sites
Develop closer working
relationship
between
Commission for Tourism
and Ministry of Education
Museums and Archives

Increase police presence in

Stone Town and at air and
sea ports
Identify and promote
links between tourism and
other economic sectors
Promote local products to
tourists

Tourism
Stone
Town
Conservation
and
Development
Authority
Commission
For
Tourism
Zanzibar
Municipal
Council
Department
of
Archives,
Museums
and Antiquities
Commission for Land
and Environment
Stakeholder groups
Government
of
Zanzibar
Commission
Tourism

For

APPENDIX A ECONOMIC IMPACT TOURISM

Currently, there are no official estimates of tourism contribution to Zanzibars
economy. However, two surveys are in progress one a Visitors Exit Survey and
the other a Survey of Tourism Establishments , which will lead to the provision
of improved data on the economic significance of tourism both in Zanzibar and
in Tanzania as a whole. These surveys are being carried out under the
supervision of a Working Group comprising representatives from the Ministry of
Natural Resources and Tourism, the Bank of Tanzania, the National Bureau of
Statistics, the Immigration Development and the Zanzibar Commission for
Tourism.
The estimates that follows are based on available data and should be regarded
as preliminary and subject to revision once more detailed analyses are
completed.
1. GENERAL ECONOMIC SITUATION
Trends in Economic Development
Gross Domestic Product (GDP) is estimated to have increased at current prices
from Tshs. 1123 billion in 1998 to Tshs. 208 billion in 2001, representing an
average annual growth rate of just under 20% in money terms. After allowing
for the effects of price inflation, the real rate of growth is currently around 4-5%
per annum.
In 2001, the Agricultural sector accounted for 39.3% of the total GDP, but of this
approximately half (48% in 1997) consisted of subsistence rather than monetary
production. The next largest sectors are Public Administration and services. 23%
of total GDP in 2001,and Trade (which includes the Hotels and Restaurants subsector). 18.4%. In contrast, the Manufacturing and Handicrafts sector accounted
for less than 5% of GDP in 2001. Further details are given in Table A1.
Table A1 Gross Domestic Product at Current Factor Cost by Industry, 1998
2001
Industry
Agriculture
which
Crops
Other

1998 (P)
Tshs. mn.
of 40,344
25,692
14,653

1999 (P)
Tshs. mn.
47,258
28,292
18,966

2000 (P)
Tshs. mn.
59,029
36,882
22,147

2001 (P)
Tshs. mn.
81,812
57,487
24,325

Mining
and
Quarrying
Manufacturing
and Handicrafts
Electricity
and
Water Supply
Construction
Trade of which:
Wholesale
and Retail
Hotels and
Restaurants

521

542

461

586

8,033

8,402

8,926

9,270

1,722

1,894

2,427

2,609

5,174
26,428
19,288

5,770
31,562
24,064

3,897
34,515
26,134

10,663
38,227
29,751

7,140

7,497

8,381

8,476

Transport
and
Communication
Finance
Public
Administration
and services of
which:
Public
Administra
tion
Community
and Social
Services

6,597

7,631

9,543

11,722

2,825
31.209

4,334
34,125

4,696
40,857

5,478
47,766

22,883

25,424

31,729

37,993

8,325

8,701

9,128

9773

Imputed
Bank (174)
Service Charges

(1,685)

(223)

(48)

Total GDP

139,834

164,128

208,085

122,678

Per
capita 142,063
157,213
179,153
220,518
GDP(Tshs.)
Per capita GDP 219
203
224
248
(US $)
Source: Office of the Government Statistician, Ministry of Finance and
Economic Affairs:
Provisional estimates.

Population and Labour Force

According to the Office of the Government Statistician, the total population
(permanent resident population ) of Zanzibar was just under one million
persons (944,000 persons0 in 2001 (mid year estimate); of which roughly 60%
were resident in Unguja and 40% in Pemba . More precise details will be
available when the results of the 2002 Census are complied.
There are no published recent data on the size or composition of the labour force,
or the number; employed persons.
However, based on the results of the Tanzania Labour Force Survey 2000/01. It
is estimated that some 44% of the total population is economically active, and
that around 42% is currently employed. It should be noted that a person is
counted as currently employed if he/she had at least one hours work in the
previous seven days, or has been temporarily absent from work during the same
period.
In 1992, about 60% of the total labour force was engaged in Agriculture, Forestry
and Fishing, but (reflecting the large element of subsistence farming) this sector
accounted for only 12% of total wage earners. In 1995, some 43% of all wage
earners were engaged in the services sector, including public administration.
Living Standards
Per capita GDP is estimated to have increased from $248 over the period 19982001.
Socio Economic Development Goals.
The overall socio-economic development goal for Zanzibar, as set out in the
Governments Vision 2020, is to eradicate abject poverty and to attain sustainable
human development by the year 2020.
The realization of this objective is predicated on meeting the following
challenges.
Attainment of high and sustainable economic growth;
Transformation of the economy from a predominantly rural-based
subsistence agricultural economy to a diversified and semi-industrialized
economy with a modern rural sector;
Promotion of sustainable tourism that emphasizes high quality
development;
Having a well developed and effectively utilized human resource; and

Attainment of full employment by the year 2020.

Specific objectives include the attainment by 2020 of

An economic growth rate averaging 9 10% per annum over the period;
A high level of employment in the modern sector (50 to be employed in
tourism and free zones; 20 % in agriculture and 30% in all other sectors).
An increase in income per capita from $200 to the level of middle income
countries; and
A diversified and semi-industrialized economy, with the combined
contribution of tourism, trade, manufacturing and construction reaching
over 60% of gross domestic product.

2. CONTRIBUTION TO GROSS DOMESTIC PRODUCT

Background
The tourism sector is not yet separately identified in the system of national
accounts used in Tanzania, including Zanzibar. Among the difficulties are the
fact tourism straddles many other sectors such as transport and commerce as
well as the hotels and restaurants sub- sector(which is often assumed to be
coterminous with the tourism sector) and that the goods and services provide by
tourism establishments are consumed by local residents as well as international
and domestic tourists. To overcome these difficulties, the recommended practice
adopted in other countries is to establish a satellite account for the tourism
sector within the system of national accounts.
In the absence of better data, two methods have been used to measure tourisms
contribution to GDP. The first (output approach) is to assume that a certain
proportion of the output of various economic sectors is tourism-related and ten
to express the resulting sum as a percentage of total GDP; the second
(expenditure approach) is to express net tourism earning as a proportion of GDP
(or as a proportion of value added in the tertiary sector).
Output Approach
If the same co-efficients as derived by the National Bureau of Statistics for
Tanzania as a whole were applied to the estimates of Zanzibars GDP, tourisms
share would be approximately 113% in 2001 as shown in Table A2.

Table A2 Share of GDP Ascribed to Tourism, 2001

Value
Tshs.mn.
Agriculture

81,812

Added Tourism Share*%

Tourism
Tshs.mn.

0.44

360

Trade (including 38,227

Hotels
&
Restaurants)

61.17

23,383

Transport
& 11,722
Communication

23.42

2,745

Finance

0.10

0.59

282

5,478

Public
47,766
Administration &
Services
Total Tourism

26,775

GDP

208,085

Tourism share (%)

12.87

Share

* as determined by National Bureau of Statistics and Tourism Division, Ministry

of Natural Resources and Tourism for Tanzania as a whole
Source: Consultants estimates
Expenditure Approach
The starting point for this analysis are the estimated gross earnings from tourism.
According to the preliminary results of the International Visitors Exit Survey
(carried out over the period July 30- September 15, 2001) international visitors to
Zanzibar spent an estimated $ 46 million in 2001.
Being based on results for the peak season only, this figure may need to be
revised downwards when more complete information becomes available. On
the other hand, the estimate excludes earnings from international foreign visitors
in Zanzibar on flights from the mainland. Including the latter gives a revised
figure of $ 55 million for gross visitor expenditure in 2001(based on a total of

91,000 international visitors, an average daily expenditure of $120

average length of stay of five days per international visitors).

and an

However, it would be correct to use the estimate of gross visitor expenditure to

measure tourisms GDP contribution. This should be measured net of the
imports of goods and services from mainland Tanzania as well as from foreign
countries. Measures based on gross tourism receipts include the value of such
imports and therefore result in an overestimate of the contribution of tourism to
GDP.
However, there is no precise data on the value of goods and services imported to
meet the needs of the tourism sector, or therefore on the proportion of total
visitor expenditure.
It is estimated that Zanzibar received a total some 121,000 visitors in 2001,
comprising 76,000 international visitors included in the official statistics, an
estimated 15,000 who traveled to Zanzibar no internal on internal flights and an
estimated 30,000 domestic visitors. The expenditure of the domestic visitors has
been excluded from the estimate of foreign exchange earnings.

Accounted for by such imports. Given the present size and structure of
Zanzibars economy (which is predominantly based on agriculture), it is
probable that the tourism sector needs to bring in a substantial proportion of its
inputs of goods and services from the mainland and other countries.
Applying provisional estimates of the import component for each main category
of expenditure (accommodation, food and beverage, transportation, etc) as given
in the Exit Survey, it is calculated that, in 2001, imports from mainland Tanzania
and abroad represented some 40% of gross international visitor expenditure in
Zanzibar5. This figure, which would tend to be higher for all- inclusive clubs and
lower for locally-owned properties, implies that import leakages from gross
tourism receipts represented some 9% of Zanzibars GDP in 2001.
On this basis (which can be considered a reasonable working hypothesis until
more accurate data become available), the net contribution of tourism to the
Zanzibar economy was around Tshs. 29 billion in 2001, representing some 14% of
GDP.
Details are shown in Table A3.

Table A3 Net Revenue from Tourism as % of GDP, 2001

Gross Domestic Product (Tshs. mn.)

Estimated Gross Visitor Expenditure
US$ million
Tshs. million
Loss of earning Via imports(%)
Net revenue from tourism
US$ million
Tshs. million

208,085
55
48,895
40%
33
29,337

Net revenue from tourism as a % of 14.1%

GDP
Source: Consultants estimates
Comparison of Results
Tourisms contribution to GDP in 2001 has been variously estimated at 13%
(output approach) and 14% (expenditure approach). While neither neither
estimate can be regarded as robust, the latter higher figure is preferred as it is
partly based on survey information.
3. CONTRIBUTION TO FOREIGN EXCHANGE EARNINGS
Gross earnings from international tourism are estimated to have amounted to
some $55 million in 2001.
A limited survey of hotels and lodges in Tanzanias Northern Circuit indicated
that leakages to the outside world represented about 27% of total revenues. The
corresponding figure for Zanzibar would be expected to be higher given that it
include imports from the mainland as well abroad.

4. CONTRIBUTION TO EMPLOYMENT
Expenditure by tourist and other visitors has direct, indirect and induced effects
on employment.
Direct employment: this category consists of employment generated by
expenditure of tourists on goods and services in hotel, restaurants, shops, and
other tourism services.

Indirect employment: this category consists of the employment generated by

suppliers to the tourism sector e.g local food and beverage suppliers that employ
people to meet the needs of the hotel, etc. sector.
Induced employment: this category consist of the employment generated in
other sectors of the economy resulting from the increased consumption
expenditure of people who earn income from tourism, whether directly
employment.
The employment multiplier can be expressed in two ways: either in terms of the
number of indirect and induced jobs generated by direct employment. or the
number of indirect and induced jobs created by each unit (or additional unit) of
tourism expenditure. Measurement requires sophisticated techniques, such as
input output analysis, which are presently not available for Zanzibar.
Direct employment
While there no official estimates or published data, it is estimated that currently
some 5,800 persons are directly employed by the tourism industry in Zanzibar, of
whom approximately 4,400 (76%) are employed in the hotel/guest. Sub-sector.
The remainder are employed in tourists restaurants, tourist shops, ground tour
operators, tour guides, airlines (state-owned and private) the Commission of
Tourism and other tourism related government departments or as authorised
tour guides. This amounts to approximately 16 job international visitors
compared with the figure of 15 visitor quoted in the Torism Policy Statement.
Details are shown in Table A5.
Table A5 Estimated Direct Employment in Tourism,2001

Sub-sector
Hotel /Guest Houses
Tourist restaurant and
shops
Tour guides
Ground tour operators
Airlines, dive operators
etc.
Ministry/ Commission
for Tourism /Parastatals
Total

Total staff
4,400
300

%
76.2
5.2

325
500
100

5.6
8.7
1.7

150

2.6

5.775

100

Source: Consultants estimates

The above figures comprise persons employed in activities that are directly
serving visitors and receiving their income from tourist expenditure, and include
only these who are mainly serving tourism marketing. Naturally, there are many
others, such as person working in restaurants and shop, who receive part of their
income from tourist expenditure, but, in the absence of special surveys, it is
difficult to ascertain how much of this employment is tourism-related.
There is need for more comprehensive and accurate information on employment
in the tourism sector. As with tourisms contribution to GDP, this requires a new
definition of what constitutes the tourism sector and the estimation of the
proportion of employment in each sub-sector making up the newly defined
tourism sector that is tourism-related.
Total tourism-generated employment
As date on the in director and induced effects on employment in the tourism
sector is not available, another method has been used for estimating the full
employment contribution of tourism.
This involves taking the
employment/GDP contribution ratio for the non-agricultural sector (which
allows for the fact that agriculture is more labour intensive than other sectors)
and applying it to tourisms share of GDP.
On the assumption that employment/GDP ration for tourism is the same as for
the non-agricultural sector as a whole, tourism would have accounted for
approximately 9% of total employment in 2001. Assuming a total labour force of
around 396,000 persons, this translates to some 37,000 persons as shown in Table
A6.
Table A6 Total Tourism Employment Generated by Tourism, 2001

Non-agricultural sector
- GDP contribution (%)

60

- Employment contribution (%)

40

- Employment/GDP ratio

0.67

Tourisms GDP contribution (%)

14

Tourisms employment contribution (%)

9.4

Total employment (persons)

396,000

Tourisms employment contribution (persons)

37,200

Source: Consultants estimates

Based on the above analysis, it is estimated that the ration of direct to total
employment generated by tourism in Zanzibar in 2001 was approximately 1: 6
i.e. each directo job created ultimately generates around five other jobs (or fulltime job equivalents) in other sectors of the Zanzibar economy. This may seem
high, but perhaps not in the context of the definition of what constitutes a job
(one hour worked in the previous seven days).
Another way of looking at the employment generation effects is to relate these to
the number of jobs sustained by the net expenditure on tourism i.e 37,000 jobs
from $ 33 million net expenditure in 2001, or one job for every &892 in net
expenditure.
5. CONTRIBUTION TO GOVERNMENT REVENUES
The contribution of tourism to Government revenues includes the main taxes on
tourism businesses (namely, VAT and corporate income tax) and the airport
departure charge (service charge) levied on departing air and sea passengers.
The various permits, licences and fees payable by tourism operators are also a
form of taxation, and are regarded as being both unduly numerous and onerous.
VAT is paid at 20% by any registered company with a turnover exceeding Tsh.
15 million per annum. Below that level, and applying mostly to small hotels; and
10% for restaurants, Personal income tax and corporate tax are payable at 17%40%(PAYE)and 30% on profits, respectively.
According to information provided to the Consultant by the Zanzibar Revenue
Board, some Tshs. 3.0 billion was raised in fiscal year 2001/02 in direct taxation
from the hotels, restaurants and tour operators from VAT and sales levies, of
which the great bulk (87%) was generated by VAT on hotels.
The airport and seaport service charges contributed a further Tshs,1.6 billion, of
which tourists may have generated approximately half, i.e. Tshs. 800 million.
There is no precise data on the amount of other taxes, including personal income
tax and corporate tax revenue from licences and fees, import duties, etc
generated by the tourism enterprises and their employees. However, if it were
assumed that tourism share of such taxes, etc. was the same as its share of GDP
(i.e.14%) the tourism sector would have generated a further Tshs. 4.2 billion to
Exchequer in 2001/02 Thus, total tourism generated government revenues could
have been as much as Tshs. 8.1 billion in the last fiscal year.

In 2001, tax and other receipts from the hotel sector represented around 19% of
total government revenues. Details are given in Table A7.
With a more comprehensive revenue collection system and the inclusion of all
government revenues generated by the wider tourism sector, the contribution
would increase. The present dual tax system VAT for some levy for others is
said to be harmful to the tourism industry. It has been suggested that the VAT
should be applied to all hotels, guesthouses, and other tourism operators and all
other charges, fees and licences removed, or reduced.
Table A7 Contribution of Tourism to Government Revenues,2001/02

.
VAT
VAT local,of which
Hotels
Restaurants
Tours
Sub-total
Hotel Levy
Restaurant Levy
Tour Operation Levy
Airport Service Charge
Seaport Service Charge
Sub-total
Tourism share (estimated at 50%)
Income tax
Import duties
Other indirect taxes
Sub-total
Tourism share (assumed to be 14%)
Total tourism related
Total Government Revenues
Tourism related Revenues as % of
total

2001/2002(July-June)
Tshs.mn.
(8;771)
2,612
84
132
2,828
162
37
15
1,184
460
1,644
822
3,608
15,488
10,968
30,064
30,209
8,073
42,241
19.1

Sources:

i)
ii)

Zanzibar Revenue Board

Ministry of Finance and Economic Affairs

iii)

6.

Consultants estimates

TOURISMS ECONOMIC CONTRIBUTION IN 2012

This section examines the future contribution of tourism to GDP, foreign

exchange, employment and government revenues in Zanzibar.
Contribution to GDP
The contribution of tourism to GDP will depend on the rate at which the
economy grows, the rate at which gross revenue from tourism increases and the
proportion of the revenue that remains within Zanzibar,
Growth of GDP
According to Vision 2020, by the year 2020, Zanzibar should have attained a high
and sustainable rate economic growth, averaging 9 10% per annum from the
current level of 4.5%. The expected growth between the years 2000 to 2005 is
between 5 6% per annum at 1985 prices, rising to between 7 8% per annum by
2010 and attaining the level of between 9-10% per annum by 2020.
Attainment of these growth targets would result in a doubling of GDP between
2001 and 2012.
Estimates of tourism revenue
International tourism arrivals (i.e excluding domestic visitors) are projected to
increase from an estimated 91,000 persons in 2001 to around 180,000 persons in
2012, generating a total of approximately one million bed-nights in the latter
year. Assuming an increase from $120 to $150 in the average expenditure per
person per day in real terms, gross visitor expenditure would amount to $150
million in 2012 compared to an estimated $55 million in 2001, and even more if
the spending of domestic tourists were included.
The estimates of tourism are gross estimates i.e the value of imported inputs is
included. The proportion of gross revenue from tourism that is lost through
imports (estimated at 40% in section 2.3) should decline over time as the
Zanzibar economy develops. Growth in the economy, and in the structure of the
economy, is likely to result in some degree of import substitution for tourism,
with a grater proportion of requirements of goods and services especially

foodstuffs- likely to be produced locally rather than imported from other parts of
Tanzania or from abroad, especially over the longer term.
Strategies to speed up import replacement for tourism are likely to be medium to
long-term in their effects and are likely to have only a small impact before 2012.
Thus, the leakage of gross earning via imports is assumed to be 35% in 2012.
On the basis of the above assumptions, tourisms contribution to GDP is
projected to increase from an estimates 14% in 2001 to around 21% by 2012 ( as
shown in Table A8), which implies that tourism will grow considerably faster
than other sectors of the economy. The projected average annual growth rate for
net tourism earnings is over 10% for the period 2001-12, compared with 7-8% per
annum for the economy as a whole.
Table A 8 Tourisms Contribution to GDP, 2001 12

Gross earnings
US$ million
Tshs. billion
Proportion of Imports
(%)
Net
earnings
(Tshs.
billion)
GDP (Tshs. billion)
Contribution to GDP(%)

2001

2012

55
49
40

150
133
35

29

86

208
14

416(i)
21

Note: US$ are converted to Tshs. at the rate of US$=Tshs. 889 (the average rate
for 2001).
Source: Consultants estimates based on Vision 2020 target growth rates
Contribution to foreign exchange earnings
Table A 9 brings together the estimates of international visitor expenditure, or
gross foreign exchange earnings, from Table A 8 with the assumptions for the
levels of leakages through importation of goods and services from outside
Tanzania. Net foreign exchange earnings are projected to increase from an
estimated $46 million in 2001 to $116 million in 2012.
Table A9 Estimates of net foreign exchange earnings from tourism, 2001 12

2001
Gross foreign exchange $55 million
earnings
from
international
tourism
(US$ million)
Import leakages outside 17%
Tanzania (%)
Net foreign exchange $46 million
earnings
from
international
tourism
(US$ million)

2012
$ 133 million

13%
$ 116 million

Source: consultants estimates

Contribution to employment
While government plans do not indicate targets for employment growth,
Zanzibar Vision 2020 envisages that as much as 50% of all jobs in the modern
sector could be provide in tourism and the free zones by 2020.
Tourisms future contribution to direct employment is calculated on the basis of
the forecasts of the number of rooms and beds required to meet the project
number of tourist arrivals, with assumptions(admittedly very broad) about
indirect and induced multiplier effects.
The results are given Table 10 which shown total generated employment rising
from an estimated 37,000 jobs in 2001 to around 48,000 jobs in 2012. It should be
noted that the employment figures are full- time jobs, or full time job
equivalents in the case of persons (e.g. tour guide, souvenir vendors) who may
derive only part of their income from tourism. The total number of persons
either fully or party dependent on tourism as a source of livelihood is therefore
grater than the employment figures alone would suggest.
Table A10 Contribution of Tourism to employment, 2001 to 2012

Accommodation
Other direct
Indirect (i)
Induced (i)

2001
4,400
1,775
12,350
18,525

2012
5,000
3,000
16,000
24,000

Total

37,050

48,000

Source: Consultants estimates

Notes: (i) estimated at two jobs for every direct job
(ii) estimated at one job for every direct + indirect job
Dividing the estimates of net tourism earnings in Table A9 by the above
estimates of total tourism employment, it is calculated that net expenditure per
job will increase from approximately $892 in 2001 to around $1,792 in 2012.
Contribution to government revenues
Change to the tax regime and the level of tax incentives provided by government
for the development of different industries will be have an impact on the
contribution of the tourism sector to government revenues. It is not possible to
estimate with any precision the impact of such changes on the future
contribution of tourism to government revenues.
However, it is calculate what the potential contribution of tourism government
revenues might be if all tourists earnings were taxed at the AT rate of 20%
currently levied on the large hotel sector. The results of this exercise indicate that
the potential tax yield could increase from a notional Tshs. 8 billion in 2001 to
around Tshs. 21 billion in 2012. The figures exclude other tourism-related taxes
and charges (such as the airport departure tax) as well as any new tourism taxes
that might be introduced between now and 2012.
A good case could be made for allocating a certain fixed percentage of tourismgenerated government revenues to the ZCT for tourism promotion ad other
activities. A figure of 5% would generate around $500,0000 for ZCT in 2006, and
$1,000,000 in 2012, assuming that the potential tax yield were fully realized.
Reliability of the Estimates
Prediction for variables such as GDP and employment become increasingly
subject to change as the period over which the forecast is made becomes longer.
It would therefore be prudent to regard the foregoing estimates for the GDP ,
foreign exchange, employment and revenue contributions of tourism as subject
to possibly wide margins of error. Rather than introduce arrange of forecasts for
the main variables (which is one way of dealing with uncertainty but which be
comes cumbersome as the number of variables increases), a better solution is
update the estimates regularly.

It is recommended that in order to improve measurement of the economic impact

of tourism further research should be undertaken on the following:
-

Development of improved measures of tourisms contribution GDP e.g.

by following the WTOs guidelines for the establishment of tourism
satellite accounts;
Measurement of tourism income and employment multiplier effects;
Measurement of economic linkages between tourism and other sectors (
for example, using input-output analysis);
Measurement of leakages from the Zanzibar tourism sector to mainland
Tanzania and abroad; and
Improvements to the coverage, measurement and timeliness of tourism
supply and demand spastics.

This research should be co-ordinated by the ZCT , working in close co-operation

with the statistics Bureau and other relevant agencies. The University should
also be encouraged to participate in an ongoing tourism research programme.
7. LINKAGES WITH OTHER SECTIONS
General
Government policy should aim at increasing the proportion of the revenue from
tourism that remains in Zanzibar by encouraging greater linkages between
tourism and other economic sectors, and reducing leakages of tourism revenues
through implementation of import replacement strategies.
Given that Zanzibar is primarily an agricultural economy, with as yet
underdeveloped manufacturing and services sectors, it follows that the main
scope for developing increased linkages between tourism other economic sectors
lies in the promotion of increased purchases of local foodstuffs by hotels and
restaurants.

7.This

section draws on a recent report prepared by a British terms which visited

Zanzibar from February 24th to March 9th ,2002

Fresh foodstuffs
A high proportion of the fresh foods required by tourist hotels and restaurants
which the exception of fish, fruit, eggs and poultry, spices and, at certain seasons,
some vegetables is imported from mainland Tanzania, Kenya, South Africa or
even further a field.
The scale of this potential loss is indicated in Table A11, which (based on
indicative sample survey of buyers, produce, supplier and fresh food producers)
shows the approximate percentage of these foods that can be produced in
Zanzibar which are in fact sourced locally;
Table A11 Share of Fresh Foods Locally Sourced by Hotels and Restaurants

Fish and seafood

%Sourced in Zanzibar
(estimate)
90%

Fruits

80%

Eggs

75%

Herbs and spices

60%

Poultry

50%

Vegetables

20%

Meat (excluding poultry)

10%

Fresh Food Item

Comment
Some shellfish bought
from Mainland Tanzania
Stone seasonal
impon
from mainland Tanzania
and Kenya
Mainly from ZAPOCO
and smaller supplier;
some
bought
from
mainland,
Kenya
or
South Africa.
Most spices and spice
mixes are abundantly
available in Zanzibar
Same source as eggs;
concerns about food
safety
Bulk of supply comes
from
mainland
and
Kenya; more sourced
locally in wet season.
No intensive livestock
rearing or abattoirs on
Zanzibar;
plans
to
establish Disease Free
Zones
may
bring
changes.

Milk and milk products

5%

Honey

5%

Jams, pickles, chutneys

5%

Staples(cereals, potatoes, 2%
cassava, sweet potato)

Most hotels buy UHT

milk from mainland,
Kenya or South Africa;
local
milk
quality
considered doubtful
No honey collection and
processing
centre
in
Zanzibar
No effective local fruit
and vegetable processing
centers.
Most hotels assume that
tourists want European
staple foods which are
little grown in Zanzibar

Source: BESO Report, March 2002

Some hotels and restaurants, particularly the smaller and locally owned ones,
source a higher proportion of their food requirements from local farmers and
fishermen than the average figures in Table A11 suggest. They are able to do
this partly because the quantities they require are relatively small, partly
because they close links with local communities, and partly because they take
positive action to support and promote local production.
The reasons given by other hotels for not buying more food locally are
uncertainty regarding the quality and reliability of supply, unpredictable
demand, and some cases uncompetitive prices. However, a higher proportion of
the foods required could be produced and sourced locally if finance and
production inputs were available, along with technical guidance market
information, and food storage and processing facilities.
Producer Co operatives
Farmers and fishermen need to organize themselves in associations to facilitate
dealings with buyers as well as to gain access to inputs and services. Few
individual producers can assemble the quality and range of foods required. At
present, most hotels place orders with independent suppliers who buy what is
needed from individuals or groups of farmers of from local markets, and deliver
the food to the hotels. Many of these suppliers buy what they need at the central
market in Stone Town (where most of the produce on sale comes from the
mainland) rather than pursuing the more complicated approach of seeking local
sources.

Expending the Range of local Food Products

Many locally grown Zanzibar food products are seasonal (e.g. fruits, vegetables,
spices) or unfamiliar to tourists (cassava, sweet potatoes, breadfruit, etc). There
are opportunities for extending the range of products that farmer can supply to
tourist hotels (i) by promoting local food recipes in hotel menus and (ii) by
processing perishable foodstuffs.
Food Processing
Opportunities exist for small enterprises to process several agricultural products
fruit, juice, jams, spice mixes, chutneys, milk, honey essential oil, etc, most of
which are imported. Market analysis, training and finance will be needed to
enable
Zanzibar entrepreneurs to take advantage of these processing
opportunities.
Import Restrictions
Import restrictions on foods which can be produced locally would help local
farmers to establish themselves in the face of competition, but such action would
have to be taken with care to avoid the risk of creating inefficient monopolies.
Small and Medium Enterprises.
Small and maedium-sized enterprises make a range of products including handwoven material, metal tools, furniture, soap, salt, handcrafts, cultured milk,
essential oils and spice mixes, etc. Nearly all are hampered by lack of finance,
infrastructure, technical knowledge and a clear understanding of the needs and
opportunities of the market.
Construction Materials
Many of the smaller hotels, such as Chumbe Matemwe, etc as well as some larger
ones, make use of local construction materials, furniture are furnishing where
feasible, including Casuarinas and mangrove poles, bulling blocks, wood
floorings and furniture, coconut or banana leaf that on etc. More hotels could
be encouraged to do the same, entering into contracts with SMEs for installation
and supply of the necessary materials.
Handicrafts
A part from Zanzibar chests and other wooden items, most of the souvenirs and
handicrafts sold in tourist shops are imported from mainland Tanzania, Kenya
or India. Shopkeepers should be encouraged to buy locally made handcrafts.

However, there is no facility for teaching young people the skills needed to
produce and market handicraft items made from wood, straw, cloth spices, etc.
A handicrafts Training Centre would help to ensure a supply of appropriate
items of acceptable quality. It is recommended that such centers should be
established on both Unguja and Pemba.
Both Centers should also have facilities for bottling of fruit juices, pulps jams and
jellies, processing of foodstuffs for chutneys, pickles, pickles, biscuits; solar
drying of fruit, anf packing of spices and local specialties such as honey- based
halva. Hotel and restaurant buyers could then visit such centers and special
events could be organized to increase awareness of locally produced items.
The recently- constructed handicrafts market at Kiwengwa (East Coast) may not
be as convenient for hotel guests as the availability of on site sales outlets.
Investment climate
Tourist hotels, small enterprises, food suppliers and producers all need finance
on affordable terms, both for long term investment in buildings and equipment
and for short-term working capital. The lack of suitable funding sources is a
major constraint to sustainable tourism development in Zanzibar.
Existing financial institutions, such as the peoples Bank National Micro finance
Bank and the few private banks operating in Zanzibar, do not lend to farmers
because of risk and lack of collateral. Without a source of loan finance on
normal or advantages terms, the SME sector in Zanzibar cannot be expected to
thrive.
The savings and credit co-operatives which CARE International is promoting
can fill part of the funding gap.
Negative Impacts of Tourism
While tourism has created undoubted benefits for many Zanzibaris by creating
jobs, markets for food and other commodities, improved infrastructure, etc, there are downside too, including
Competition for scarce resources resulting in food price rises and
shortages of certain foods to local population e.g. fish;
Growing resentment when jobs are taken by non-Zanzibaris and seeming
preference is given to outsiders;
Dumping of rubbish, deforestation, soil and water pollution, wastage of
power and water, etc. which put the environmental sustainability of the
industry at serious risk; and

Social and cultural tensions between hotels, visitors and the host
populations.

The costs and benefits of tourism need to be carefully monitored and steps taken
to improve the net benefits to the local population. It is important to promote
positive impacts and to avoid social tensions by ensuring that economic benefits
reach the population surrounding tourist hotels, by encouraging cultural
exchanges and by sensitizing both tourisms and local people to each others
cultural norms.
Summary of Main Recommendations to Increase Linkages
The major recommendations for fostering increased linkages between tourism
and other economic sectors (especially local food production and sourcing), and
reducing the negative impacts of tourism, are as follows:a) Tourist hotels should be encouraged to invest in local production of the
foodstuffs they want to buy, by pre-financing the supply of inputs (seeds,
agrochemicals, irrigation equipment, fishing boats, tackle, etc.) to farmers
and fishermen and, where necessary, production equipment to local small
farmers or farmers co-operatives;
b) The Ministry of Agriculture should provide technical advice and set up a
market information service for farmers and food suppliers to help them to
plan their production and to negotiate on price; the proposed Marketing
Unit should also monitor the impact of local food sourcing and food
imports on local food prices and availability;
c) Local NGOs should provide organizational support to farmers and food
suppliers to enable them to understand and take advantage of market
opportunities in touris;
d) Food storage and food processing facilities should be established near the
growing areas, to widen the range of products that can be sourced locally
and to extend the period through which they can remain available;
e) Unnecessary imports of fresh foods should be restricted, but only where
locally produced substitutes can be found; care should be taken not to
create an inefficient monopoly;
f) Financial and technical assistance should be provide to SMEs in food
processing, hotel construction, wood and metal industry, and handicraft
manufacture; existing financial institutions are often reluctant to lend to
small farmers; savings and credit co-operatives (such as the one formed in
Pemba by the Misali Island Conservation Association are a good
alternative);

g. Consultative planning with local community representatives; and

h. Intensive training of Zanzibar nationals for employment in the tourism
industry

8. INCREASING THE FROM TOURISM ECONOMIC BENEFITS

Strategies for increasing the overall economic benefits, from tourism included:
-

Encouraging a higher level of visits (e.g via marketing and information

dissemination) the most desirable markets may be those that generate a
lower number of higher spending tourists who are likely to create fewer
environmental or social problems of congestion and overuse of tourist
attractions, facilities, services and infrastructure at they sites, on the other
hand, tourists who engage in eco-tourism and village tourism will bring
more benefits to local communities even though those tourists may spend
less overall than tourists staying in larger resorts;
Encouraging a longer length of stay (e.g by developing attractions and
expanded tour itineraries);
Encouraging a higher level of expenditure (e,g by raising accommodation
standards developing handicrafts, identifying markets that yield the
highest net benefits etc,
Improving the profitability of individual business enterprises and
Increasing the proportion of the revenue from tourism that remains in
Zanzibar (e.g by encouraging greater linkages and reducing leakages
through implementation of import replacement strategies).

Local people can capture more of the revenue from an expanding tourism sector
by establishing their own accommodation, restaurants, and tour and transport
operations. For this happen , they will need help in the following areas;
-

Training (e.g business planning and operation protection of financial

interests, accommodation standards, host training etc).
Development and marketing of handicrafts;
Marketing assistance (e.g identification and targeting of markets, website
development, etc) and
Access to finance (e.g provision of grants or low interest loans for smaller
projects via community development associations and other NGOs.

APPENDIX B MARKETING STRATEGY ACTION PLAN

1. TARGET MARKETS8
Geographic Markets

Europeans accounted for 7o% of total arrivals in 2001, with the remainder
divided between North America (8.3 %), Africa (9.8%) and Rest of World (11.9%).
Within Europe, the main source markets are Italy and Britain, which together
accounted for 36% of total arrivals in 2001.
Italy
According to the 2001 International Visitor Exit Survey, Italians accounted for
48% of the persons surveyed the peak season, which, if representative of the
visitor population as a whole, would imply an over-dependence on this one
market during this season.
Having increased by 90% from 1995 to 2000, the number of Italian vision to
Zanzibar fell from 25,764 arrivals in 2000 to 14510 arrivals in 2000.
United Kingdom
Similarly, the number of British visitors fell from 16,307 arrivals in 2000 to 13,147
arrivals in 2001. These declines are attributed mainly to the adverse publicity
received by Zanzibar following the political disturbances in January, and there is
evidence of a strong recovery in most markets in 2002.
Germany
Despite its position as Europes most significant source market and Tanzanias
third most significant European source market in 1999, Zanzibar (unlike
Mombasa and other parts of Kenya) receives comparatively few German visitors.
There is an opportunities to alter this situation with the inauguration of the new
weekly condor service from Frankfurt to KIA as of November 2002. Zanzibar
needs to increase its presence in German tour operator programmes, so as to
encourage as of 2003 a stop after KIA in Zanzibar, instead of Mombasa.
Spain

Likewise, through the introduction of the Iberojet weekly charter (198 passenger
capacity) from Palma de Majorca and Madrid to Zanzibar since July 15,2002, the
number of Spanish tourist arrivals to Zanzibar has the potential to increase
considerably.
Scandinavia
Scandinavia already represents a large market for Tanzania with 330,000 arrivals
in 2001. Within Scandinavia, Sweden is the main outbound market. Zanzibar
can attract more visitors from this market. According to the recent tour operator
survey, 79% of Swedes book 2 week.

Further details on the main source markets are given in the European and United
States Market Demand Study for Tanzania (CHL Consulting Group, August
2002)
Beach and safari combinations to East Africa with Zanzibar and especially Mombasa
included as the beach component.
Switzerland
Switzerland is also an important outbound market for East and Central Africa, although,
with only 6,092 arrivals in 2001, Tanzanias share is still comparatively small.
However, with the Swiss airline now serving Tanzania with 4 flights per week there is an
opportunity for Zanzibar to further develop this market. Some 60% of Swiss travelers to
East Africa take 2- week safari and beach combination holidays, and 25 % a 2- week
beach holiday (mostly in Kenya.
France
The French market to Tanzania is also relatively underdeveloped (in part due to the lack
of direct air links). Some 26% of French visitors to East Africa a take beach and safari
combination and some 45% one week beach holiday as a single destination. While at
present, Kenyan beach resorts are mostly used, there is scope for Zanzibar to make
further inroads into this market,.
United States
Tanzania is the most popular destination in East and Central Africa in the U.S market,
with Kenya second and Botswana third. Tanzanias popularity is attributed to its
reputation of high quality safaris and abundance of wildlife. In 2001, Zanzibar attracted
about one- fifth (6.328 arrivals) of all U.S visitors to Tanzania, Future growth is likely to
be constrained by a general slowdown in U.S overseas travel in the present geo- political
climate.

Japan
There were only 570 Japanese visitors to Zanzibar in 2001, compared with 7,822 to
Mainland Tanzania.
Australasia
In 2001, Zanzibar attracted a total of 4,470 visitors from Australia and New Zealand,
making this the fifth largest market (after Italy, Britain, USA/Canada and Scandinavia)
in that year. While many of the Australian visitors are what might be termed
backpackers they tend to stay longer than the average visitor and provide valuable
business for locally owned tourism enterprises.
Regional Markets
The main regional markets for Zanzibar are South Africa (3,121 arrivals in 2001) and
Kenya (2,025 arrivals, mostly business visitors). While mainland Tanzania has limited
market potential for vocation travel from South Africa, Zanzibar (while competing with
Mauritius and the Maldives) has generated an increase in South Africa visitors for beach,
diving and fishing vacations. The East Africa expatriate market, concentrated in
Nairobi and Mombasa also offers good growth potential.
Domestic Market
The Tanzania domestic market is growing and, though presently limited in size for
Zanzibar, it has some potential for development n the short term, including Tanzania
residents with high disposable incomes; expatriate residents living in Dar es salaam and
other cities; VFRs of expatriate residents; conference and meetings; and group travel by
schools, clubs etc.,

APPENDIX C CONSULTEES IN PREPARATION OF REPORT

Hon Mohammed Aboud Mohammed

Mr. Pereira Ame Silima
Mr. Abdul Kh. Abdullah
Mr. Hamad H. Omar
Mr. Vuai M. Mohammed
Mr. Issa Mlingoti
Dr. Ahmada Hamad Khatib
Mr. Zubeir Ali Juma
Mr. Suleiman S. A
Mr. S.O. Fakih
Mbarak Salim Mbarak
Mr. Nawawi K. Vuai
Mrs. Sabah Saleh Ali
Mr. Amour A. Khamis
Mr. Muhamed Hafidh Khalfan
Mrs Khadija Ali
Mr. Saleh A. Pemba
Ms. Maria Mmari
Mr Aloyce Nzuke

Mr Hamza Rijal
Mr. J. B Alam
Mr. Mohammed Haji Ali

Mr. Juma O. Hija

Mr. Salim R. Abdulla

Minister for Tourism

Principal Secretary , Ministry of Trade
Industry Marketing and Tourism
Principal
Secretary
Ministry
of
Communications and Transport
Director of Achieves, Museums and
Antiquities
Executive Secretary, Commission for
Tourism (ZCT0
Director of Tourism Planning and
Development (ZCT)
Director of Marketing and Promotion
(ZCT)
Officer in Charge ZCT Pemba
Administrative Officer ZCT Pemba
Chief Lands Officer, Department of Lands
and Registry
District Commission, Chake chake, Pemba
Acting Principal, Hotel and Tourism
Training Centre
General Manager, Zanzibar Tourist
Corporation
Deputy Director General ZIPA
Senior Investment Office, ZIPA
Public Relations Officer, ZIPA
Director of Tourism , Ministry of Natural
resources and Tourism
Assistant Director, Tourism Development
Ministry of Natural resources and Tourism
Assistant Director, Research Statistics and
Training, Ministry of Natural Resources
and Tourism
Ecologist, Head of Natural Resources
Environmental Technologist, Head of
pollution Control
Head,
Integrated
Planning
Unit,
Department of Surveys, Urban and Rural
Planning
Planning Engineer S.F.P.C
Head, Department of Surveys and Urban

Mrs. Fatma M. Omar

Mr. Tamii M. Omar
Mr. Mwalim Khamis Mwalim
Mr. Jaffar Ali
Mr Tawakal Khamis
Mr Asha Ali Khatib
Mr Amour B. Omar

Mr Ali Said Hamad

Mr Slim Khamis Haji
Mr Fatma Mbarouk Saleh
Mr Suleiman Khamis Suleiman
Mr Ali A. Mbarouk
Mr Salim A. Khamis
Mr Saidi Juma Aali
Mr. Haji Mrisho
Mr Mwalim A. Mwalim
Mr Haroub D. Mwija
Mr Kheri Kombo
Mr Kubinga M. Simba
Mr Mabruki J. Makame
Mr Amour H. Bakari
Mr Mustafa Aboud Jumbe
Mr Yussuf Balozi
Mr Talib M. Chum
Mr Marco Van De Kreeke
Mr Thomas Haule
Mr Damian Bell
Mr Victor Shao

Planning.
Head, Department of Environment
Head of Lands Department, Pemba
Pollution Control Officer, Department of
the Environment, Pemba
Natural Resource section, Department of
the Environment, Pemba
Administration Officer, ZIPA Pemba
Coastal Ecologist
CARE
Assistant
Zanzibar
Area
Coordinator, Misali Island Conservation
Project
Manager, Misali Project
Planning Officer DCCFF Pemba
Wildlife Officer, DCCFF Pemba
Crop Marketing Officer DCCFF Pemba
Executive
Director
Misali
Island
Conservation Area
Wildlife/Eco tourism Officer Misali Island
Project
Conservation Officer, Head of Department
Land Officer, COLE
Director
General
,
Stone
Town
Conservation and Development Authority
Chairman, Zanzibar Association of Tour
Operators (ZATO)
Chairman, Zanzibar Tourist Guides
Association (ZTGA)
Vice- Chairman, ZTGA
Director, Zanzibar Municipal Council
Head, Economic Statistics Section .
Ministry of Finance and Economic Affairs
Director
General.
Zanzibar
Ports
Corporation
Planning
Officer,
Zanzibar
Ports
Corporation
Manager, Zanzibar International Airport
Airport Manager KIA
Airport Manager, Arusha Airport
Managing Director, Sokwe Ltd.
Chairman TATO
Managing Director/Operations Manager
Safari Makers Ltd.

Mr Barbara Cole
Mr Sanday Pandit
Mr Mustafa Panju
Mr Marlies Alpers
Mr Mary Lwogo
Mr Pratik Pateg
Mr Shaban Zavery
Mr Leopold Kabendera
Mr Firoz Suleiman
Mr Salim Fanmohammed
Mr A. Wissangi
Mr Andrew Kundo
Mr Mike Bridon
Mr. Andrew
Mr Robert George Mwanukuzi
Mr Caroline Scholfied
Mr Nadia Raguz
Mr Adriano Raguz Fusillo
Mr. Moyawaywo
Mr. Laurence Parkman
Mr. Nassor Ahmed Mazrui
Mr. Hassan Muhammed Said
Mr. Salim M. Suleiman
Mr. Jean Devoz
Mr. Juma Zakaria
Mr. Haroub D. Mwita

Mr. Antonella Balestra

Mr. Tim Hendriks
Mr. John Pingku
Mr. Ranjit Sondhi
Mr. Abdulaziz O. Yussuf
Mr. Mark Coppin
Mr. Amir H. Esmail
Mr. Bharti R. Ved

Marketing Manager, Safari Makers Ltd

Operations Director, Roy Safaris Ltd
Managing Director, Bush Buck Safaris Ltd
Marketing Manager, A & K Sanctuary
Lodges
Branch Controller TTB
Managing Director, Tz Photo Tours &
Safaris
General Manager, Tz. Photo Tours &
Safaris.
Marketing Manager, Tahi
Director, Sunny safaris
General Manager, Serena Hotels
General Manager Sopa Lodge
Manager, Leopard Tours
Managing Director, Masai Camp
Tropical
Trails
General Manager, Bwawani Plaza Hotel
General Manager, Breezes Beach Club
Guest Relations, Breezes, Beach Club
Dive Operator, B
Financial Controller, Breezes Beach Club
General Manager, Sultan Palace Hotel
Owner/Managing Director, Mazsons
Hotel
Executive Director, Mercurys Restaurant
Director, Zenith Tours
General Manager, Karafuu Hotel
Guest Relatiions, Karafuu Hotel
Managing Director, Zanza Tours
Chairman Zanzibar Association of Tour
Operators (ZATO)
Resident Manager, Turisanda
Managing Director, Ras Nungwi B. Hotel
Manager, Nungwi Beach Village
Managing Director, Mant Reef L. Pemba
Manager, Tembo House Hotel
General Manager, Protea Hotel, Zanzibar
Beach Resort
Manager Director, Zanzibar Beach Resort
Marketing Manager, Zanzibar Beach
Resort

Mr. Andrew S. G. Smith

Mr. Mugo Maringa
Mr. Alex Maboko
Mr. Marcello Spadoni
Mrs. Christine Henry
Mr. Mtiyaz Ibrahim
Mr. Cate Jackson
Mr. Rodney DMello
Ms. Jan Palmer
Mr. David Barker
Mr. Mubsir Ally
Mr. Mustafa Haji
Mr. Kimonge Oriyo
Mr. Martin Fine
Mr. Liesl Hyland
Mr. Mohammed A. Nathani
Mr. Peter J. Mwenguo
Ms. Jane Lyimo
Ms. Richard Rugimbana
Ms. Nassor Mwinyi
Ms. Sleman Ali
Mr. Keven Stander
Mr. Theo Van De Van
Mr. Alastair Norton-Griffiths
Mr. Geoff OGrady
Ms. Debbie Moore

Director, Bluebay Beach Resort

General Manager, Zanzibar Serena Inn
Assistant Manager, Zanzibar Serena Inn
Manager, Venta Club
Marketing Manager, Zantours
General Manager, Dhow Palace
Funda Logoon Pemba
Director Tours, Kearsley Travel & Tous
Regional Manager for Tanzania, KLM
Eastern Africa
Marketing Manager, The Safari Scene
Sales Services Manager, Swiss Airlines
Managing Director, Lions of Tanzania
Safaris & Tours
Vice Chairman TCT
Chairman HKAT
Regional Manager, Protea Hotels Tanzania
& Zanzibar
Sales and Marketing Manager, New Africa
Chairman, Tourism Confederation of
Tanzania
Managing Director, Tanzania Tourist
Board
Tanzania Civil Aviation Authority
Executive
Secretary,
Tourism
Confederation of Tanzania
Managing Director, Maha Travel & Tours
Operation Director, Maha Travel & Tours
General Manager, Sea Cliff Hotel Dar es
Salaam
Director, Matemwe Bungalows
General Manager, Matemwe Bungalows
Manager, Mnemba Island Lodge
Manager, Chumbe Island Coral Park

Delegates to Tourism Workshop 21 September 2002

Mr. Joseph Asama

Mr. Said H. Haji
Mr. Suleiman S. Hamad
Mr. Juma A. Ali
Mr. Ramadhan Othman
Mr. Bhari Ved
Mr. N. Mugheiry
Mr. Kubingwa M. Simba
Mr. Ilyas R. Nassor
Mr. Ali Amour
Mr. Iddi Amour
Mr. Khamis R. Abdalla
Mr. Mio Maringo
Mr. Mussa A. Shaaban
Mr. Sabah Saleh
Mr. Bakari S. Asseid
Mr. Makame J. Pnadu
Mr. Twalib Shaaban
Mr. Mohd Omar Ramadhan
Mr. Nawawi Kiza Vuai
Mr. Suleiman Khamis
Dr. Nariman
Mr. Mberik Rashid
Mr. Issa Mlingoti
Mr. Othman Maulid
Mr. Mabrouk J. M.
Mr. Ayoub K. Abdullah
Mr. Haroub D. Mwita
Mr. Ali Mohd Mzee
Mr. Said J. Ali
Mr. Mwakabu Mwadini
Mr. Dennis Bilal
Mr. Jane Felix
Mr. Ali Daud Ali
Mr. Abdalla Ramsa
Mr.Mark Coppin
Mr. Ramadhan Makame
Mr. Mustafa Abdulhamid
Mr. Fundi Karama

Commission for Tourism

ZIPA
ZATOGA
Radio Zanzibar
Zanzibar Leo
Zanzibar Beach Resort
ATC
Simba Tours
Zanzibar Commission For Tourism
Fisherman Tours & Travel
Labour
Commission for Tourism
Serena Inn
ZATOGA
Zanzibar Commission for Tourism
DCCFF
Land & Registrator
Commission for Tourism
UWAZI
Chuo Cha Hoteli na Utalii
Dhow Palace Hotel
Ddani Ims I. Of Marine Science
Idara ya Mazingira
Zanzibar Commission For Tourism
Zanzibar Leo
Manispaa
Commission for Tourism Pemba
ZATO
Commission for Tourism
Foresty Pemba
TVZ
TVZ
TVZ
Immigration
Protea ZBR ( Matemwe)
Zanzibar Leo
STZ
Tourism

Mr. Kheri Juma

Mr. Vuai M. Mohammed
Mr. Abdallah Khamis Ali
Mr. Hokokey
Mr. Marc Lauson
Dr. Ahmada Khatib
Mr. Mwalim A. Mwadini
Mr. Abass Khatib
Mr. Maulid H. Maulid
Mr. Khatib Suleiman
Mr. Mozza Saleh
Mr. Zubeir A. Juma
Mh. Issa Mohd
Mr. Fatma Omar
Mr. Ali Haneni
Mr. Amour Hamil
Mr. Abulla Ali
Mr. Antonela
Mr. Ali Amani
Mr. Khamis Mwita
Mr. Mohammed Haji
Mr. Maulid Said
Mr. Maabad J. Muhiddin
Mr. Nassir Khamis
Mr. Maulid Fadhil
Mr. Issa H. Kipungu
Mr. Hassan Burhan
Mr. Kheri Muhajiri
Mr. Miraji U. Ussi

ZATOGA
Commission For Tourism
Archives
Island Tours
Blue Bay Beach
Zanzibar Commission for Tourism
STCDA
K.B.V.
Radio One
Uhuru/Mzalendo
Mwananchi
WBVMU
ZCT
ZCT
ZCT
OCGS
ZCT
Monarch Tours
Shooting Star
Commission for Tourism
Dept. of Service
Daily News
Commission for Tourism
Madera Tours
Commission for Tourism
Commission for Tourism
Commission for Tourism
Commission for Tourism
Commission for Tourism