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Can Zanzibar be the next Mauritius?

Category: Tourism, Posted:10 Aug 2017 | 11:57 am

C9 Hotelworks continues to work in developing marketplaces around Asia, the Pacific and Indian Ocean. Our latest report pushes into Africa and is on Zanzibar Tanzania and it’s surging resort and real estate sector.

Zanzibar is an archipelago, located off the East coast of Africa. The islands are characterized by a unique cultural heritage, numerous beaches and world famous Stone Town as its historical jewel. In 2000, the town was designated as a UNESCO World Heritage Site, which has helped gain international attention for its tourism industry. Last year, the destination recorded a total of 376,242 foreign visitor arrivals, with a y-o-y growth of 28%.

Looking at the historical trend of overseas arrivals, the island achieved a 5-year CAGR of 17%. This is largely attributed to increased airlift from direct international flights. Additionally, the destination has a pronounced seasonality trend, with the high season starting in July running to February. During this period in 2016, Zanzibar hosted more than 30,000 foreigners per month.

Currently, there are 454 registered accommodation establishments in Zanzibar, with 79% belonging to economy and midscale properties. However, with upcoming luxury hotel developments underway, the destination is expected to broaden its tourism demand spectrum to target high-spending travelers.

Two significant mega projects, Zanzibar Amber Resort and Fumba Town Development are under construction. Amber has announced two hotel projects managed by Ritz-Carlton and Anantara.

From a real estate perspective foreign ownership of landed properties for investment purpose is allowed on a 99-year leasehold term.

To download C9 Hotelworks Zanzibar Tanzania Tourism Market Review (CLICK).

 

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