Zanzibar tourism investors alarmed by new mandatory insurance fee

Unguja. Tourism investors in Zanzibar have voiced their concerns over the introduction of mandatory travel insurance, cautioning about its potential negative impact on the industry.

At a recent stakeholders’ meeting convened by the Zanzibar Association of Tourism Investors (ZATI) at Kwanza Resort, participants expressed frustration over the lack of prior consultation and information regarding the new policy.

According to the meeting minutes reviewed by The Citizen, the abrupt announcement of the insurance fee left many associations and investors unprepared, underscoring the need for better communication and stakeholder engagement in future decisions.

In July, authorities announced that, starting October 1, visitors to Zanzibar would be required to pay an insurance fee of $44 (approximately Sh118,360).

This fee will cover them for up to 92 days during their stay on the island. Since this announcement, several sectors have raised concerns that the new policy could significantly impact the island’s tourism sector.

Critics argue that it adds an extra charge, potentially making Zanzibar less competitive compared to other destinations and deterring visitors.

The travel insurance fee has been criticised for potentially undermining Zanzibar’s efforts to revive its tourism industry.

The gathering at Kwanza Resort included representatives from a broad spectrum of tourism organisations, hotels, and government departments.

Attendees included ZATI, ZNCC, ZATO, My Jambiani, Aurora Hotel, Mr. Kahawa, Unguja Lodge, Kwanza Resort, Hello Capitano, Zanzibar Whitesands, Paradise Group Zanzibar, Genious Water Limited, Mada Hotels, African Paradise, and Lubarisho Company.

Government representatives present were from the Regional Commissioner for the South Region, DC South Region, ZCT, Ministry of Tourism and Heritage Zanzibar, ZECO, ZAWA, Ministry of Land Zanzibar, Immigration, and the Police Commissioner.

Aside from the insurance issue, the meeting also addressed rising costs, noting that Zanzibar is becoming increasingly expensive due to escalating costs and inadequate infrastructure.

Additionally, the proliferation of unregulated Airbnb operations was criticised for undermining hotels that comply with regulations and pay taxes.

Discussions also covered the permit issuance process for drivers and the regulation of tour operators. Stakeholders called for streamlining these processes and enforcing compliance with existing regulations to reduce delays and ensure fair practices.

Infrastructure challenges were a major concern, with stakeholders highlighting critical issues such as insufficient water supply and frequent power outages.

“With growing investments, these problems have become more pronounced, leading to calls for urgent government action to improve water and electricity services,” the minutes stated.