Zanzibar’s tourism boom opens new investment opportunities
According to the Tourism Statistical Release for December 2025, Zanzibar welcomed 100,729 international visitors, a 10% year-on-year increase and a 38.3% rise from November.
For the full year, international arrivals reached 917,167, up from 736,755 in 2024, confirming a sustained upward trajectory rather than a post-pandemic rebound.
Accommodation performance points to growing capacity pressure, with bed occupancy levels reaching close to 89% in December and more than 815,000 bed nights sold in a single month. The average intended length of stay stood at just over eight nights.
Hotel expansion and global brand entry
"These figures confirm that Zanzibar is firmly in a growth phase, with longer stays and rising demand placing increasing pressure on tourism infrastructure," said Dr Aboud Suleiman Jumbe, principal secretary of the Ministry of Tourism and Heritage. "This growth creates clear opportunities for strategic investment that deepens the visitor experience while supporting national development priorities."
International hotel groups and boutique operators have responded quickly. TUI Group has expanded resort capacity in Zanzibar, positioning the island as a key pillar of its long-haul leisure strategy. Hilton has announced its entry into the Zanzibar market with a branded beachfront resort.
ENVI Lodges is developing a new eco-luxury beachfront property, and Minor Hotels is expanding its Anantara portfolio through a new signing with Infinity Group. These projects underscore rising confidence among global operators in Zanzibar's long-term appeal to high-end, experience-led travellers.
Infrastructure, transport, and beyond accommodation
Improved infrastructure is also reshaping Zanzibar's connectivity profile. Investments in airport and aviation capacity have accelerated the introduction of more direct international flights. According to Seif Abdallah Juma, director general of the Zanzibar Airport Authority, approximately 575 aircraft landings were recorded in January, slightly higher than December, reflecting sustained growth in airline activity.
While these developments underline investor confidence in Zanzibar's fundamentals, the island's tourism offer remains heavily weighted toward accommodation, with comparatively limited investment in family-friendly attractions, cultural and interpretive assets, marinas, museums, and large-scale experiential infrastructure that convert beach destinations into longer-stay, higher-spend markets.
"There is strong demand, but the depth of product has not yet caught up with the volume of arrivals," said one investment advisor active in East Africa. "That gap creates an opportunity for investors who are looking beyond hotels and towards experiences that lengthen stays and diversify spend."
Rising demand is also reflected in transport and logistics investment. Azam Marine, the region's leading ferry operator, has commissioned Kilimanjaro Number 9, a high-capacity passenger vessel representing an investment of USD 12.9m. The vessel carries over 600 passengers per trip, operates up to 13 sailings a day, and services key routes between Dar es Salaam, Unguja, and Pemba.
"In island economies, transport capacity is a leading indicator," said a senior executive at Azam Marine. "You do not invest at this scale unless you have confidence in long-term demand."
Investors are also exploring opportunities beyond traditional tourism assets, particularly in eco-tourism and forestry-linked developments. Zanzibar has 11 officially designated forest conservation areas, of which six have already attracted investment interest, signalling growing appetite for projects that combine conservation, sustainability, and nature-based tourism.
Government officials say the current moment represents a strategic window for early-stage investment into the next phase of Zanzibar's tourism development, particularly in attractions, cultural infrastructure, family experiences, eco-tourism, and integrated leisure developments that complement the rapid expansion of hotel capacity.
"We are actively encouraging investment that adds depth, diversity and resilience to Zanzibar's tourism offering," Dr Jumbe said. "Investors who come in now have an opportunity not only to benefit from growth, but to help shape the destination's tourism landscape for the next decade."
With demand indicators rising, global brands committing capital, air connectivity expanding, and transport capacity scaling up, Zanzibar is approaching a point where early movers in experiential, cultural, and sustainable infrastructure are likely to set the benchmarks that follow.