In light of concerns surrounding irresponsible tourism development in Zanzibar, local tourism experts and conservationists have welcomed a crackdown on foreign investors using local citizens to register new tourism projects and businesses.
Under Zanzibars tourism regulations, the operation of tour companies and tour guiding services is reserved exclusively for Zanzibaris. The Investment Act of 2023, among other criteria, sets a minimum investment capital threshold of US2.5 million for foreign hotel and real estate investors to qualify for registration and approval. Local investors have much lower minimum thresholds of US100 000.
The Zanzibar Commission for Tourism ZCT said in a January 10 notice that it has identified instances of foreign investors using local citizens as proxies to illegally register tourism businesses and projects.
