Govt stresses inbound travel insurance policy importance

ARUSHA: THE Zanzibar government has insisted that the recently introduced inbound travel insurance policy was crucial and it aimed at enhancing tourist protection.

The Zanzibar government has introduced a mandatory inbound travel insurance policy on October 1, 2024, requiring all visitors to purchase the insurance for 44 US dollars for a duration of up to 92 days.

Addressing the Tanzania Association of Tour Operators (TATO) in Arusha recently, Zanzibar Finance Minister Dr Saada Mkuya explained that the initiative, developed in partnership with the Zanzibar Insurance Company (ZIC) and French insurer AXA, aims to provide comprehensive protection for tourists.

Dr Mkuya stated that collaborating with top-tier global insurers brings unmatched expertise to Zanzibar’s insurance landscape, enhancing traveller security and satisfaction while potentially boosting tourism and reinforcing Zanzibar’s reputation as a premier global destination.

She emphasised that the mandatory insurance policy reflects a sovereign decision aimed at ensuring the wellbeing of the island’s visitors. During the meeting, TATO Chairperson, Mr Wilbard Chambulo expressed concern that the policy was introduced abruptly, limiting opportunities for discussion or adjustment.

He highlighted potential issues for tourists who may already have insurance coverage and the possibility of conflicts over duplicate claims, as most travel insurance policies do not allow reimbursement from multiple sources. Mr Chambulo noted that the policy’s sudden imposition and its potential redundancy with existing coverage had not been adequately considered.

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He explained that AXA proposed this insurance scheme, with their subsidiary AXA Maroc recently approaching other countries, including Tanzania and Zambia, with similar offers.

“AXA is aware of the high levels of existing insurance coverage among tourists arriving in Zanzibar, raising ethical questions about the introduction of a redundant policy. It’s worth asking why AXA Maroc has not implemented a similar system in Morocco, which sees high tourist traffic but lower insurance coverage compared to Zanzibar,” he questioned.

TATO’s chairperson argued that many operators view the insurance as an unfair tax that damages the reputation of Zanzibar and Tanzania as a whole.

“It is prudent to assess the percentage of tourists who are already insured. If it exceeds 90 per cent, as TATO believes, this suggests that the policy may be a form of forced selling, which is unethical,” Mr Chambulo explained.

He further suggested that the insurance could be seen as a disguised tax and should be renamed appropriately, such as a “Zanzibar tribute” of 50 US dollars per adult, implemented with reasonable notice.

Overall, the policy’s sudden introduction and potential overlap with existing coverage necessitate careful reassessment to ensure fairness and transparency.

Stakeholders also voiced their issues over the weekend in Dar es Salaam during the closing ceremony of this year’s Swahili International Tourism Expo (S!TE). Tanzania Tourism Board (TTB) Chairperson, Dr Mohamed Dau expressed a desire to hear about challenges in order to improve the tourism sector.

“If you have any bad news, please share it so we can enhance next year’s festival experience. We welcome feedback to work on,” said Dr Dau.

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Minister for Natural Resources and Tourism, Ambassador Dr Pindi Chana, thanked the hosted buyers and other tourism stakeholders for their contributions to the S!TE 2024 event, highlighting their role in advancing the sector. In 2023, Zanzibar’s tourism industry saw marked improvement, with earnings rising by 7.3 per cent to 906.56 million US dollars, up from 844.97 million US dollars the previous year.

This growth can be attributed primarily to a significant increase in tourist arrivals, which surged by 21.1 per cent, from 447,959 in 2022 to 542,475 in 2023. Notably, nearly all tourism earnings—904.42 million US dollars or 99.8 per cent—came from leisure and holiday travellers.

The data suggests that by effectively catering to the holiday-seeking demographic, Zanzibar can maintain and potentially amplify its revenue growth in the coming years.