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 criticized for potentially undermining Zanzibar’s efforts to revive its tourism industry.

The gathering at Kwanza Resort included representatives from a broad spectrum of tourism organizations, 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.

The meeting, also touched on issues related to rising operational costs and inadequate infrastructure.

 These include frequent power outages and insufficient waste collection services where the Regional Commissioner (RC) said he is scheduled to meet with ZECO within the next three months to address power cut issues, while a meeting between local authorities and new waste collection companies is planned to negotiate reasonable rates for waste management.

Infrastructure improvements are also on the agenda, with the regional government committing to enhancing the Jozani area.

This upgrade aims to provide better services and a more convenient environment for tourists, including the establishment of a new service center.

Another major point of discussion was the regulation of tour operations and the control of unauthorized beach boys.

The Zanzibar Commission for Tourism (ZCT) said it would  work with investors, police officers, and local associations to find solutions to the beach boys issue, with recommendations expected in the next three months.

 Furthermore, the meeting highlighted that only registered local tour operators are authorized to conduct tours and transfers, following a recent ban on hotels organizing such activities.

Concerns were also raised about the proliferation of unregulated Airbnb operations undermining compliant hotels and increasing costs for tourists.

In response, the government has promised to address the issue of fake Maasai guides and ensure that only legitimate services are provided to visitors.