Unguja. The implementation of mandatory tourist insurance has not hindered the growing number of visitors to the Spice Islands, according to the Minister for Tourism and Heritage.
In August 2023, Zanzibar introduced a mandatory insurance policy that requires all visitors to pay a fee of $44. The policy officially took effect on October 1, 2024.
Despite concerns from some tourism stakeholders about the lack of prior consultation regarding the policy, there has been a notable rise in tourist arrivals. During a recent meeting convened by the Zanzibar Association of Tourism Investors, participants expressed worry that the fee could render Zanzibar less competitive compared to other destinations.
However, the Minister reported that since the insurance scheme’s introduction, tourist arrivals have increased by an impressive 17 percent monthly. December 2024 set a new record with 91,611 tourists visiting the island, marking the highest number ever in a single month. Previous months saw 60,731 arrivals in September, 69,860 in October, and 67,449 in November.
The Chairman of the Zanzibar Tour Operators Association affirmed that their members had not reported a decline in bookings, indicating that the insurance policy has not negatively impacted business. He noted that the number of tourists remains stable, and hotel occupancy rates are high, benefiting local residents who rent out their homes to visitors.
Concerns about potential negative impacts of the insurance policy will be assessed further down the line, as many travelers book their trips months in advance. Currently, tourism numbers are encouraging, suggesting any adverse effects might only surface later in the year.
On average, visitors spend at least $1,500 per week in Zanzibar, with hotel rates starting at $100 per night. The insurance fee is perceived as minimal in comparison to other travel expenses, including transportation costs.
While the fee may affect budget travelers, the overwhelming consensus is that it poses little barrier for the majority of visitors. Industry leaders have called for responsible management of the funds collected through the insurance scheme, emphasizing its role in enhancing safety and reducing the burden on tour operators.
Moreover, the increase in tourist arrivals has been particularly notable from European markets, though there is a call for more effort to attract visitors from Asia. Zanzibar’s policy aligns with global standards, whereby travel insurance is often a prerequisite for entry in many countries.
The tourism sector remains a crucial component of Zanzibar’s economy, significantly impacting employment and revenue. Stakeholders are committed to initiatives that boost visitor experience and safety, ensuring that the archipelago continues to attract travelers from around the world.
