Surging tourism boosts Zanzibar economic growth

ZANZIBAR: AS Tanzania commemorates the 61st anniversary of its Union this year, Zanzibar is marking its own significant strides in the tourism sector, with the latest data revealing a robust recovery and growth that surpasses prepandemic levels.

The idyllic “Spice Island,” celebrated for its breathtaking beaches, fragrant spice farms, luxurious havens and the historic Stone Town, a UNESCO World Heritage jewel, is experiencing a robust resurgence in its tourism sector, not only exceeding pre-pandemic levels but also significantly bolstering its position as a major contribu- tor to the economy and foreign exchange earnings.

Data from the Office of Chief Government Statistician (OCGS) paints a clear pic- ture of this remarkable growth trajectory. Following a dip to 260,644 tourist arrivals in 2020, undoubtedly due to the global impact of the pandemic, Zanzibar’s tourism sector began a strong rebound. Arrivals more than doubled from 2020 to 394,185 in 2021, demonstrating the initial signs of recovery and the island’s enduring appeal even amidst global uncertainty.

This upward trend con- tinued steadily, with arrivals reaching 548,503 in 2022, sur- passing the pre-pandemic figure of 538,264 recorded in 2019. The momentum further accel- erated, with 638,498 tourists arriving in 2023, culminating in an impressive 736,755 arrivals in 2024.

This substantial increase from 2019 underscores Zan- zibar’s enduring appeal and the critical role tourism plays, directly contributing between 27 per cent and 29.5 per cent to the island’s GDP and generat- ing a significant 80 per cent of its foreign exchange earnings.

This current success aligns with the ambitious goals out- lined in the Zanzibar Development Vision (ZDV) 2050, which envisions a strong, sus- tainable, and resilient market for high-value tourism. The vision priorities attracting high-spending tourists through investment in luxury and boutique hotels and improved infrastructure, all while carefully considering the cultural and environmen- tal impact of these economic activities.

Furthermore, ZDV 2050 emphasises the diversification of tourism products beyond traditional offerings, leveraging Zanzibar’s rich natural and cultural heritage, as well as exploring commercial potential to expand the market, including the domestic segment.

The vision also strategically aims to create strong linkages between tourism and the agri- cultural supply chain, incen- tivising tourist establishments to source local products and minimise imports, thereby benefiting local farmers and businesses.

The long-term strategy also focuses on developing a high-quality local labour force with decent work opportunities, particularly for youth, through practical tourism training and apprenticeships. Moreover, ZDV 2050 champions strong local content in the tourism industry, supported by appropriate incentives and awareness programs for all stakeholders, while ensuring corporate social responsibility and investment.

Notably, Zanzibar has already surpassed one of the key targets set within the ZDV 2050’s near-term objectives. The vision aimed to increase annual international tourist arrivals from 538,264 in 2019 to 700,000 by 2025, a mile- stone already achieved in 2024. Other key 2025 targets include increasing the average length of tourist stay from 7 days (2019) to 8 days and boosting average tourist spending per day from 263 US dollars (2019) to 350 US dollars.

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The expanding tourism sec- tor has already played a crucial role in generating a significant economic surplus for Zanzibar. According to the Bank of Tan- zania (BoT), tourism-related activities have been instrumental in increasing the current account surplus to 506.9 million US dollars as of May 2024, a notable rise from 389.1 million US dollars in the previous year. This substantial economic con- tribution further solidifies tour- ism’s position as a key driver of Zanzibar’s financial well-being.

Looking ahead, the Bank of Tanzania projects the Zan- zibar economy to grow at a rate exceeding 6 per cent in the second half of 2024/25. This optimistic forecast is primar- ily fuelled by the anticipated continued strong performance of the tourism sector, alongside growth in construction and real estate.

As Zanzibar continues to attract a growing number of international visitors with its unique blend of natural beau- ty, cultural richness and warm hospitality, the strategic focus on innovation and addressing existing challenges promises to further elevate its tourism sector, ensuring sustained eco- nomic growth and solidifying its standing as a premier global destination.