THE UNITED REPUBLIC OF TANZANIA

INDICATIVE TOURISM MASTER PLAN

FOR

ZANZIBAR AND PEMBA

FINAL REPORT

JANUARY 2003

40 Northumberland Ave. Dun Laoghaire. Co. Dublin Ireland:

Telephone + 353 1 284 4760: Fax + 353 1284 4775:

Website: www.chl.ie: E-mail: mail@chl.ie.

CONTENTS

Section Page

1. INTRODUCTION 5

2. EXECUTIVE SUMMARY 6

3. TOURISM’S ECONOMIC SIGNIFICANCE 10

4. TOURISM IN ZANZIBAR TODAY 13

4.1 STRUCTURE OF THE TOURISM SECTOR 12

4.2 INSTITUTIONS 13

4.3 DEMAND CHARACTERISTICS 14

5. ZANZIBAR’S MARKET PERFORMANCE 16

5.1 COMPETING DESTINATIONS 16

5.2 MARKETING EXPENDITURE 17

5.3 EXPOSURE IN TOUR OPERATOR CATALOGUES AND WEBSITE 19

6. TOURISM ATTRACTIONS ACCESS AND INFRASTRUCTURE 22

6.1 TOURIST ATTRACTIONS 22

6.2 UNGUJA 22

6.3 PEMBA 24

6.4 INFROMATION INTERPRETATION CENTERS 25

6.4 CIRCUIT EXTENSIONS 26

6.6 ACCESS AND INFRASTRUCTURE 26

6.7 ZANZIBAR PRODUCT SWOT ANALYSIS 27

7. SERVICE STANDRDS, TRAINING NEEDS AND FACILITIES 30

7.1 IMPORTANCE OF TRAINING 30

7.2 PROFILE OF EMPLOYMENT 30

7.3 TRAINING NEEDS 31

7.4 TOURISM TRAINING FACILTIES 32

7.5 IMPROVING SERVICE STAMDARDS 33

8. ENABLING ENVIRONMENTS 35

8.1 INSTITUTIONAL ARRANCEMENTS 35

8.2 LEGAL FRAMEWORK 36

8.3 ENVIRONMENT FOR ENTERPRISE DEVELOPMENT 38

9. DEVELOPMENT POLICY GUIDELINES 39

9.1 THE FUTURE CHARACTER OF TOURISM IN ZANZIBAR 39 9.2 TOURISM POLICY AND PLANNING FOR ZANZIBAR 40 9.3 SMALL OFFSHORE ISLANDS 44 9.4 ECO-TOURISM DEVELOPMENT 44 9.5 THE LAND LEASE PROBLEM 45 9.6 RECOMMENDATIONS FOR ACTION 46 9.7 TOURISM AND THE ENVIRONMENT 48 9.8 PROTECTED TERRESTRIAL AREAS 49 9.9 CULTURAL SITES 50

10 MARKET PRODUCT POTENTIAL AND GROWTH 51 PROJECTIONS

11 MASTER PLAN STRATEGY 53 12 ACTION PROGRAMMES 56 12.1 IMPROVING KNOWLEDGE AND KNOW-HOW 56 12.2 ATTRACTING CAPITAL INVESTMENT 56 12.3 ENHANCING AND EXPANDING THE TOURISM PRODUCT 57 12.4 IMPROVING SERVICE STANDARDS 58 12.5 IMPROVING ACCESS, TRANSPORT AND INFRASTRACTURE 60 12.6 IMPROVING SECURITY 61 12.7 CREATING GREATER MARKET AWARENESS 62 12.8 STRENGTHENING INSTITUTIONS & ECONOMIC LINKAGES 62 13 ACTION PLAN IMPLEMENTATION 65 13.1 POLICY ISSUES 65 APPENDIX A ECONOMIC IMPACT OF TOURISM 71 B MARKETING STRAGEGY AND ACTION PLAN 89 C CONSULATES IN PREPARATION OF REPORT AND 101 WORKSHOP PARTICIPANTS

1. INTRODUCTION The Indicative Tourism Master Plan for Zanzibar has been prepared to assist the Government of Zanzibar to assess the evolving tourism industry on the islands of Unguja and Pemba and to provide guidance in the development of tourism activities for the forthcoming ten years from 2003 to 2013. The purpose of this indicative plan has been to appraise where the tourism industry stands in the year 2002 and evaluate in what direction it will develop if the existing circumstances prevail. The plan takes into account the desires of government and stakeholders, the institutional structure, the environmental constrains and cultural diversity of the islands. It makes recommendations for interventions and cultural diversity for sustainable tourism development which will result in long-term benefits for Zanzibar and its inhabitants. Zanzibar has suffered in recent years as a result of political problems and the subsequent withdrawal of various donors funding. This has had a direct result on the developing tourism industry especially in the areas of improving training opportunities for local people, infrastructure, development planning and environmental protection. Zanzibar is clearly not achieving the high quality tourism investments it seeks, and if it wishes to achieve its planned objectives, fundamental changes must take place and tourism development planning must be placed at the top of the political agenda. Unfortunately the type of tourism Zanzibar attracts at the moment is to a greater extent of low quality but with a high environmental impact. This plan seeks to reverse that trend and create a solid foundation for Zanzibar’s tourism industry. In itself this indicative plan cannot be all encompassing, but it does make recommendations as to where further inputs and evaluations are required in order that the objectives of the plan can be achieved. A number of the recommendations made in this plan are not directly tourism related, but are essential components in developing a sustainable tourism industry in Zanzibar. Outlined in the plan are recommended actions to put in place new infrastructure and to repair and upgrade existing infrastructure which not only serves the tourist industry directly, but is essential to maintaining the islands environmental quality, improving the quality of daily life for islanders and assisting with development of other economic activities besides tourism. It is therefore anticipated that this plan will help other donor organizations to identify and prioritise their investment programmes over the coming years.

2. EXECUTIVE SUMMARY Zanzibar receives in the region of 80,000+ foreign tourists annually and this accounts for approximately 15% of GDP. In 2001 Zanzibar earned approximately $46 million in foreign exchange earnings from international tourism. Tourism is one of the principal industries that underpin the Zanzibar economy. However, the quality of tourism Zanzibar receives does not meet that expected by the Government who wish to promote Zanzibar as an up-market destination to compete with other island destinations in the Indian Ocean region. Unfortunately, the current trend for tourism development is based on low quality, low spending clients, with some notable exceptions e.g. blue Bay Hotel and Breezes Beach Club. If Zanzibar is to maximize its tourism resources and avoid the boom bust syndrome associated with low quality and mass tourism, then it must take the necessary decisions and actions to reverse this current trend. Many of the problems can be attributed to weaknesses in the planning system and through poor land leasing decisions and management. This has been instrumental in the proliferation of low quality enterprises that cater for the lower end of the tourism market. If Zanzibar is to raise its standards then the planning system that governs tourist zones and reform of the land lease system will be required. A major drawback to attracting quality development is the poor quality of infrastructure that serves the tourist zones. High investment is needed in developing and improving roads, waste disposal systems, potable water systems, electricity supply etc. Resources required for completion of all work for islands is not available therefore there is a need to plan and programme new development in selected areas in order that high standards can be met. The Northern and South Eastern Tourist Zones in Unguja and Northern and Western Zones in Pemba will take Priority. A more proactive approach to planning and attracting investment must be taken rather than waiting for investors to approach, ZIPA and other Government agencies must be more active in seeking Zanzibari, Tanzanian and international investors who are able and willing to invest in tourism development of the highest international standard, improved master planning and creation of a ‘land bank’ will greatly assist in this approach. Co-operation and a working relationship needs to be nurtured between the public and private sectors in the areas of marketing and training and an appropriate method of improving dialogue between the stakeholder groups

must be developed in order that problems can be aired and dealt with in an efficient manner. The formation of a Zanzibar Hotel and Tourism Association and the establishment of a Tourism Advisory Board are two mechanisms that need to be established as a priority. In order to meet the needs of a growing tourism industry that is able to provide a quality service, there is a need to train local people in all areas of hotel and tourism service management. Investment in training both formally and ‘on the job’ will be required to maintain high standards and provide employment opportunities especially to young Zanzibaris. Maintaining environmental integrity is important for the long-term sustainability of tourism. This concerns many wide-ranging issues and actions that have a negative impact on the environment as a whole. Most important is the maintenance of high environmental quality in the coastal zone. Many people earn their livelihoods from the marine resources. Competition is high and the need for an Integrated Coastal Zone Management Plan based on public and stakeholder participation for Unguja and Pemba should be placed high on the agenda. The impact of tourism on the Zanzibari culture is a concern that has been expressed by many and none more so than its impact in Stone Town. Social impact can be managed successfully but actions and guides need to be put in place through the determination of limits of acceptable change and carrying capacity. Stone Town is the jewel in Zanzibar’s crown and central to its tourism industry. Further study is required in order that the limits of change can be determined. It has been widely recognized that the development of tourism on Pemba requires an ecotourism approach which is sensitive to the social and environmental conditions that prevail. This plan must be developed through a public participation process in order to ensure that the local island population has a say in where, how and when development should take place, and ensure that local people have the opportunity to reap the benefit of tourism and ensure the unique land and marine environment is not compromised. An action plan is required to implement the recommendations made in the tourism plan. There is a need for priority actions to be determined in order to achieve the goal of developing a high quality and sustainable industry which benefits the Zanzibar people as a whole. The local economic situation dictates that a number of these actions cannot be undertaken with the limited resources available and therefore there will be a need to approach various donors for assistance.

The priority actions for the years 2003-2005 are outlined in the table below. Table 1 Summary of Recommended Priority Actions 2003-2005. Programme Actions Improving Knowledge and Know How •Tourism Satellite Accounts

•Statistical database Attracting Investment Capital • Overhaul tourism tax and fee regime

for tourism sector • Review land leasing regulations • Create Land Bank and promote sites to investors • Review existing non active leases and withdraw sites as required. • Increase promotion activities.

Improving Service Standards • Establish Tourism Training Advisory Committee. • Formulate manpower training policy plan • Scholarships for young Zanzibaris entering hotel management • Hotel and tourism management training •Customer care training for police officers customs and immigration officials • Training courses for tour guides • Upgrading and expansion of HTTC • Train the trainer programmes started •Initiate public awareness campaigns

Improving Infrastructure •Develop integrated solid waste disposal plans •Seek investment for solid waste disposal facilities.

Improving Access • Improvements to Zanzibar Airport • Improvements to Zanzibar Port

facilities for tourism traffic

Improving the Product • Adopt Tourism Policy Statement • Provide resources and increase

institutional capacity of development planning

• Complete planning schemes for

tourist zones • Direct infrastructure development

to selected zones. • Introduce completion bonds for

land leases • Remove low grade developments

• Introduce accommodation development fund

Tourism development Pemba • Eco-tourism Plan for Pemba

Environmental Protection • Strengthen planning and environment units

• Develop whole island (Unguja and Pemba) Coastal Zone Management Plans.

• Provision of fisheries protection vessels.

• Provide permanent anchor buoys in sensitive areas

• Protection of marine species.

Creating Greater Market Awareness • Formulate marketing strategy

• Revising and updating web based advertising.

Strengthening Institutions and Economic Linkages

• Establish Zanzibar Hotel and Tourism Association

• Establish Tourism Advisory Board

Cultural Awareness • Undertake carrying capacity study for Stone Town.

• Improvements to interpretation and information at cultural sites

• Develop closer working relationship between Commission for Tourism and Ministry of Education Museums and Archives

Improving Security • Increase police presence in Stone Town and at air and sea ports

Developing linkages with Other Sectors

• Identify and promote links between tourism and other economic sectors

• Promote local products to tourists

3. TOURISM’S ECONOMIC SIGNIFICANCE The economic impact of tourism is commonly measured in terms of its contribution to Gross Domestic Product, foreign exchange earnings, employment and government revenues. Tourism also has the potential to forge strong linkages with other economic sectors and to bring substantial economic benefits to local communities. Accurate measurement of these factors requires sophisticated techniques and data that are still being developed by the Commission for Tourism and the Department of Statistics as part of the overall Tanzania Tourism Sector Survey. Currently, there are no official estimates of the tourism contribution to Zanzibar’s GDP. Indeed, the tourism sector, which is assumed to be largely embedded within the Wholesale and Retail Trade and Restaurants and Hotels sub-sector, is not yet separately identified in the system of national accounts used in Zanzibar and the mainland. Among the difficulties are that tourism-related activities are to be found in other sectors such as transport and commerce as well as the hotels and restaurants sub-sector (which is often assumed to be coterminous with the tourism sector), and that the goods and services provided by tourism establishments are consumed by local residents as well as international and domestic tourists. To overcome these difficulties, the recommended practice adopted in other countries (and being implemented in Tanzania) is to establish a ‘satellite account’ for the tourism sector within the system of national accounts. At present, two surveys are in progress – one a Visitor Exit Survey and the other a Survey of Tourism Establishments – which will lead to the provision of improved data on the economic significance of tourism In Zanzibar. These surveys are being carried out under the supervision of a Working Group comprising representatives from the Ministry of Natural Resources and Tourism, the Bank of Tanzania, the National Bureau of Statistics, the Immigration Department and the Zanzibar Commission for Tourism. The estimates that follow are based on available data and should be regarded as preliminary and subject to revision once more detailed analyses are completed. Further details are given in Appendix A. Contribution to GDP Tourism already makes a significant contribution to the economy of Zanzibar. It is provisionally estimated that the sector accounted for about 14% of GDP in

2001, compared with 12% for Tanzania as a whole. This contribution is projected to increase to around 21% by 2012. Foreign Exchange Earnings According to the preliminary results of the International Visitor Exit Survey (carried out over the period July 30-September 15,2001), Zanzibar earned some $46 million from the spending of International tourists in 2001. To this must be added an allowance for the spending of tourists traveling to Zanzibar on internal flights (who are not presently covered by the official statistics). This raises total visitor expenditure to $55 million in 2001. Allowing for the imports from foreign countries that are utilized by the tourism sector, net foreign exchange earnings from tourism are estimated at $46 million in 2001. This figure is projected to increase to some $116 million by 2012. Even allowing for leakages on imports, it is clear that tourism is a most important sources of foreign exchange, and helps considerably to offset the trade deficit which widened from $51 million in 1997 to $86 million in 2000, reducing to an estimated $50 million in 2001. Contribution to Employment While there exists no official data on the employment generated by the tourism sector, it is estimated that currently some 5,800 persons are directly employed by the tourism industry in Zanzibar, of whom approximately 4,400 persons (76%) are employed in the hotel/guest houses sub-sector. The remainder is employed in tourist restaurants, tourist shops, ground tour operators, airlines (state-owned and private), the Commission for Tourism and other tourism-related government departments or as tour guides. In addition to those directly employed in the tourism sector, there are many more-perhaps, as many again, who derive part or all of their employment from supplying goods or services to hotels, restaurants, etc, or who otherwise benefit from the spending of persons who are directly or indirectly employed in tourism. Thus, total tourism-generated employment in Zanzibar could presently be in the order of 37,000 jobs or full-time job equivalents. This number should further increase to around 48,000 jobs by 2021, if, as is hoped, the tourism sector returns to a path of sustained growth. Indeed, Zanzibar Vision 2020 envisages that as much as 50% of all jobs in the modern sector could be provided in tourism and the free zones by 2020.

Contribution to Government Revenues The tourism sector makes a substantial contribution to government revenues through the wide range of fees, licenses and taxes levied on the sector. While precise figures are not yet available, it is estimated that for 2001 receipts from the tourism sector amounted to some Tsh. 8 billion, representing almost one-fifth of total government revenues in that year. By 2012, this contribution could increase to Tshs 21 billion. A strong case can be made for returning a certain fixed percentage of these revenues to the ZCT for tourism development and promotion. Investment Since the mid-1980s, a total of some $57 million has been invested in hotel and tourism projects facilities by the Zanzibar Investment Promotion Agency (ZIPA), plus a further $6.6 million in 214 smaller tourism projects facilitated by the Commission for Tourism.

4. TOURISM IN ZANZIBAR TODAY

4.1 STRUCTURE OF THE TOURISM SECTOR Despite its considerable potential, the tourism industry in Zanzibar is relatively small, as shown in Table 2. Table 2 Structure of the Tourism Sector 2002 Category Units Total Rooms International

Standard*

Hotels/Guest Houses

173 3,089 About 1,200

Restaurants** 40 19 Tour Operators 128 Tour Guides 325 * Mainly used by international tourists **International standard outside of hotels Source: Commission for Tourism According to figures compiled by the Commission for Tourism, there are currently 173 tourist accommodation establishments in Zanzibar, with a total of 3,089 rooms and 6,159 beds. The great majority are located in Unguja, with only 14 establishments (with a total of 110 rooms and 214 beds) in Pemba. In 1998, less than one-fifth of all beds were in 4 or 5 star properties, and a further one fifth in 3 star properties. Most properties (123 out of 173), and 37% of all beds in 1998,are in unclassified establishments. This implies that the bulk of tourism accommodation-probably as much as 60% of the total – is suitable mainly for budget travelers or backpackers. This does not conform with the stated wish to develop Zanzibar as an up-market destination. There has been relatively little new investment in the accommodation sector in recent years and, notwithstanding the large number of projects that have been approved by ZIPA, only one major project (which will add another 400 rooms by 2004 and a further 200 rooms in a second phase), is presently under construction. Outside the hotels, there are approximately twenty restaurants of international standard, with several new high quality establishments opened in Stone Town in the past few years.

In addition, there are 128 licensed ground tour operators, of whom approximately half were at one time members of the now defunct Zanzibar Association of Tour Operators. Despite the large number of licensed operators, this sector is dominated by a comparatively small number of major companies, which account for the bulk of the business. There are also a very large number of tour guides – both official and unofficial. Some 325 tour guides have been licensed by the Commission for Tourism, of whom sixty or so are members of the newly-formed Zanzibar Tourist Guides Association (ZTGA). In addition, there are others acting unofficially, or posing as, tour guides, some of whom appear to have come into possession of official tour guide identification badges. In order to get a more complete picture of the present structure of the tourism sector in Zanzibar other category sectors should be added, such as dive operators, scheduled and charter airlines, tourist shops, taxi drivers and others who derive part or all of their incomes from tourism. 4.2 INSTITUTIONS The following institutions are presently involved in Zanzibar tourism: Public Sector

• Ministry of Trade, Industry, Marketing and Tourism The Ministry is responsible for tourism policy and governs the Commission for Tourism as the executing agent.

• Ministry of Communications and Transport-Department of Aviation

The Ministry is responsible for the management of the Zanzibar International Airport

• Zanzibar Ports Corporation

The government corporation took over the Zanzibar ports in 1997. the Board of Directors of the corporation is made up of active government officials, retired civil servants and retired national forces officers

• Zanzibar Commission for Tourism

This organization has been responsible for tourism since 1996. Headed by an Executive Chairman, and Executive Secretary, a Director for Planning and Administration and a Director for Marketing and Promotion- all four positions are appointed by the President. The ZCT in Unguja has 61 staff

plus 19 staff in the Pemba office. The ZCT has two information offices-one at the harbour and one at the airport.

• Zanzibar Hotel Tourism Training Centre

Established in 1992 with UNDP/ILO assistance and has a staff of 56, which includes 11 Instructors. The principal reports to ZCT.

• Zanzibar Tourist Corporation

The government owned corporation headed by a General Manager. It has three small (eight roomed) budget class hotels in Pemba and a ground tour operation which entails two old buses in Unguja.

• Zanzibar Investment Promotion Agency

ZIPA has been controlled by the Ministry of Finance as a statutory body since 1991. It is headed by a Director General and has a total staff of around 60 persons. ZIPA acts as a one-stop-shop for foreign tourism investors, while ZCT deals with local investors. Private Sector Organisations

• Zanzibar Association of Tour Operators

• Formerly had 61 members but has not been active since 1997.

• Zanzibar Tourist Guide Association The ZTGA has 60 members and has been in existence since 2001. with around 325 tourist guides recently licensed by ZCT, ZTGA lacks influence in its field of work.

4.2 DEMAND CHARACTERISTICS. Tourist Arrivals According to statistics compiled by the Commission for Tourism, a total of 76,329 tourists visited Zanzibar in 2001, compared with 97,165 in 2000 – a decrease of 21%. The decrease was due partly to the adverse publicity received by Zanzibar following the civil disturbances in January 2001 and partly to the worldwide downturn in tourism following the events of 11th September 2001. In contrast, arrivals in Pemba (included in the overall total) increased from 4,290 in 2000 to 6,129 in 2001. These figures exclude domestic tourists visiting Zanzibar from the mainland as well as foreign tourists arriving in Zanzibar on internal air services. The

true number of tourists visiting Zanzibar could consequently be considerably greater than the official statistics suggest. Tourist arrivals and recent trends by main market area are shown in Table 3.

Table 3 Tourist arrivals by nationality 1995 – 2001

Europe

Britain

Other Europe

Total Europe

North America

Other Africa

Rest of World

Total

1995 8,922 10,391 18,882 38,195 4,804 6,680 6,736 56,415

1996 13,502 11,909 23,669 49,080 5,682 6,388 8,009 69,159 1997 19,583 14,884 26,471 60,938 7,603 8,022 9,932 86,495

1998 23,505 13,765 25,152 62,422 7,699 6,293 10,041 86,455 1999 23,279 14,141 24,939 62,359 6,745 6,367 11,447 86,918 2000 25,764 16,307 29,368 71,439 7,757 8,718 9,251 97,165 2001 14,510 13,147 25,738 53,395 6,328 7,500 9,106 76,329 Source: Commission for Tourism Where do they come from? Europeans accounted for 70% of total arrivals in 2001, with the remainder divided between North America (8.3%), Africa (9.8%) and Rest of World (11.9%). Within European, the main source markets are Italy and Britain, which together accounted for 36% of total arrivals in 2001. According to the international Visitor Survey, Italian accounted for 48 of the people surveyed during the peak seasons, if representative of the visitor population as a whole, would imply an over-dependence on this one market during this season. Purpose of visit There exists no breakdown of arrivals by of visit but the great majority are believed to be holiday/leisure visitors. How do they come? In 2001, some 53% of all tourists arrived by air and the remaining 47% be sea. Cruiser ships made a total of 29 call with a total of 4,857 passengers, compared with 42 calls and 9,949 passengers in 2000.

How long do they stay? The average length of stay for all categories of visitors is estimated from the 2001 Visitor Exit Survey to be five nights (for the peak season only). When do they come? In 2000, 44% of all visitors came in the period July to October inclusive, compared with only 13.5% in April – June. The peak months for the Italian visitors are July/August and December. Because of the pronounced seasonality, and the fact that many properties close for several months during the low season, average hotel room occupancies were probably not much more than 40-45% in 2001. this contributes to lack of profitability and lack of investment and highlights badly needed product development and refurbishment. How much do they spend? The average daily expenditure was estimated at $120 per person for 2001 (based on the International Exit Survey for the peak season). This figure may also need to be revised when additional information becomes available.

5 ZANZIBAR’S MARKET PERMORMANCE

5.1 COMPETING DESTINATIONS Compared with other destinations in eastern and southern Africa, Zanzibar receives a very small market share. For example, in 1998 (according to WTO statistics), Zanzibar received less than one-quarter of the number of persons who visited Reunion, less than one-fifth of the visitors to mainland Tanzania and less than one-sixth of visitors to Mauritius. Details are shown in Table 4. Table 4 International Tourist Arrivals in sub-Saharan Africa (Selected destinations), 1998 Destination International Tourist

arrivals, 1998

Number (‘000) % share

South Africa 5,981 47 Zimbabwe 1,600 13 Kenya 951 8 Botswana 740 6 Mauritius 558 4 Namibia 560 4 Tanzania (incl. Zanzibar) 447 4 Reunion 377 3 Zambia 362 3 Swaziland 325 3 Uganda 238 2 Malawi 205 2 Seychelles 128 1 TOTAL 12,344 100 Zanzibar (86) (0.7)

Source: World Tourism Organisation The number of visitors to Zanzibar is also very small compared with competing island destinations in Caribbean which, with in many cases a more limited tourist product confined largely to beaches, enjoy high standards of living due many to their highly developed tourist industries. For example, in 2001, Barbados, with a population of around 300,000 attracted some 545,000 stay-over tourists, and 533,000 cruise passengers, generating a total of US$ 700 million in foreign exchange earnings.

Based on tour operator research, the structure of the European long-haul market to sub-Saharan Africa is estimated to be

• 15% beach holidays only;

• 40% beach and safari • 16% single destination safari/sightseeing • 17% dual/multiple destination safari/sightseeing; and

• 12% soft adventure As Zanzibar has neither a developed safari/wildlife product nor, apart from Stone Town, a major sightseeing product, it is currently largely confined to promotion of the beach and Stone Town product which, as is illustrated by the market research findings, only one part of the experience demanded by visitors to Eastern Africa. On the other hand both Unguja and pemba can capitalise on the high percentage of travelers wishing to combine a beach destination with their mainland safari by expanding the range of attractions and activities available in Zanzibar. 5.2.1. MARKETING EXPENDITURE While the Promotion of Tourism Act 1996, foresees under Part V Funds of the Commission inter alia ‘such sums equivalent to 35% collected by the Revenue Board or any other collector from levy imposed under the Hotel Levy Act 1995 or any substitute legislation’ (i.e. the 20% VAT) – the Zanzibar Commission for Tourism has received inadequate marketing and promotion funding since the inception of the 1996 Act. The proposed and approved marketing and promotion budget has only been 25% actually funded for the past three years as follows: Table 5 Approved Marketing Budget 1999 – 2002 Year Approved Real Allocation %

1999/00 505,000,000 15,000,000 3%

2000/01 441,637,000 176,777,867,60 40%

2001/02 288,578,000 122,246,519,00 42%

Total Tshs 1,235,215,000 314,024,386,60 25%

Source: Zanzibar Commission for Tourism The approved Zanzibar ZCT marketing and Promotion Budget 2002/3

Table 6 Breakdown of Marketing and Promotion Budget 2002/3 Tshs € @ 950 Tshs %

1. The internet (hosting, registration, domain name etc.)

1,278.000 1,345 (0.6%)

2. Printing and publication of the promotional material

80,630,000 84,874 (40.2%)

3. International tourism fairs exhibitions

60,720,500 63,916 (30.3%)

4. familiarization workshops and seminars

16,488,000 17,356 (8.2%)

5. Promotional workshops and seminars

16,227,000 17,082 (8.1%)

6. Journalists and mass media from abroad

2,400,000 2,526 (1.2%)

7. Radio and Television Programmes 374,400 394 (0.003%) 8. Paid advertisements and public relations

5,000,000 5,263 (2.5%)

9. Promotion through sports and events

12,600,000 13,263 (6.27%)

10. Study tours and special training 2,400,000 2,526 (1.3%) 11. Public merit (special incentives) 2,400,000 2,526 (1.3.%) Total Tshs 200,517,900 €211,071 (100%)

However, the ZCT expects to only receive about 40% to maximum 50% of the budgeted amount, i.e. Tshs 80 to 100 million. Promotional Material While 40% of the 2002/2003 budget is allocated to promotional material, from last years budget the following were produced: • Zanzibar – The Ultimate Tropical Destination (2001), a 52 page brochure

designed and printed in Dar-Es-Salaam; • Zanzibar – Accommodation Guide 2001 – 02, a 20 page coloured brochure

with fact file and listing hotels and guesthouses with current rates; • Zanzibar- Tours and Excursions Guide 2001 – 02, a 20 page coloured brochure

with fact file and listing the tour descriptions, tour operators and dive operators;

• Zanzibar- Food and Shopping Guide 2001 – 02, a 20 page coloured brochure, with fact file, listing of shops and restaurants;

• Zanzibar – Travel and Trade Directory 2002, a 50 page colour brochure, with fact file, Stone Town, events calendar, listings of hotels and guesthouses, restaurants, tour operators and tourism related enterprises. About 50% of the brochure is made up of advertisement;

• Posters with scenes of Zanzibar, printed in Dar Es Salaam. • Annual calendar in Swahili A review of the promotional material is as follows: • Print and photo quality not of international standard;

• Dating (2001/02) and rates in brochures requires a reprint each year; • Repetition of contents in the different brochures; • Brochures too long and thus heavy for mailing and transport to trade fairs,

etc; • Poster images not attractive and of inferior quality;

• Low stocks of all promotional material on hand; • Listing partly incorrect in relation to contact telephone numbers etc. Trade Fair Participation ZCT participates in the Tanzania stand, as does each private sector company, for a contribution of US$ 1,800 per fair in the past and US$ 3,000 in the future. This is due to the number of public sector participants at the trade fairs. The cost per fair for the ZCT is in the region of US$ 8,000 to US$ 10,000. 5.3. EXPOSURE IN TOUR OPERATOR CATALOGUES AND WEBSITE Tour Operator Catalogues As per the tour operator survey (Market Demand Survey for Tanzania, August 2002) with programmes to east and central Africa destinations, the following inclusion of destinations were found: Table 7 Market Demand – US Tour Operators Destinations % of Operators Destination % of Operators Tanzania 100 Zanzibar 60

Kenya 100 Zimbabwe 50 Malawi 30 Namibia 50

Zambia 40 Uganda 40

Botswana 50 Mozambique 10 Madagascar 10 *dropped considerably since the year 2000 70% of the tour operators interviewed considered the tour programme Serengeti/Ngorongoro and Zanzibar to be popular, whereas 20% found Kenya Beach and Serengeti/Ngorongoro to be popular. While the US tour operators sell Zanzibar, most of their market is not looking for beach holidays, instead they are more interested in small and mid-scale character filled hotels in Stone Town. Table 8 Market Demand – European Tour Operators Destinations % of Operators Destinations % of Operators

Tanzania 84 Zanzibar 76 Kenya 79 Zimbabwe 57 Malawi 39 Namibia 51 Zambia 45 Uganda 39 Botswana 55 Mozambique 20

Madagascar 8 Sudan 5 Ethiopia 12 Indian Ocean

Islands 5

69% of those tour operators interviewed found Serengeti/Ngorongoro and Zanzibar to be popular programmes while 17% opted for Serengeti/Ngorongoro and Kenya beach.

• Italian Tour Operators Zanzibar is extensively covered by Africa Explorer, Francorosso, Turisanda, Africa safari club etc. in the Italian market. This is due to the direct charter flights selling mainly beach holidays with optional safari trips to the mainland. • United Kingdom Tour Operators Of the UK tour operators interviewed 12 included Tanzania while 11 had Zanzibar in their catalogues. An estimated 43% of British holidaymakers book 2 week safari and beach combinations. • German Tour Operators Tanzania is in 8 of the catalogues of interviewed tour operators, however, Zanzibar is only available with a limited offer in some of the progremme, i.e. • TUI : Northern Circuit Safari and Mombasa Beach

• Meiers Weltreisen: Northern Circuit Safari and Mombasa Beach

• Airtours: Northern Circuit safari and Zanzibar (Mnemba Island and Serena Inn)

• Best of Africa: Safaris and Zanzibar (Breezes, Bluebay, Sau Inn ) • Reiseservice Africa: Safari, Kilimanjaro and Zanzibar (Serena Inn, Breezes,

Mnemba Island) • Studios: Safari and Zanzibar (Breezes, Serena Inn) • French Tour Operators

From the tour operators surveyed 4 had Tanzania in their programme, while 2 included Zanzibar. An estimated 50% of French tourists book safari only. The most popular combination is Kenya beach and Serengeti/Ngorongoro.

• Swiss Tour Operators Of the Swiss tour operators interviewed, 6 had both Tanzania and Zanzibar in their catalogues, some 25% take 2 week beach holidays in Kenya, while 60% book safari and beach combinations.

• South African Tour Operators

Tanzania and Zanzibar are increasingly being included in tour operator catalogues in the South African market, while Zanzibar as a beach destination has to compete with other Indian Ocean island destinations.

Website Exposure The ZCT website www.zanzibartourism.net covers 30 pages with the following sub sections. • Travel Tips • Filling and Photo

• Geography • Visitors Trend

• Governance

• Commission for Tourism • Short History • Alternative links • Getting to Zanzibar

• Where to Stay • Tour Programmes • Events Due to lack of funds the present website was developed locally in April 2000, it has had, however, in the meantime 17.914 hits, i.e. an average of 20 per day. The last update was on May 15, 2000.

The presentation format and content needs revision with regard to the visitor age and sex groups data, tourist numbers for the past 10 years and per month. Tasks and organigramme of the ZCT etc. is of no interest to the visitor. Four of the nine alternative links are no longer in use. The sections on where to stay and tour programmes offer no direct links. Pemba lacks sufficient coverage.

6. TOURIST ATTRACTIONS, ACCESS AND INFRASTRUCTURE 6.1. TOURIST ATTRACTIONS Tour attractions, together with access, accommodation and other services, are the main features that distinguish one tourist destination from another. Visitors select a destination mainly because of its primary attractions i.e. attractions that have significant appeal and drawing power. When they have made their decision to come to Zanzibar, the objective should be to get visitors to stay as long as possible and to encourage them to spend as much as possible during their visit by providing a wide range of secondary attractions i.e. additional things to do and see. Because of its richly evocative name, Zanzibar already has a head start in the minds of most travelers. This is augmented by its historical and cultural legacy, tropical climate and idyllic beaches and islands. The main primary and secondary attractions are further described and appraised in the following paragraphs. 6.2. UNGUJA Primary Attractions Stone Town Stone Town, with its wealth of historical buildings and traditional Swahili culture, is Zanzibar’s key, unique attraction. The objective should be to make it more attractive as a centre for tourism activity, both as a base of operations for tourists staying at hotels and guest houses in the old town itself and as a place for day visits by tourists staying elsewhere on the island or by cruise visitors. This development must take place within carefully controlled environmental and social limits. Marine Environment The tourist production, both on Unguja and Pemba, is further enhanced by a rich marine environment characterized by coral reefs sutable for snorkeling and diving, offshore islands and coral reefs, such as Changuu, Chumbe, Mnemba, etc., big game fish, sea turtles and dolphins, sand beaches and extensive water areas now used mostly for traditional fishing activities. The marine environment can be sold either as a stand alone attraction or as an add on to safari/wildlife vacations on the mainland or in other parts of East Africa. At the same time, if

not carefully managed, tourist activities in the marine areas can result in overcrowding, pollution, environmental degradation and depletion of resources. Also, the extensive, shallow flats at low tide, which expose sea grass and coral patches, can limit the use of some beaches for swimming and may detract from their value as a primary attraction. Secondary Attraction Spice Tours At present, the available tours to spice plantations are of variable quality, and depend on the degree of knowledge of the tour guide or taxi driver. If the guide or driver is knowledgeable, the experience can be both enjoyable and educational. Visits to the Agricultural Experiment Station could also be of interest to visitors. In come from spice tours can be augmented through the sale of spice gift packages, especially if these are more attractively presented, and through the sale of local food, fruit and vegetables with a simple outdoor area to eat. Jozani Forest Reserve Jozani Forest provides a habitat for the endemic red colobus monkey. Additionally, the forest offers a diverse, visually interesting experience in the last remnant of Unguja’s native forest vegetation. In order to attract more visitors and to satisfy their expectations, there must be a reasonable chance of sighting the monkeys; a natural undisturbed forest environment and improvements to the facilities. Jozani, and other reserves such as Ngezi Forest on Pemba, can also attract conservation groups and professional societies wishing to view endangered species or rare eco-systems. Other Sites and Attractions Other sites and attractions, which are often included in island tours and excursions, include the ruins of Maruhubi Palace, the Mtoni Slave Chambers, the ruins of Mtoni Palace, the Kidichi and Kizimbani Persian Baths and the Mangapwani Slave Cave. In general, these attractions are not well presented and in some cases are not easily accessible. Improvements, both to the facilities themselves and to information for visitors and general site appearance and access are needed to make them more attractive for potential visitors.

Arts and Crafts The best known and distinctive arts activity in Zanzibar is carving, especially production of wooden chests and doors, which has now been expanded to include picture frames, miniature door, chests, other furniture and brass, copperware and jewellery. An indigenous form of ‘Tinga Tinga’ art is a available along with Makonde Carving sold in the street markets and shops of Stone Town. There is a need to encourage the production of high quality and more diverse handicrafts and to provide improved marketing and sales outlets. Local products should be marketed through value-added approaches. For example, attractive packaging that draws the buyers attention to the fact the product is locally made or grown. Local vending provides a range of opportunities for local people to become involved and benefit from tourism. However, control is needed to stop cheaper import of craft products becoming available and competing unfairly with craft workers. Schemes exists in other countries where crafts are sold on behalf of local people by tourist establishments with the proceeds going direct to the maker. Notably the backpacker market generally tends to put a low value on craft products, whilst the mid and upper markets places a fair and equitable value on local crafts. Village-based Activities More opportunities need to be created for tourists to view or experience traditional ways of life and economic activities through community visits, boat and bicycle tours etc. this should be done through community- based organizations. 6.3. PEMBA Tourism on Pemba is undeveloped due to lack of accommodation facilities, infrastructure and other services for visitors. On the other hand, Pemba has good potential for special interests such as diving, deep sea fishing and as an eco-tourism destination for discerning visitors. Primary Attractions Marine environment Pemba, especially the western side of the island facing the Pemba Channel, is very rich in coastal resources, and already has an international reputation as a centre for diving and deep sea fishing. Pemba also has a number of fine, sandy beaches, especially in the northern part of the island e.g. Vumawimbi, Verani, Kiuyu, which have already attracted interest from potential investors.

Misali Island Situated west of Chake Chake, Misali Island is surrounded by a coral reef and is a popular place for swimming, snorkeling and diving. It is also much used by local fishermen, development is being controlled under the Misali Island Conservation Project. Secondary Attractions Ngezi Forest reserve Ngezi is protected area encircled on three sides by the Pemba Channel and related waterways. The forest has considerable appeal for special interest nature tourists due to diverse and rare botanical species and the presence of colobus monkeys, fruit bats, antelope, wild pigs and a wide variety of birds. A number of tourism developments have been proposed at or close to Ngezi but there are major unresolved issues with regard to possible encroachment into the forest area and displacement of local fishermen. As with Jozani, improvements to facilities are also required. Pemba Essential Oil factory Located at Chake Chake, the factory offers visits to view the distilling process and also to the fields where many of the raw ingredients such as lemon grass and eucalyptus are grown. Development of a small interpretation centre and shop selling the factories products would enhance the experience. Eco-tourism Pemba has a more undulating landscape than unguja, and is more densely vegetated with both natural forest and plantation. At present relatively unknown, it can be developed as an attractive destination for eco-tourism, including walking and trekking holidays cultural tourism, study groups, etc., especially for those who are prepared to put up with relatively basic conditions. Spice Tours Despite its position as the main producer of cloves and other spices, Pemba does not at present offer any organized spice tours for visitors. Cultural Sites The islands contains a number of sites of cultural interest such as the ruins at Pujini and Jambangome. However, there are no interpretation facilities at the sites for tourists. There is a very small museum in Chake Chake, but this badly

needs investment and more exhibits to hold the interest of tourists for more than a few minutes. Multi Activity Trails Pemba is particularly suitable for the development of trails for walking, mountain bikes and horse riding because of its varied terrain. An opportunity exists for the development of ‘cultural’ trails linking sites and areas of interest. Good interpretation facilities in the form of on route information boards, interpretation centres and/or experienced local guides would be required to achieve visitor satisfaction. The development of a network of well designed trails should considered as part of the eco-tourism experience. 6.4. INFORMATION/INTERPRETATION CENTRES Education and interpretation is central to informing the tourist about Zanzibar. Opportunities exist both on Pemba and Unguja to develop a network of interpretation centres based on the existing protected areas, museums, cultural sites of specific interest such as the essential oil factory in Pemba etc. These centres could be interlinked and provided the basis of an island tour which tells the ‘Zanzibar Story’ covering all aspects of the islands culture, history, nature, marine life and industry. The centres would need to be of high quality and include interactive displays. 6.5. CIRCUIT EXTENSIONS With regard to Zanzibar there are a number of possible circuit extensions that can be further developed and promoted:

• North Circuit Safari, Zanzibar beach holiday and Stone Town Cultural experience

• Mainland Safari and Zanzibar Stone Town cultural experience • Zanzibar beach holiday and selous safari/Southern Circuit Zanzibar has a competitive advantage vis-à-vis its Indian Ocean beach holiday competitors in that it can offer and tour operators include in package tours: • Stone Town cultural experience • Safari tours to the mainland

• Pemba Eco Tours and marine activities

In the past Kenya has successfully developed and promoted to its main European markets its beach product (Mombasa et al) as a beach holiday destination, with optional safari tours of 1 to 3 days. 6.6 ACCESS AND INFRASTRUCTURE Zanzibar International Airport (ZNZ) In 2001 despite the increased frequencies by Kenya Airways and other scheduled airlines, international schedule and non-scheduled passenger traffic showed a downward trend. Movements increased by + 6.3% to 1.795 in 2001, while corresponding passenger traffic recorded a drop of – 2.5% to 68.342 passengers in 2001, the decrease in non-scheduled services went down from 58.265 to 42.633 passengers in 2001 (- 26.8%). The latter being due many to cancelling of Italian charters after the January 2001 ‘troubles’. The domestic services passenger traffic decreased by – 0.9% to 13.686 passengers in 2001 by a total of 1.036 aircraft movements. The number of non-scheduled services increased by + 3.1% to 12.421 movements with 77.224 passengers (+ 17.4%). The Zanzibar airport 2.462 in runway needs resurfacing, while B 767 and B 777 aircraft landings are presently designed as ‘critical’. There is no Instrument Landing System (ILS) on hand. The appearance and very bad condition of the arrival, departure, baggage handling etc. buildings and facilities give the visitor a very negative first and last impression of Zanzibar. In November 2002 an x-ray machine for security/baggage checks was introduced. Visas are issued upon arrival but there is presently a problem with visas for Italians having to be pre-issue in Italy. Planted Improvements: The design process for extending the runway to 3.000m (c. US$ 2 million investment) and resurfacing the existing runway (c. US$ 2.4 million) are expected to be completed by the end of 2002, to go for tender early 2003 and to take one year to complete (Word Bank). The terminal building is now being designed so as to separate domestic and international traffic and to plan for an overall upgrading. Implementation is anticipated for 2003/04, subject to securing a loan to finance the project.

6.7 ZANZIBAR PRODUCT SWOT ANALYSIS The competitive strengths and weaknesses of the product along with the opportunities and possible threats are set out in the following SWOT analysis: Table 9 Swot Analysis Strengths • Zanzibar – known name

• Stone Town – uniqueness and cultural experience

• Paradise Islands- Pemba etc

• Extensive white sandy beaches • Variety marine activities

• Friendliness of the Zanzibaris • Hotel stock variety – Stone Town,

beach and eco resorts.

Opportunities • Infrastructure improvements

• Institutional strengthening and funding

• Create hotel and tourism association

• Improvements to sea and airports

• Training staff – improving service standard

• Product and activities improvements

Weaknesses • Infrastructure – roads, utilities,

garbage • State of sea and airport facilities • Private sector lack representation

• ZCT lacks funding and effective manpower resources

• High taxation and fees etc.

• Low occupancy levels – affecting viability

• Ineffective security/policing • Short high season period

Threats

• Over taxation threatening viability • Deteriorating product standard

• Health and hygiene risks • Lack of funding and marketing

resources • Negative image – Papazi, drugs,

Prostitution • Increase in rooms – insufficient

airlift • Terrorism and global economic

slump

The Strengths

• While Zanzibar is a worldwide known name – a real image of the Zanzibar product is however, mostly unknown.

• The uniqueness and cultural offer of Stone Town is a considerable advantage vis-à-vis other Indian Ocean Beach destinations;

• The islands around Unguja and especially Pemba are still paradise islands with their marine and eco environment;

• All islands have extensive white sandy beaches and interesting marine life; • The friendliness of the Zanzibaris is a great asset;

• A large variety of hotel types are available from quaint, attractive ‘inns’ in Stone Town to 3/4/5 star beach resorts.

The Weakness

• The infrastructure is weak with mostly dirt roads to access beach resorts; power cuts, water supply and telecommunication problems which need to be urgently addressed – not to mention the bad situation with regard to garbage collection and disposal;

• Both the harbour (ferry/cruise ship) and airport facilities are in a deplorable condition and give a very negative impression;

• The Tour Operator Association has not been functioning for some years and a Hotel and Tourism Association has not been formed to date;

• The ZCT is highly staffed (72 in Unguja and 18 in Pemba) and lacks funding and resources to properly market and promote Zanzibar;

• The tourism private sector complain of VAT at 20% and having too many high taxes, fees, lease are only partly collected and paid up;

• The high season is short and hotels in general have an occupancy level of only 40% to 45% on average.

The Opportunities

• To seek funding for infrastructure improvements to the benefit of Zanzibaris and furthering tourism;

• To strengthen the ZCT organization and properly fund is marketing and promotion efforts. Furthermore, to create an Advisory Board of Directors from both the public and private sectors;

• The creation of a Hotel and Tourism Association with an effective executive secretary – to represent the private sector;

• Create a working group with public and private sector participation for short term improvements to be carried out at the harbour ferry port area and at the airport. Furthermore, to plan for major improvements and the funding thereof;

• With the planned increase in room capacity (2002 – 2006: + c.1.000 rooms) to establish and implement a sector training plan;

• To improve the hotel product by allowing a period of tax/duty free importation of material and equipment for upgrading the product and creating new activities such as golf, etc.

The Threats

• Over taxation and burdening with fees etc. will lead to uncompetitive pricing and lessening of value for money spent and could have an effect on the future viability of the tourism sector;

• The health and hygiene risks – such as Cholera (January 2001), Malaria, AIDS, etc.

• Possible recurrence of political and social unrest.

• The lack of funding for ZCT marketing and promotion of Zanzibar in the future together with over + 80% increase in 3 star of better room stock over the coming 3 to 5 years, could lead to non-viable occupancy levels for many properties;

• The lack of enforcement of the law in view of drugs, prostitution and papazi harassment could generate a negative image of the destination and effect the holiday enjoyment of the visitor, not to mention the effect on ‘word of mouth’ negative promotion;

• With the increase in room stock, sufficient airlift capacity and airport improvements need to be planned;

Just as 11th September 2001 had an effect on Zanzibar’s tourism performance, future terrorist attacks, the situation with regard to Iraq, a global economic slump all threaten Zanzibaris tourism development. Through good PR and marketing there is a need to develop and keep a positive image of Zanzibar in the market place – especially within its main markets.

7. SERVICE STANDARDS, TRAINING NEEDS AND FACILITIES 7.1 IMPORTANCE OF TRAINING As described in Section 3, the tourism sector already brings considerable economic benefits to Zanzibar, and has the potential to make a far greater contribution. Failure to invest adequate resource in the development of standards of service in the sector can place these benefits in jeopardy and restrict the growth potential of the industry, especially if a destination gets a reputation for poor service. Tour operator research carried out in 2001 found that a significant number of the European tour operators surveyed felt the ‘the service element in Tanzania was not to a high enough standard to justify the price being charged’. Tourism industry personal often lack many of the essential skills needed to do their job to the standard that is required if Tanzania is to compete successfully in the market for international tourism. These findings applied equally to the mainland and to Zanzibar, and should be viewed by the main stakeholders as a ‘wake-up call’ to address the area of tourism training and education in an effective manner. This will require close co-operation between policymakers, training institutions and the industry, and the development and implementation of assured funding mechanism to guarantee the sustainability of the tourism training and education system. 7.2 PROFILE OF EMPLOYMENT While there exists no official data on the employment generated by the tourism sector, it is estimated that currently some 5,800 persons are directly employed by the tourism industry in Zanzibar. Of these, approximately 4,400 (76%) are employed in the hotel/guest houses sub-sector. The remainder are employed in tourist restaurants, tourist shops, ground tour other tourism-related government departments, or as authorized tour guides. Table 10 Estimated Direct Employment in Tourism, 2002 Sub-Sector Total staff %

Hotels/Guest Houses 4,400 76.2 Tourist restaurants and shops

300 5.2

Tour guides 325 5.6 Ground tour operators 500 8.7 Airlines, dive operators, 100 1.7

etc Ministry/Commission for Tourism/Parastatals

150 2.6

TOTAL 5,775 100

Source: Consultant’s estimates ------------------------------------------------------------------------------------------ European and United States Market Demand Survey for Tanzania, Final Report, August 2002

These estimates should be regarded as provisional pending the compilation of more detailed information which is expected to become available as part of the work that is being done to establish a Tourism Satellite Account for Tanzania (mainland and Zanzibar). 7.3 TRAINING NEEDS While no assessment has been made of the training needs of the tourism sector, it is estimated that not more than one in ten of the workforce in the sector has benefited from any formal training. There is serious training problem, both at entry level and for existing staff within all parts of the industry. For existing staff, some in –house training is carried out ,but generally not on a regular or planned basis to agreed criteria by professionally qualified trainers. Based on the existing level of employment in the tourism sector and planned new hotel developments, it is estimated that some 7,000 existing, additional or replacement staff would need to receive training in the period 2003-12, of which more than three-quarters would be from the accommodation sector. There are four main categories of training needs that should be addressed in an integrated tourism training programme. These are

• Basic vocational training for new entrants to the tourism industry;

• Improvement of craft and basic skills among existing staff; • Development of supervisory and management personnel especially in the

accommodation sector;

• Further development of public awareness and tourism education programmers For those currently employed in the industry, the priority training areas are:

• training and retraining of existing managers;

• development of supervisory skills for food production ,food and beverage service, housekeeping and front office departments;

• skill development for line staff- front office, kitchen, waiters \waitresses, housekeepers, etc.;

• retraining of existing staff to improve attitudes and customer relations;

• tour guide training; • English and other foreign language skills;

Management Training

At present, there is no provision in Zanzibar, or Tanzania, as a whole, for tourism management training to degree or diploma level. It remains unclear whether or not provision will be made for management training at the Hotel and Tourism Training Institute in Dar-es-Salaam. This facility has recently moved to a new location and is being assisted in certain areas by the Government of France. An alternative would be to utilize the Utalii College in Nairobi as the East African regional center of excellence for senior and middle management tourism training. Courses are offered at both and certificated level. This alternative would reduce the need for a dedicated senior management tourism training facility in Zanzibar. In addition, donor support should be sought for scholarships for young Zanzibar to attend tourism management training courses in Utalii and other recognized colleges,e.g. similar to those provided for mainlanders under the recently-concluded Irish aid project. In the longer term, the University of Dar es Salaam should develop a hotel and tourism management module within their existing coursers This could be combined with industry placement in Zanzibar, Tanzania and abroad. Customs, Immigration and Police Through their contact with tourists, Customs, Immigration and Police officers can leave lasting positive or negative impressions on visitor. There is no training being provided at present for Customs, Immigration or Police officers .in the reception and/ or handling of tourists, or in the appreciation of tourism, its national importance and their role in it. This needs to be provided in conjunction with the establishment of a Tourism Police Unit.

Tour Guides The Commission for Tourism is responsible for the licensing of tour guides. However, apart from a short for approximately 30 tour guides provided at HTTC as part of an UND/ILO project ,no stands or training requirements are necessary to become an approved tour guide. 7.4 TOURISM TRAINING FACILITIES Hotel and Tourism Training Center The main tourism training institution is the Hotel and Tourism Training Center which is located within the grounds of the former Maruhubi Hotel .It comes under the direction of the Commission of Tourism. The immediate objective of a UNDP/ILO project, which was implemented over the period 1992-94,was the setting up of a self-reliant hotel and tourism training center at Maruhubi capable of providing basic /medium level technical skill to personnel entering the hotel and catering sector ,and upgrading the skill of staff already employed in supervisory head of department positions. This programme was partially achieved through:

• The installation of training equipment within remodeled premises; • The provision of training at basic/medium level for a group of

national trainers; and

• The integration of training activities with a commercially operated and financially autonomous training restaurant.

Other activities included assistance with a hotel classification for Zanzibar; short three month courses for supervisors, managers and tour guides; seminar for hotel and restaurant managers; assessment of the capacity of the Commission for Tourism ; and study tours for Commission for Tourism staff.

At present, following the termination of the UNDP/ILO project, courses at/medium level are conducted in Housekeeping, Food and Beverage Service, Food Production, and Front Office, but the output of 18 persons per year for each course, i.e a total output of 72 persons, not all of whom take up positions in the hotel and catering sector, is inadequate to meet

the needs of the industry. The nine months of training to certificate level, including two month attachment, is also inadequate.

Other weakness at the HTTC include:

• The instruction lack industry experience and would need to be trained at diploma level were it intended to implement higher level programmes.

• The need to improve student social skills and proficiency in English;

• The library is inadequately stocked with supplementary training materials, books and periodicals on the subjects covered in the course:

• The restaurant does not appear to be operating as a commercial enterprise;

• There is no computer or other equipment for Front Office training.

• There are no hotel rooms for Housekeeping training, only a bed in the laundry room and

• The equipment originally provided under the UNDP/ILO project now needs to be replaced.

Clearly, training on the scale required cannot be implemented through the HTTC or the vocational school (which can only provide basic training for certain trades or crafts). For this reason, there will have to be a substantial degree of on – the job training. Otherwise staff will continue to be imported from the mainland and further a field, and hotels will be tempted to poach trained staff from one another.

Private Training Establishments.

Such private tourism training establishments as exists in Zanzibar offer very limited skills training in a classroom environment with no practical training or suitable equipment. There is a need for better regulation of these institution by the Commission in order to bring about improved standards. A rather different case is the proposed new hotel development by Protea (with the involvement of a local NGO), that may contain a hotel training facility, which should be encouraged.

7.5 IMPROVING SERVICE STANDARDS

In order to improve service standards to meet international requirements, the following actions are needed;

• Secure sustainable source and level of funding for tourism training.

• The head of the HTTC to be responsible for tourism training policy.

• Establish a Tourism Training Advisory Committee made up of representatives from the tourism industry, the educational sector and the Ministry/Commission for Tourism;

• Formulate a manpower training policy and plan;

• Modernise, upgrade and re-equip the HTTC;

• Implement an ongoing train- the trainers programmed;

• Formalise and upgrade tour guide training; and

• Provide a mechanism for tourism management training either at Utalii college in Nairobi or through the Development of appropriate facilities in Tanzania or Zanzibar.

Further details are given in section 13 (Action Programmes)

8. ENABLING ENVIRONMENT

8.1 INSTITUTIONAL ARRANGEMENTS

Present Organizational Structure of Commission for Tourism

As the Promotion of Tourism Act 1996, published in the Government Gazette, Vol. No. 5759 of September, 06, 1997, the composition of the ZCT is as shown on Chart 1

Chart 1 Organisational Structure of Commission for Tourism

Ministry TIM &Tourism

Zanzibar Commission Tourism

Executive Chairman

Executive Secretary

Internal Auditors

Legal Officer

Hotel Tourism Training Centre Pemba Office

Director Planning & Administration

Director Marketing & Promotion

Accounts

Planning Officers

Administration

Inspection & Licensing Unit

PR & Information

Marketing & Promotion

Statistics & Research

The ZCT currently employs 80 persons which include 19 staff in the Pemba. As per the promotion of Tourism Act 1996 the Executive Chairman, Executive Secretary and the two Directors are appointed by President.

The Minister as per Part II, Section 4(2) may appoint a Tourism Advisory Board whose functions, powers, tenure and terms shall be provided by the Minister by way regulations for that purpose.

ZCT Operating Expenses

Although the Promotion of Tourism ct 1996 foresees in Part V, Section 27 (b) “such sums equivalent to 35% collected by the Revenue Board or any other collectors from Hotel Levy Act 1995 or any substitute legislation” (i..e 20% VAT) the ZCT date does not receive this and is constrained by inadequate funding and trained manpower resources.

Managerial, Manpower and Technical Capacity of ZCT

The qualified management of ZCT have constrained in their efforts over the past years because of:

• Being heavily staffed, lack qualified trained manpower, i.e under-trained;

• Under-funding and having to rely on collected fees for licenses, permits and approvals etc;

• Being under-equipped, i.e, lacking PCs in the statistics, accounting etc, units

• Insufficient marketing and promotion funding resulting in lack of proper collateral material et al.

Tourism Private Sector

Despite the fact that there are 3.089 rooms presently in Zanzibar and that it is expected to reach 4.000 rooms or more by the year 2006, 128 group tour operators, many tourist restaurants, dive operators, airlines, etc.- Zanzibar to date does not have a much needed effectively functioning Hotel and Tourism Association.

Despite the fact there are 3.089 rooms presently in Zanzibar and that it is expected to reach 4.000 rooms or more by the year 2006, 128 group tour operators, many tourist restaurants, dive operators, airlines, etc – Zanzibar Hotel and Tourism Association Founding Committee so as to get its

formation and selection of an Executive Secretary in Place for starting up early 2003.

With a ZH and TA in place, the involvement of the private sector in a possible ZCT Tourism Advisory Board and better co-operation for a more effective marketing of the destination could then be aimed for.

8.2 LEGAL FRAMEWORK

For the tourism sector, enabling legislation and a regulatory framework are in place, however, there is a great lack of compliance and control.

Legislation for the Zanzibar Commission for Tourism

The Promotion of Tourism Act 1996 establishes the functions of the ZCT, As peer Part II Section (a) – (r ) the aforementioned act:

a) To advise the Minister in matters related to tourism business and submit report by the Commission on its implementation or at any time when needed.

b) To Commission on its implementation or at any time when needed.

c) To issue licenses for tourism business.

d) To keep a record of those involved in tourism

e) To change, suspend, alter or cancel licenses issued in accordance with this Act.

f) To classify and categorize institutions which carry on tourism business.

g) To hear and investigate complaints related to tourism.

h) To supervise hotel and restaurant tariffs and taxes in tourism.

i) To inspect institution which carry on tourism business.

j) To protect areas allocated for tourism.

k) To plan and direct tourism in a manner which is in conformity with the overall government development policy and strategies.

l) To promote Zanzibar as tourist destination.

m) To improve and upgrade tourism products so as to attract high spending tourists.

n) To monitor tourist expenditure and to ensure that foreign exchange earnings are appropriately collected and accounted for accordingly to the laid down procedure.

o) To train manpower for all sub-sectors of tourism industry and of all levels- basic, medium and high-class levels.

p) To assist potential investors and to facilitate tourism investment in Zanzibar, through publications for investment procedures, guidelines, organizing of investment seminars, workshops and helping investors to obtain other requirements such as land and infrastructure.

q) To co-ordinate efforts of all institutions within the tourism industry and between tourism and other sectors of the economy at all level – regional, national and international.

r) To educate the public on the importance of tourism to the national economy and their role and responsibility in the development of tourism.

The Act provide for the registration of all tourist businesses and the establishing of conditions for registration and classification. The issuing of licenses to persons and businesses involved in tourism is empowered to the ZCT.

Regulations for the Tourism Industry

There are a number of elements of legislation, which have an impact on tourism and other sectors in general. These include laws in such areas as taxation, customs, immigrations, transport, public safety, health, environment, planning etc., and are in these fields of legislation the responsibility of the relevant Ministries.

Potential Forthcoming Institutional Changes

A new investment policy is to be put before parliament in 2003 that may result in the incorporation of ZTC and ZIPA into a new agency. This new agency will be responsible both for tourism promotion and investment and therefore potentially has the capacity to improve tourism planning (physical, marketing, design etc) as a whole.

8.3 ENVIRONMENT FOR ENTERPRISE DEVELOPMENT

The tourism industry complains of the large number and high rate of taxes, licenses and fees imposed on hotels and other operators, and the industry maintains that this is contributing to higher prices and lack of value for money spent when compared to competing destinations.

It is a fact that the tourism sector is faced with an extensive array of VAT, corporate taxes, diverse licenses, fees and contributions etc., when have and effect on cost levels and viability of the operations.

Under normal circumstances, such an onerous fiscal regime would represent a considerable disadvantage to investment. However, its effect is probably offset to some degree by certain inefficiencies in tax revenue collection. It is possible that, with better collection methods, the number and rates of taxes could be reduced while at the same time increasing the tax revenue yield. As part of the overhaul of the tax system ,all tourism enterprises over a certain size should be required to submit audited accounts to the Revenue Authority. Prepared by reputable auditors according to international accounting standards.

Furthermore, there is no availability of long term financing; interest changes are very high .There are no mechanisms to support local entrepreneurs along with inadequate investment incentives and non-compliance with promised Government infrastructure support.

9. DEVELOPMENT POLICY GUIDELINES

9.1 THE FUTURE CHARACTER OF TOURISM IN ZANZIBAR

Tourism in Zanzibar is characterizes by a surfeit of low quality ‘backpacker’ type accommodation that falls below international standards. Analysis of the current situation indicates that, of the one hundred and seventy one developments operating on Unguja Island, 75% (123no) have not been given grades by the Commission for Tourism and only ten properties fall within the or five star category.(Chart2).

The un –adopted Tourism Policy Statement (1997)produced by Commission For Tourism state that tourism should be culturally and environmentally sensitive and based on fewer high spending tourists. Services provided should be of the highest quality and mass tourism should be rejected. This view has been widely supported in discussions with various players in the public and private sectors. Historically this assertion has been supported by the Investment Protection Act 1989 which set out to limit the lower levels of investment ,thereby encouraging ‘quality’ development.

Chart 2 Tourism Accommodations by Grades on Unguja Island

Tourist Development on Unguja Island is advanced in terms of the number of developments when compared to Pemba Island. This can be attributed to a

No Grade 72%

1 star 7%

2 star 13%

5 star 3% 3 star

2%

4 star 3%

number of factors including, a higher proportion and distribution of ‘good’ beaches. Access from the mainland is relatively superior, the internal infrastructure and services are comparatively better organised and distributed. Unguja Island is commonly called ‘Zanzibar’ and hence is well recognized. Stone Town itself is an internationally known attraction, thus the tourism product for Unguja will be directed towards traditional sun/sea/sand holidays in the tourism zones and cultural experiences in Stone Town. In comparison to Unguja, traditional tourism development opportunities on Pemba Island are limited by the relative lack of available beaches. The island and its islets however do have near pristine marine resources. Pemba Island is becoming better known for diving activities and game fishing in the Pemba Channel Land, Pemba contains a more diverse landscape than Unguja including the unique Ngezi Equatorial Forest Reserve, Pemba does lend itself towards the development of high quality tourism based on ecological principles 9eco – tourism) based around its unique natural and cultural resources. Thus the future direction of tourism for Pemba should be based on.

- High quality ‘eco- lodge’ experiences - Scuba diving - Deep sea fishing - Boating/island hopping - Special interests such as bird watching - Cultural interests including Swahili language courses - Soft adventure such as walking and mountain bikes - Spice tours and essential oils.

Box 1 What is an Eco- Lodge? An Eco – Lodge

• Conserves both the natural and cultural environment in which it is located;

• Has a minimal impact on the surrounding environment during the construction stage;

• Is integrated into its local natural and cultural context through the use of local architectural style, colour, landscaping and material use;

• Obtains its water from sustainable sources and takes necessary steps to reduce water consumption;

• Handles and disposes of sewage and solid wastes using biotechnology and other sustainable means;

• Meets its energy needs through passive design and meets these with modern technology for energy saving and greater sustainability;

• Works with the local community and provides opportunities for

9.2 TOURISM POLICY AND PLANNING ZANZIBAR There I is no current tourism master plan for Zanzibar. A UNDP/World Tourism Organization plan published in 1984 was not activated. A number of studies have been undertaken on behalf of the Commission for Tourism and Commission for Lands and Environment relating to both tourism infrastructure and management and planning through the Zanzibar Integrated Land Use Project. Tourism Development Policy for Zanzibar is based of the following:-

• Tourism Zoning Plan (1996) • Zanzibar Vision 2020 • Tourism Policy Statement (un-adopted)

The Tourism Zoning Plan was produced as part of the larger Zanzibar Integrated lands and Environment Project and was supported by the Finish International Development Agency (FINNIDA). The plan seeks to pride a balanced and phased development strategy, accommodation types, planned bed capacities and infrastructure constraints and requirements for each Tourism Area (TA) were identifies. The second stage of the Zoning Plan was to implement detailed planning schemes by identifying sites for development and undertaking the necessary participatory consultations with local people. This has been undertaken for four small areas. However, the abandonment of the project by FINNIDA in 1996 has resulted in the project being suspended as the resources required to fulfill the planning process were massively reduced. The withdrawal of FINNIDA has had massive consequences on effective planning in Zanzibar since the Government was unable to provide the additional funding from its central budget. As a result, there is no effective planning control and this has overwhelmingly contributed to the environmental degradation of the tourist zones, the domination of low quality development and the ignoring of planning guidelines in new developments. For example, the 30 metre building setback from the sea high water mark has been ignored in many cases.

Zanzibar Vision 2002 is a principal document produced by the Government of Zanzibar and sets out the sustainable development of resource and services until 2020. The Vision policy for tourism is set out as;

‘to develop (a) tourism industry which is culturally and socially responsible, ecologically friendly; environmentally sustainable and economically viable; and

to promote Zanzibar as the destination for tourism in terms of historic cultures and beach holidays.’

The Tourism Policy Statement was production in 1997. It remains in draft from and has not yet been adopted. The provides the broad scale policy for future tourism development and recognizes and rejects ‘boom or bust’ syndrome of mass market destinations. Under the guidelines and objectives the policy promotes:-

-Tourism which is compatible with the historic and cultural conditions of Zanzibar

-The continuous upgrading of tourism services and product;

-Sustainable tourism based on ecological principles;

-Tourism must ultimately be under the control of local people;

-The industry must be part of a wider economic strategy and not the main or single industry on which the Zanzibar economy is reliant.

Overall, the planning framework and policy for developing quality sustainable tourism is in place. However, Zanzibar is not attracting the high quality developments it wishes to have and low quality tourist developments predominate. The reasons for this can, in part ,be attributed to the following factors:-

• Since the tourism policy statement is un-adopted, there is no official policy that states the level and quality of the tourism product that the Government will accept, making it more difficult to resist low cost developments;

• The physical and environmental planning structure which is responsible for forward planning and development control is under-resourced in terms of equipment, transport and trained enforcement staff .Therefore it is not an effective mechanisms;

• The overall approach to securing investment for new tourism development is a reactive process. Investors approach the Zanzibar Investment Promotion Agency with proposals which are evaluated under the inadequately resourced panning system, which results in scattered development imposing further strains on providing infrastructure services;

• The low leasing cost of land allows individuals and companies who do not have the financial resources to build high quality constructions to provide a low quality development some of which are abandoned before completion;

• The low leasing costs of land have resulted in land speculation locking up from potential many of the beast beach sites suitable for high class developments

• Potential investors are put off protracted lease negotiations with local people for compensation and the final cost of obtaining the land lease is unknown;

Tourism Zones –Unguja

The Tourism Zoning Plan(1996) identified nineteen tourism area (TA).The majority of these are grouped to create for main Tourism Zones (Map 1):-

• North Zone

• North East Zone and Mnemba

• South East Zone

• North West Zone

The Plan prioritized the North West Zone for development in the first phase(1993-1998) because of its higher levels of infrastructure, close proximity to Stone Town and the fact that the area was more socially robust .In reality development has proceeded largely contrary to the phasing plan and it is dispersed across the four zones. The infrastructure serving all the areas is considered to be poor. Under the lease agreements with investors. The Government of Zanzibar is obliged to provide the necessary essential services such as serviced roads, electricity, water and telecommunication to the development. However, the unavailability of sufficient funds to undertake these obligations has resulted in the greater part of cases of these services being either inadequate or non-existent. As result:-

• The principal tourist zones in the North, North East and East are not serviced with a surfaced road along their lengths. The surfaces are rough and difficult to pas along after inclement weather. The condition of the roads considerably increases the time taken by tourist traffic to reach the airport, seaport and Stone Town.

• There is no full coverage of potable water supply. Many tourist developments are relying on private boreholes or buying water by tanker;

• Collection and treatment of solid waste is virtually non-existent outside of Stone Town. Waste is dealt with by disposing in legal and illegal dumps and local incineration. The problem is massive and is creating a number of effects;

- Detracts from the image of the island. The problem is especially bad in coastal communities such as Nungwi

- It is a health hazard encouraging rats and feral dogs

- Creating water pollution in ground water supplies

- Creating beach and lagoon pollution

- Fire hazard.

• Electricity has generally a good coverage but is not always reliable and further investment is required.

Stone Town

The Stone Town is an outstanding example of a Swahili coastal trading town which retains its townscape and urban fabric virtually intact and contains numerous interesting buildings and artifacts which reflects the local culture. The Stone Town is inscribed on the UNESCO World Heritage List and is subject to the Stone Town conservation Master Plan 1994. However, the implementation of this plan lacks both human and financial resources.

Concern has been expressed by the Stone Town Conservation and Development Authority and other observers regarding the impact of tourism both visually and to local cultural diversity. Traditional shops and businesses are being replaced by tourism orientated business such asa internet and gift shops. A myriad of garish signs have appeared. Traffic problems are growing, especially around Shangani, as tourist traffic increases, both the cultural and social fabric of the town are considered by some to be under threat. Undoubtedly Stone Town is Zanzibar’s chief attraction. It is considered to be ‘critical townscape’ in that it is irreplaceable. In order to guide future development of tourism activities and Stone Town to maintain its unique values it is considered essential that a

carrying capacity study is undertaken based on the limits of acceptable change. The study will need to include such wide ranging issues as environmental impacts, maintenance and upgrading of infrastructure to meet modern demands, social and cultural impacts of tourism and mitigation measures.

Tourism Zones – Pemba

The Tourism Zoning Plan (1996) identified seven tourism areas (TA) for Pemba. These are distributed around the coast of the main island. Two zones were identified (Map 2);

• North West Zone which includes the long sandy each side of Ras Kigomasha.

• West Zone at Wambaa beach.

The infrastructure in Pemba is less developed than Unguja. The condition of roads in Pemba is generally very poor. The north-south central spinal route from Konda in the north to Mkoani in the South of the island is being substantially upgrade and the Chake Chake to airport route is considered to be in reasonable condition. The remaining roads on the island, including those to the tourist zones are very poor.

Electricity and water supplies are problematic with long cuts in service experiences, often on a daily basis. The availability of supply to area outside of the main of populations is limited.

9.3 SMALL OFFSHORE ISLANDS

There are numerous islands offshore from both Unguja and Pemba, COLE has published a policy for the allocation and use of small islets. A number of islets have been leased to private investors. This has been mainly problematic as a result of conflict between fishermen and the investor (Mnemba) and poor developments occurring well below expectation (Chapwani and Bawe).

There is a general policy not to allocate islands for development and it is considered that this should be maintained until such time a detailed plan for the islands is forthcoming and the institutional planning capacity can realistically undertake this work.

9.4 ECO- TOURISM DEVELOPMENT

As indicated above, opportunities for eco-tourism development have been identifies and indeed the development of eco-tourism activities in Zanzibar has received support for a number of years, For Pemba, eco-tourism has been suggested as the way the development of tourism activities should be progressed. The consultants concur wholly this view. The World Tourism Organization define Eco-tourism as:-

“a form of nature tourism in which utmost consideration is given to conservation of the environment, including biological diversity, wildlife and ecological systems, with emphasis placed on educating tourists about the environment and how to course it”

The fundamental basis of eco-tourism is that it adds value rather than damages the ecological and cultural base on which it is founded. It is developed within the scope of local financial resources and as such, the activities must be environmentally and culturally responsive. They must directly benefit conservation and or local people will consequently have an incentive for conservation. Eco tourism must be self-sustaining within the context of the natural and cultural habitats in which the activities take place.

Within Zanzibar as a whole, number of active eco-tourism initiatives have already been developed, such as the conservation of Jozani Forest and protection of the indigenous and rare red colobus monkey and other fauna, the award winning Chumbe Island Coral park which has been designed and is operated on eco-lodge principles and the Misali Island conservation Project which seeks to empowers local people to maintain their local resources and uses tourism to contribute to community development projects.

Planning for Eco- Tourism in Zanzibar

If eco-tourism is to be pursued as a tourism option, it will be necessary to plan accordingly. Because tourism in Pemba is currently at a very low level, it will be easier, for the Government to pursue the development of tourism as a whole island approach and to encourage the local population to become involved in the planning process.

There will need to be strict imposition of planning guidelines in order to protect and conserve the natural environment both in terms of damage and exploitation of the resources and visual impact. All tourist developments must be based on ‘eco-lodge’ principles and enforcement of any further construction of hotel development that does not apply the ‘eco’ principles will undermine the eco-tourism product and reduce the desirability of the island as an ‘eco-destination’.

If the ‘Pemba’ product can be developed along ecological principles it does have the potential to evolve into a unique and internationally desirable tourists experience. The development of a separate ‘Eco-tourism Plan for Pemba’ is a critical component and its development should based on the public participation planning process. This plan should be fully integrated into the Tourism Master Plan Zanzibar.

9.5 THE LAND LEASE PROBLEM

Under the law, all land is vested in the President of Zanzibar, Leases are agreed with each investor on an individual basis but the maximum term normally allowed is 49 years which is subject to review. Under the present system, investors approach the Zanzibar Investment Promotion (ZIPA) with proposals for developments. The investor may have already identified land or can request assistance from ZIPA to find land. According to the Tourism Zoning Plan only land inside the zones can be developed. However, since there is no detailed planning the investor is required to enter a protracted process of identifying his needs and negotiating compensation with local residents. The process is therefore of a reactive nature responding to investors when they make an approach. As such there can be no forward planning vision and the process is wasteful in manpower and financial resources as over 60% of proposals fail to materialize.

ZIPA have indicated the desire to provide a proactive service by offering identified sites to potential investors .This would require the creation of ‘land bank’ where all negotiations and compensation agreements have been determined. By adopting the proactive approach investors can be targeted who are able to fulfil the requirement of providing high quality developments. A master plan of each tourist zone can be developed which identifies the optimum type and scale of development for each site and planning for provision of infrastructure can be achieved. A present, neither COLE nor ZIPA have financial resources to adopt this approach.

There are a number of serious problems relating to the lease of land that need to be addressed:

• Prime sites have been locked to investors through land speculation and abandoned projects;

• Payment for land leases are not always forthcoming from investors. Revenue from leases is therefore unavailable for investment in infrastructure .

• On some of the prime beach sites, ’land grabs’ have been reported where some local investors have bypassed the official process, constructed developments and then requested rent agreements .

• Sub-leasing contrary to the Investment Act is reported in prime locations, especially for dive centers and restaurants. Thus, the Government are losing large amounts of revenue which could be re-invested;

• Under present regulations land leases can be withdrawn if no development takes place. However, there is confusion as to what constitutes a start, for example, clearing a site or erecting a boundary fence should not be considered as ‘making a start’. A start should be determined when the investor has substantially invested in the site such as the erection of the main shell of the building .Agreeing to minor works as ‘starts’ plays directly into the hands of speculators.

9.6 RECOMMENDATIONS FOR ACTION

1. The Government of Zanzibar should present a clear statement as to the type and level of tourism it wishes to attract and develop in Unguja and Pemba and where the developments should be located.

2. The resources and institutional capacity of the planning and environment section of the COLE must be strengthened enabling it to undertake its forward planning role by re-establishing detailed planning in the identified tourism zones through planning schemes as laid out in the 1955 Planning Act.

3. By the completion of the planning schemes for each area , the government should negotiate and pay compensation to be local inhabitants concerned for the land identified for tourist development .This land should then be placed in a ‘land bank’ of sites which can be offered to investors.

4. In order to maximize the limited monetary and institutional resources improve planning and infrastructure services, a scheme of staged development should be undertaken in the selected zones with a complete moratorium place on all other development outside of the two priority areas where coment has not been given.

Select Zones

Unguja –Northern Tourist Zone and South East Tourist Zone (Map3)

Pemba –North West Zone and West Zone (Map)4

For Unguja the priority for infrastructure should be to :-

• Upgrade and surface the road from Fukuchani to Nungwi

• Provide clean potable water supply to Kendwa, Nungwi and Ras Nungwi

For Pemba the priority for infrastructure should be to

• Upgrade and surface the road from Konde to Ras Kigomasha and Mgagadu to Wambaa beach

• Provide clean potable water supply from ground water resources

Box Ngezi Forest Reserve –Environmental Potection

Box Ngezi Forest Reserve –Environmental Protection

In order to improve access to the Zone, the road from Konde will need to be upgraded. The road passé through theNgezi Forest Reserve and any upgrading work will create a serious impact on the forest.

In order to provide maximum protection and conservation value to the Ngezi Forest Reserves, no development whatsoever should take place within the boundary of the forest reserve. This must include providing the necessary infrastructure or access to construct xxxx development that is located adjacent the reserve other than improvements to the xxxxxx road to Ras Kigomasha. Any development which takes place within two hundred metres of the Reserve should be subject to a stringent EIA in order to ascertain any possible impacts on the reserve ecology. A buffer zone of one hundred metres should be maintained between any construction whatsoever and the boundary of the forest reserve.

5. All land which has been leased and upon which no development has taken place should be reviewed. Much of this land is held by speculators, an activity which is contrary to the Investment Act. Land upon which leases are held and where either no work has taken place or work has been abandoned should be taken back by the Government and placed into the ‘land bank’ outlined in 2 above.

5. A system of ‘completion bonds’ should be imposed on all investors taking out land leases. The purpose of the land lese will be to encourage investors.

6. Land leases which remain inactive ie no substantial construction work has taken place within a period of twenty-three months should be dissolved. The Government should retain the completion bond and the returned to the ‘land bank’ thereby eliminating land activities.

7. Owners and managers who currently provide tourism services and or un-graded accommodation should be encouraged to develop and upgrade their services or otherwise face the prospect of closure. The Commission For Tourism should provide information through training sessions, workshops, literature, personal visits and the media on what level of service is expected and how it can be achieved. Consideration must be given by the Government to providing incentives through tax breaks or other means to encourage and enable owners to upgrade and meet the criteria stated in the Government Policy Statement in paragraph I above.

8. Where it is considered feasible and in the wider interests of maintaining high quality tourist developments, low grade accommodation should be removed in favour of high quality developments and compensation provided in accordance with Zanzibar law.

9. The disposal of solid waste on both Unguja and Pemba is a major problem and health risk. Integrated waste disposal plans for both islands and investment in modern equipment such as incinerators or crushers should be decided. In all cases, disposal areas should be sealed to stop the contamination of ground water sources from the leachate. This especially important within the rag coral areas.

9.7 TOURISM AND THE ENVIRONMENT

It is well known and appreciated that in order to develop and maintain a tourism industry a high quality and relatively pristine environment is essential. Overall, the environmental quality of Zanzibar may still be considered to be high, but it is clear that environmental quality is being affected as a result of deficiencies in infrastructure and planning services, and it can be foreseen that this will accelerate as a result of an increasing population and as further development in tourism and other industries takes place. Problems related to environmental degradation include:-

• Lack of treatment and disposal facilities for both sewage and waste water causing pollution of ground water and lagoon.

• Lack of treatment and disposal facilities for solid waste causing pollution of ground water and lagoon, untidy appearance, pest problems etc.

• Depletion of mineral resources for construction materials;

• The unnecessary removal of trees and vegetation on hotel construction sites;

• Pressure on marine resources from leisure activities and competition for fishing to supply hotels.

Wide covering environmental legislation is in place under the Environmental Management for Sustainable Development Act 1996. This legislation provides for environmental impact assessment, protected areas and biological diversity,

Box 3 Nungwi Fire- The case for Requiring Fire and Building Regulations. The destruction and damage to eight hotels centers and restaurants at Nungwi during September, 2002 has focused on the requirement of good planning and management in the tourism industry in Zanzibar. Fortunately there was no loss of life as a result of the incident. Had there been, this would have resulted in serious consequences for the tourism industry. Whilst the rapid spread of the fire can be put down to the action of the wind the extensive damage would not have occurred had the area not been over developed with building in extreme proximity, and had adequate fire or building regulations been enforced during the construction or management of the development. As a matter of urgency the Government of Zanzibar should impose both building and fire regulations set at international standards for the design, layout and materials, used in the construction of all tourist buildings. Whilst the use of organic local materials is both an attractive, cost effective and often sustainable method of construction, the resistance of such materials, unless striated with fire retardants is limited in the extreme, investigations into the treatment of makuti and other natural building products with fire

disposal of hazardous waste and the development of both a National Environment Action Plan (NEAP) and Integrated Coastal Zone Management Plan, both of which are considered essential for long term environmental management and stability. Both of these plans for Unguja and Pemba should be forthcoming and supported as a matter of urgency.

Coastal Zone Management Tourism in Zanzibar is greatly dependent on the sustainable management of the natural resources of its coastal zone and the maintenance of an attractive appearance. Although further study is needed, evidence provided in aerial photographs produced three decades ago and through a single study in 1993 – 4 indicates that the coastal zone of Unguja is being significantly changed and that beach resources are decreasing. Problems in the coastal zone include:-

• Beach construction creating erosion problems. Under planning guidelines, no construction should take place within 30 metres of the high water mark. This guideline is persistently ignored.

• Beach vegetation essential for erosion control is destroyed as pressure fr beach space increases and construction continues.

• The commercial fish stocks are considered to be under pressure. For example, research into lobster has indicated that their numbers are reducing and individual specimens getting smaller. Pressure on the fisheries will continue to increase, especially since the competition between tourists wanting fish and local people increase. Illegal fishing methods are likely to remain a problem.

• Fisheries protection is required especially in the Pemba Channel as poaching from game fishing boats based in Kenya is a serious problem and should be addressed.

• The reefs are damaged as a result of non-availability of permanent anchor buoys. This problem is considered to be serous around Misali Island;

• Turtles are protected by international conventions – Green and Hawksbill turtles are known to inhabit the waters, around Zanzibar and there are a number of documented turtle nesting beaches, most notably Misali island off Pemba, Mnemba Island off Unguja and the beaches located opposite Mnemba on Unguja itself. There are also thought to be further beaches around both main islands and their islets that are frequented. The identification of new beach and back beach sites for tourism development must take into account the possibility of turtle breeding sites. Where sites are identified

these should be given the necessary protection to ensure their long-term protection.

• Dolphin watching is an activity which is becoming increasingly popular especially around the Kizimkazi area and local people benefit from receiving funding for social projects though the fee system. Dolphin (and whale) watching do provide Zanzibar with an important tourist attraction. However it has been reported that it is common to see group of beleaguered dolphins being chased by boasts of tourists. Unfortunately this exploitation of the assets may have long term implications for the dolphin population. If the dolphins are to be properly protected and promoted as an eco-tourism attraction then strict controls must be enforced to protect them in the long term. These controls must be enforced throughout Zanzibar and not only in the Kizimkazi area. The recent project initiated by the Institute of Marine Biology (IMB) to study the implications of tourism on the dolphin population should be given full government support and its findings implemented. In the interim period and until guidelines can be produced by the IMB the stricter licensing of operators, a reduction in the number of boats operating and operation of guidelines should be put into action.

• The sale of shells and coral products around Unguja is rife. Their sale is against both Zanzibar and international la. If Zanzibar is to promote itself as ‘green’ and encourage an environmentally aware clientele, this practise must be stopped forthwith.

9.8 PROTECTED TERRESTRIAL AREAS The existing protected forest areas of Ngezi and Jozani provide opportunities for further development , especially in wildlife viewing and interpretation. Both areas would benefit from becoming National Parks both in terms of promotion and in attracting funding from outside sources for improving management opportunities and education. Because the sites are relatively small and ecologically sensitive, no tourist accommodation should be placed in or immediately adjacent to the protected area including the beach.

9.9 CULTURAL SITES Stone Town is the centerpiece of cultural heritage in Zanzibar, However, there are a range of sites of historic importance scattered around both Unguja and Pemba. Little exists in the way of resources to maintain these sites. Some of the sites closer to Stone Town are well visited such as the slave caves and the coral caves at Mangapwani. However, there is little in interpretive material to hold the visitors interest.

The museums in Stone Town are well visited but investment is required to maintain the collections and also introduce modern audio and interpretive materials. Investment in maintaining the sites to a high standard and the creation of interpretation centers is required if the ‘Zanzibar Story’ is to be told as sold as a visitor attraction. A review of the management of the sites should be undertaken and a development plan for the introduction of interpretive centers and materials formulated. linking the islands culture, natural resources and ‘Zanzibar life’. The responsibility for the cultural sites is held with the Department of Archives, Museums and Antiquities within the Ministry of Education. Because of symbiotic nature between cultural sites, museums and tourism, it is recommended that this department be placed in the Commission of Tourism.

10. MARKET PRODUCT POTENTIAL AND GROWTH PROJECTIONS

Existing and Projected Visitor Numbers

In 2001, according to data compiled by the Commission for Tourism data, Zanzibar received a total of some 76,000 foreign tourists. To this number must be added an allowance for foreign visitors (including expatriates resident in Tanzania) traveling to Zanzibar on internal flights (estimated at around 15,000 persons in 2001) and domestic visitors from the mainland (estimated at around 30,000 persons) who are not at present included in the official visitor arrival statistics. This gives an estimated total of about 121,000 tourist arrivals in 2001, plus just under 5,000 cruise ship visitors.

Having fallen sharply in 2001, visitor numbers are expected to show a substantial recovery in 2002. Thereafter, between 2003 and 2012, an average target growth rate of around 6% per annum has been provisionally assumed for most categories of visitors, with the exception of Italian visitors (for whom, given their present dominance, a lower annual growth rate of a round 3% has been assumed ) and of visitors from other European countries, especially Germany and France, ( for whom, given their present low numbers, somewhat higher growth targets have been adopted. Domestic visitors (mainly business visitors) are also projected to grow relatively slowly.

On the basis of these assumptions, total tourist arrivals are provisionally projected to reach 220,000 persons by 2012. Of this number, the great majority are expected to be holiday/leisure visitors, with business visitors expected to come mostly from mainland Tanzania.

The preliminary target projections for visitor numbers and bed-nights in 2012 are shown in Table 11. It should be noted that these are preliminary figures which will be refined and perhaps revised in the light of the additional work that is due to be carried out under the present EU programme during October 2002 on the formulation of a tourism marketing strategy and plan for Zanzibar and the mainland.

Table 11

Preliminary Projections of Visitor Numbers and Bed-Nights, 2001-12

Total tourists 121,329 522,000 220,000 1,185,000 Cruise passengers 4,857 15,000

*estimates Source: Consultant’s estimates

Projection Bed - Nights

The projected growth rate in bed-nights for international tourists is higher than the projected growth rate for tourists. This is because the average length of stay is expected to increase from the current figure of around five nights to almost six nights. This does not apply to domestic tourists (assumed to be mostly business visitors) whose average length of stay tends to be much shorter.

The expansion and enhancement of the Zanzibar tourism product through the development of new attractions and additional things to o see is expected to encourage visitors to prolong the length of their stay.

2001(‘000) 2012(‘000)

Purpose of Visit Number Estimated Bed-Nights

Number Estimated Bed-Nights

Italy Britain Other Europe Sub-total-Europe North America Other Africa Rest of World Total-international of tourist

14,510 13,147 25,738 53,395 6,328 7,500 9,106 76,329

101,570 78,882 128,690 309,142 18,984 22,500 36,424 387,050

22,000 28,000 53,000 103,000 12,500 14,500 18,000 148,000

154,000 196,000 318,000 668,000 63,000 58,000 90,000 870,000

Tourists on internal flights* 15,000 75,000 30,000 180,000

Domestic tourists* 30,000 60,000 42,000 126,000

Accommodation Required

Based on a projected demand of around 1.2 million bed-nights by 2012, the total room requirements (assuming an average room occupancy rate of 60% and 1.7 persons per room) would be for around 3,200 rooms of which at least 2.500 would need to be international standard.

Of the estimated 2,500 international standard rooms required by 2012, some rooms are currently available in 3-star or better properties that are operating to acceptable or near acceptable international standards, and approximately 800 rooms are currently under construction, or planned to be provide in the next few years.

The remaining 500 rooms that will be required by 2012 will involve a combination of refurbishment from the existing stock of accommodation and the construction of new rooms. The new room requirement, including the replacement of the rooms lost at Nungwi and the provision of new up market eco-lodges in Pemba is comparatively modest – partly because of the considerable unused capacity that presently exists to low average occupancy rates, especially outside the high season. Alternatively, a temporary moratorium on new hotel development could be considered in certain areas, to boost. occupancy rates.

11. MASTER PLAN STRATEGY

Strategic Assumptions The focus the indicative master plan strategy is to guide the development of the tourism industry towards providing a high quality and competitive product that is environmentally and economically sustainable for the long term of the people of Zanzibar.

Thus:-

• The strategic task is to develop Zanzibar not only as an add on to safari holidays taken on mainland Tanzania and Kenya but also as a holiday destination its own right by developing the cultural and environmental attributes of the islands.

• The success of the tourism industry will be built on maintaining and

improving environmental quality. The present trends of environmental degradation as a result of a lack coastal zone will need to be reversed the long term future of tourism in Zanzibar may be bleak.

• Zanzibar’s tourism is intrinsically licked to its cultural wealth through its

people, artifacts, historic and cultural associations and architecture. Tourism can destroy the culture and richness through broad scale agreements to the limits of acceptable change.

• The infrastructure, which is used to service tourist areas and maintain

environmental quality, requires upgrading to meet expectations and maintain a green profile for high quality trained staff.

• To meet a growing number of tourists air access and associated facilities

will need to be improved and upgraded.

• Security of tourists will remain a fundamental issue both terrorist attack and on island robbery and assaults. Tourist safety must be given the highest and on going priority and the necessary resources of policing made available.

Strategy components To improve Zanzibar’s tourism product and its competitive ness in the market place the following strategy components must be instigated:- Knowledge and Know How strategy Planning for tourism is dependent on knowing who the client is and what they are looking for. Knowing which market Zanzibar is in and who main operators etc. Good databases and statistics are essential to make informed decisions. Investment Strategy It is the responsibility of the Zanzibar Government to provide an environment to encourage investment in tourism development. This not only includes making the necessary adjustments to tax and fiscal measure but also requires that a proactive rather than a reactive approach to seeking be established.

Product Strategy There is overall agreement that the tourism product requires improvement in quality if it is to compete with other regional island sestina. In order to achieve this there will need to be investment in the institutional resource of its planning system, more effective management of the allocation of lease agreements including withdrawal of leases where necessary and undertaking actions to improve the existing stock of tourist facilities.

Infrastructure and Access Strategy Investment in improving infrastructure roads, airport, and utilities is an important component to improving the tourism product and the image of Zanzibar.

Environmental Protection Strategy

A tourism industry will only be successfully maintained if the environment is conserved to a near pristine condition. Environmental pronominal protection must be placed at the top of the political agenda and regulations, management regimes and plans put in place to ensure environmental sustainability. Priority should be given to coastal zone management and finding ways to deal with the increasing pressures marine resources.

Cultural Awareness Strategy Zanzibar is cultural rich and this serves to draw tourism. However, tourism can and does have negative consequences for the island cultural which need to be identified. Measures must be taken to minimize and manage the effects on local communities and the islands cultural recourses through developing appropriate management strategies based on limits of acceptable change.

Human Resources Strategy

The quality of the tourism product depends to a great extent on the quality of the trained personnel available. The upgrading and expansions of the tourist industry will place greater pressure on the available resources that the are, at present, unable to meet current demands. High priority must be given to quality training both externally and on the job in order to meet demand and provide employment opportunities for Zanzibar at all levels.

Security Awareness Strategy There is a general concern regarding the safety of tourism whilst Zanzibar. There is a need to plan and implement actions that provide increased physical protection for tourist, for example, by increasing tourist police. International security is a worldwide concern. Zanzibar must develop and public security aweless programmers covering airlines, hotels, customs and immigration departments and assure tourist of their safety.

Marketing and Communication Strategy Marketing and communications are essential components of all tourism planning and promotion. The marketing and Communication Strategy must: -

• Identify and define the target markets

• Develop and promote the image of Zanzibar as a high quality green island resort and culturally colorful destination.

• Devise an economically effective means of conversing with and influencing the target markets.

• Improve the databases for information decision-making.

Capacity Building Strategy

In order to encourage and facilitate enterprise an effective intuitional structure must be put in place, which includes building work relationship with the private sector for the benefit of all stakeholder parties. The main takes and responsibilities of implementing this strategy are: -

• Public and privet sector organizations and agencies which contribute to the tourism industry ate organized and managed in the approved manner,

• Adequate funding is made available for agencies and organizations to operate effectively,

• Regulations and safeguards are in place. 12. ACTION PROGRAMMES 12.1 IMPROVING KNOWLEDGE AND KNOW HOW

Establish a Reliable and Comprehensive Tourism Statically Database There is a need to establish a more reliable and comprehensive statistical database for the tourism sector. The existing tourism statistic (including arrival statistics, accommodation statistics, and visitor survey information are far from satisfactory in teems of the data processing is done manually and no queerly or annual tourism statistical are currently being produced. The Commission for Tourism needs additional resources (including technical assistance and computers) in order implement improved systems.

Management Information System There is a need to establish a management net information system for the tourism sector comprising (i) visitor arrival and other tourism statistics, (ii) product details and (iii) market research information. The system should be accessible to Commission for Tourism staff and other subscribers.

Assess Tourism’s Economic Significance Further research needs to be carried out on the economic impact and significance of the tourism sector. This will be done during November 2002 as part of the current EU technical assistance programmed. 12.2 ATTRACTING CAPITAL INVESTMENT

Required Accommodation When taking into the projected foreign bed night demand for 2010 of around one million bed nights, the hotel rooms currently under construction and those planned for, there will be a need to have a further 400 rooms of acceptable international standard constructed by the and of this decade. Available Tax Incentives As per the Investment Act 1996, the tax incentive offered to investors must be legally blinding. Foreign investors in Zanzibar have repotted to government that not is not always the case in order to attract new investors, their needs to be binding commitments form the government for the period which the tax incentive have been granted. Investment in Upgrading of Existing Hotels In order to improve the standard of the hotel product a tax duty free importation period of materials and equipment should be given to hotels so as to encourage investment in upgrading over a given period. Development Fund for Accommodation SMEs There is a need for Zanzibar accommodation SMEs to be able to have funds for upgrading their accommodation properties at interest rates so as to encourage greater involvement from indigenous entrepreneurs in improving the tourism sector. Rationalize Tax and Fee Regime for Tourism Sector In the tourism sector, the fiscal regime is presently far too onerous due to the number of high rate of taxes in Zanzibar compared to competing it would appear that there has been little co ordination between the various authorities in the way these charges have been levied. As the taxes and fees etc. are not being fully collected there is a need be to improve collection methods and reporting requirements, i.e.: -

• A monthly or quarterly tax, fees etc. and statically from to be returned by the 10th of the following month.

• No cash payments only bank transfers and cheques made out to the Accountant General

• Monthly or quarterly tax, fees, etc. payments on an assessment basis • On delayed payment an interest charge of x % per month.

Zanzibar Investment Promotion Agency As Italian have already heavily invested in Zanzibar so as not to be over dependent on one specific market, ZIPA Should concentrate their promotion efforts in Germany, France, UK and Spain. A list of 12 potential investors from these countries has been supplied by the consultants for them to be invites to the October 2002 Investment Symposiums in Arusha and to be mailed ZIPA documentation on Zanzibar Guidelines for investors and possible prime sites on offer. Ideally ZIPA should have outline business plans and architects design plus costing for available choice sites ready for attracting potential investors to Zanzibar. 12. 3 ENHANCING AND EXPANDING THE TOURISM PRODUCT

Improve Quality Standards The policy laid out in the un- adopted Tourism Policy Statement and Zanzibar Vision 2020 calls for he development of high quality low impact tourism with mass tourism rejected There is general agreement among all played that approach should be followed by: -

Strengthening the Planning and Development System The planning and development system is the principal tool for achieving high quality standards. At the present time the system is not working, whilst the framework for planning is in place the order funding of the planning and development in resource and man power is required to achieve: -

• Effective forward planning • Effective development control • Effective monitoring and enforcement of planning rules, conditions and

guidelines.

Improving Infrastructure. Access to the tourist area is generally poor. Improvements are requires upgrading access roads to the tourist development zones. 12.4 IMPROVING SERVICE STANDARDS Secure a Sustainable source of Funding for Tourism Training At present, there is no mechanism in place to provide funding for tourism training in a coordinated and sustainable way. Consideration should be given to the imposition of a new training levelly on tourism establishment secure a sustainable level of funding for the HTTC and tourism training and education in general. Establishment of a Tourism Training Policy Unit within the Commission for Tourism Tourism training and human recourse development policy at present within the responsibilities of the Commission for Tourism. However, there après to be no written policy or objectctive for tourism training and education or human resources development and responsibility for this is not within the Commission. There is a need to establish a training unit within the Commission for Tourism, which would assume responsibility for. -

• The identification and prioritization of training needs • Formulation of curricula standards and syllabi for tourism training at all

levels in co-operation of curricula standards the Education. • Approval of training establishments, ensuring that only those

establishment that meet the industry’s desired standards of facilities course content instruction qualifications etc, approved.

• Advising on the examination standards and system of award for tourism training at regulatory bodies and

• In response to identified training needs, co-ordination the delivery of required in service training through trainer programmer.

Establishment of Tourism Training Advisory Committee In carrying out the above tasks, the new training unit should be assisted by an Advisory Committee drawn from the industry.

Upgrading the HTTC There is a need to modernize upgrade and reequip the Hotel and Tourism Training Center it is recommended that technical assistance be sought from a bilateral or maltreat donor agency to assist with a review of equipment needs has already been provided to the Consultant. Train the Trainer Programmers To meet future training needs there will have to be a substantial degree of on the job training However this implies that the trainer must first themselves before they can train anyone else. There is need to recruit cadre of training with penalized area to develop the skills and knowledge of selected supervisory staff from the hotel restaurant and tour operator companies as well as other existing training officer in the tourism assistance a mobile training team of for example, three specialist train the trainer should be provided for six month each over a period of two years. Management Training Donor support should be sought for scholarship for young Zanzibar to attend tourism management training course in Utalii and other recognized colleges e.g. Similar to those provided for mainlanders under the recently concluded Irish aid project. Training Tour Guides There is need to formalize and upgrade the training of tour guides A tour guides should receive a license from the Commission for Tourism only after successful completion of a formal course in tour guiding, which should include English and other language course. Institutional Strengthening There is no planned training programme being implemented within the Ministry or Commission for Tourism. The training need is for planned programme of scholarships for selected staff to study abroad and a programme of recruitment

of suitable qualified personnel based on post description with clear objectives and performance criteria. Tourism Public Awareness Campaign The tourism industry needs the support of the general population if it is to flourish in Zanzibar’s traditional mainly Muslim society. The inherent advantages of tourism development to the domestic population must be emphasized social as well as economic and not just the economic aspects through a continuation of the public awareness campaigns that have already been launched by the Commission for Tourism. The public awareness campaign which it is hopes will give local people and communities a positive disposition of tourism issue in primary and secondary school subjects and the provision of advice to young Zanzibaris on the range of carrier opportunities available in tourism. 12.4 IMPROVING ACCESS TRANSPORT AND INFRASTUCTURE International Air Access Presently from Europe, Zanzibar has to rely mainly on charter flights from Italy and Spain The British Airways fights to Dar es- salaam have immediate onward connecting flights with local carries as do the Swiss Airline passenger arriving in Dar es- salaam A. large number of Europeans access Zanzibar via Nairobi with Airways. From November 2002 condor will be operating between Frankfurt/ Kilimanjaro Mombassa Frankfurt. Should be Zanzibar be able to attract more German tour operator to contract different Zanzibar hotel room allotments, then together Zanzibar and the tour operator my be able to interest Condor in flying Kilimanjaro Zanzibar from 2003. Airport Facilities Improvements Zanzibar airport facilities are in a very bad condition and give the visitor a very first and last impression of Zanzibar air from pushing forward the development of an airport master plan, which is to be funded via the Word bank, for the extensities of the runway from 2.462 m to 3.00m resurfacing the existing runway extension for main building plus installation of an ILS (instrument Landing System) etc. there is a need to action immediate can now take F 20 80 Air craft. Zanzibar Airport Improvements Working Action Group (ZAIWAG)

While the government has US$ 1.9 million income p.a ($ 1.4 million departure tax plus 0.5 million landing fees, etc) through the Zanzibar airport visa a Vis US $ 0.35 million operational expenses p.a over the past decade it appears that no capital improvement nor proper maintenance and repairs have been undertaken. There a number of issue and work needs to be undertaken immediately, which cannot wait a number of years until the airport master plan is implemented. These immediate actions can be funded from a number of days income earned at the airport (i.e.. c. US$ 5.000 per day). It is proposed that a ZAIWAG made up of public and private sector representatives be fumed to establish an immediate action plan and budget. Furthermore, together with the airport manger to ordinate and control its actual implementation. Harbors Ferry/Cruise Ship Facilities In 2000, after the Gibbs (UK) new container port facility feasibility study resulting an investment cost of US$ 40 million and due to the collapsing quay in the Zanzibar harbors, in 2002, a further EC funded study has been undertaken by HBC (Germany); HBC are now completing a master plan for upgrading the existing ferry and container harbors. The investment cost for the harbors rehabilitation has been estimated to be in the region of US$ 22 million, and thus less costly than the Gibbs proposal. Ferry passenger movements have increased over the year while cruise ship numbers have not been increasing due to the conditions at the port of entry. Table 12 Entry to Zanzibar by Sea. Year 1998 1999 2000 2001

Ferry in/out 7.18.700 808.700 679.600 838.00 No. Cruise Ships 45 38 42 38 (* Elections year etc.) The arrival/departure area for ferries and cruise ships and tends is very chaotic and disorganized (no marked/signed ways harassment, lack of safety no toilets etc.) There is a lack of co-operation and co ordination of the different entities

involved (Zanzibar port Corporation, Immigration, Customs, ZCT) It is proposed that a Post Impotent to be implemented. Ferryboat services between Dar es Salaam and Zanzibar have improved with the much faster transfer via the hydrofoil service. The condition and safety of most of the other ferries (life jackets, emergency exits) need to be addressed. Internal Access Infrastructure Internal access by roads needs to be improved with most of the roads to beach resort hotels are not paved and are still rough dirt roads. There is a complete lack of road signage. 12. 6 IMPROVING SECURITY There is lack of presence of police patrolling Stone Town in the evening, at a time when their presence is most needed. Furthermore at the airports at a time of large arrival and departure of passengers it appears police are not present to maintain law and order and restrict the harassment of visitors. It is not clear as to the necessity and present purpose of having the many police roadblock checks, which at time bring about long waiting periods and unnecessary discussions. This issue needs reviewing by the respective authorities. Presently 15 police officers are being trained to be tourist police/ wardens Further officers should be trained. They should be able to speak English and have background knowledge of the area, which they will be patrolling. Most of the larger hotels have to employ (usually 2) police officers to work part time with the hotel security guides in trying to improve security at the hotels As in other tourist destinations as hotel security guides after a time become usually too familiar with staff and people in the area the hotels should have a hotel security company to train, pool and rotate the security guides in the hotels. Do’s and Don’ts Visitors should be made aware of health and safety precautions, which they need to conduction. The same applies to the code of conduct to be observer on in

Muslim country It is proposed that Do’s and Don’ts leaflets as part of a welcoming note be distributed to visitors upon arrival and a in hotels. The Tourism Awareness Programmer by ZCT, Zanzibar’s should be also made aware of how they can contribute to making visitors safer during their stay in Zanzibar. 12.7 CREATING CREATER MARKET AWARENESS There is a need formulate an overall marketing strategy and plan, based on a realistic sustainable budget. This will be undertaken during October 2002 as part of the current EU technical assistance programmer. 12.8 STERENGTHENNG INSTUTIONS AND ECONOMIC LINKAGES Tourism Policy Statement In 1997 an extensive tourism policy statement was drafted. However to date this has neither been implemented nor ratified. There is a need for a realistic and implement able Zanzibar Tourism Policy Statement to be formulated, approved and published by government. The policy should then be implemented by ZCT. Public Sector Tourism Institutions There are five main types of national tourism agencies for tourism promotion and development, which have evolved over the past 30 years, i.e.:

• Autonomous, non-commercial tourism organizations – such as the Irish Tourist Board, the British Tourist Authority, Zimbabwe Tourism Authority;

• Non-commercial tourism authority, board or bureau within a Ministry – such as the Bahamas Tourist Board, the Sri Lanka Tourist Board and National Tourism Board in Hungary;

• Government Ministry – as in the case of Turkey; • Tourism foundations – as in the Dutch Caribbean Islands of the Caribbean; • Private sector agency such as the USNTO.

Within each category, the functions of the official tourist bodies vary according to the governmental structure and economic environment of the country concerned. However, in general these functions may be summed up as some combination of:-

• Destination marketing; • Marketing planning; • Product development planning, advice and stimulation; • Setting and monitoring of product standards, including grading/classification of

accommodation; • Tourist information services; • Research and statistics; • Promotion of access transport.

In the case of Zanzibar in 1996 a non-commercial Commission for Tourism was formed. This institution comes under the Ministry responsible for tourism. Apart from the above mentioned functions, the ZCT is also responsible for tourism sector licensing.

Strengthening the Zanzibar Tourism Institution The ZCT needs to be strengthened as follows:

• As per Part II, Section 4 (2) of the 1996 Act, the Minister should appoint a ZCT Tourism Advisory Board with public and private sector representatives;

• A review of the role, functions, job descriptions, operational efficiency etc. of the ZCT needs to be undertaken;

• There is a need to secure proper funding for the administrative personnel and necessary marketing expenditures;

• Have manpower training and study tours funding secured; • Having a better structured marketing and promotion co-operation with TTB; • Seek advice on establishing a reliable and comprehensive statistical data base and

Tourism Management Information System; furthermore, a more professionally developed Website is necessary;

• Revise and update legislation and regulations so as to have an effective tourism organization for Zanzibar in future years.

In order to expedite and secure implementation of the institutional strengthening process, the Government should seek technical assistance funding for a Tourism and Marketing Advisor for 2 –3 years along with a pool (6 man-months) of short term technical advisors and furthermore, funds for equipment, promotional material and manpower training/study tours.

Forming Private Sector Institutions A representative body for the tourism private sector needs to be formed in Zanzibar. A Founding Committee should be initiated. In the interest of Public – Private – Partnership (PPP) and as in the case of the establishment of the Tourism Confederation of Tanzania, start-up funding and assistance

should be sought for office equipment and possible subsidizing the Association’s Executive Secretary costs during the first year.

Strengthening Linkages with other Sectors of the Economy In order to maximize the socio-economic benefits of tourism as far as possible, the revenues received from international tourism must remain in Zanzibar and Tanzania, i.e. avoid as much leakage as possible brought about by paying for imported goods and services in meeting the needs of the tourists. The primary tasks associated herewith are:

• Identify all imported inputs to tourism and the extent to which these could be supplied by Zanzibar and the mainland;

• Communicate the opportunities that exist to substitute imported goods consumed by the tourism sector with those produced in Zanzibar and the mainland;

• Identify ways in which indigenous product sales to tourists can be expanded; Based on statistical data, i.e. recent BESO report on agricultural product needs of the tourism sector, local farmers and producers should be encouraged to produce relevant crops for supplying hotels and restaurants.

13. ACTION PLAN IMPLEMENTATION

13.1 POLICY ISSUES To successfully implement the master plan the government of Zanzibar must address a number of policy issues:-

• Tourism Policy Direction

• Role of the Public Sector • Strengthening Tourism Institutions • Encouraging Investment and Enterprise

Tourism Policy Direction

The Government of Zanzibar must make clear in a published policy statement the direction tourism will be taking in the future. The lack of clear policy in the past has resulted in a lower quality of tourism than it wished to promote. It must be made clear to all existing and potential investors what levels of service are expected and what will be tolerated. Potential investors who are unable be meet the defined quality levels in the policy should not be granted leases or planning permissions in the future. Role of Public Sector The role of the public sector in Zanzibar should encompass:-

• Infrastructure development and services to tourism areas and zones;

• Development planning (forward, control and enforcement) • Destination marketing;

• Registration, grading and inspection of tourism services; • Manpower planning and training

• Enterprise development • Security awareness

Strengthening Tourism Institutions

For a successful tourism industry the symbiotic relationship between the public and private sectors must be established and nurtured. The Tourism Advisory Board as provided for in the legal framework should be established along with a Zanzibar Hotel and Tourism Association in which both the public and public and private sectors co-operate and take joint responsibility.

Encouraging Investment and Enterprise

It is the essential role of Government to provide a positive climate for investment and entrepreneurship.

Tourism Plan Schedule Implementation of the plan requires that a wide rang of actions be undertaken either simultaneously or in methodical order. The tourism industry in Zanzibar is well established and if left to its own devices could potentially grow further. However, it is not achieving the quality that is desired and therefore there is an urgent need to intervene with policies and actions that will turn tourism into the desired path. Many of the actions may appear to be radical and to some extent will be resisted, especially in the areas of land use planning which in many respects is the key to improvement, for without changes and institutional investment the tourism product will remain static or decline in quality. Changes to institutional arrangements, manpower training and improvements to marketing will all be required in order to meet the new demand for a high quality product which satisfies high spending clients and the need s of foreign investors.

Responsibility For Tourism Plan Implementation Responsibility for overseeing the plan rests with the Commission For Tourism. However, the Commission only has direct control over those agencies that come under its influence. Implementation of the plan requires that a wide rang of institutions in the public and private sectors, non-government organizations, international donors etc. accept it. Financial resources will need to be forthcoming from central government and support from the international community in some important areas.

Further Support to Zanzibar Tourism Master Plan In order to develop an integrated approach to the sustainable long term development of tourism in Zanzibar and ensure successful implementation, the Tourism Master Plan will require further development, refinement and support in the following areas:-

• Institutional strengthening • Marketing

• Master Planning for Tourism Zones (physical, environmental, landscape)

• Eco-tourism Plan for Pemba • Carrying Capacity/LAC study and management for Stone Town • Interpretation plan

• Coastal Zone Management Plan

Plan Costs and Financing The cost of implementing the plan can be split between direct costs of developing and supporting the tourist industry in terms of marketing, training and product development and the cost of providing the necessary infrastructure and environmental measures need to maintain a high quality product. infrastructure investments not only benefit the tourism sector but the growth of all economic sectors and the Zanzibar community at large Table 13 Total Public Sector Investment 2003 – 2005 Component Euro (millions) ___________________________________________________ Technical Assistance 1.5 (48 man months) Institutional Strengthening and Human 0.75 Development Resources2 Marketing and Promotion 0.75 Product development 3 0.5 ____________________________________________________ TOTAL 3.5 ____________________________________________________

Notes 1. all figures are indicative and subject to detailed feasibility studies and

plans 2. does not include construction of a new tourism training school 3. tourism infrastructure or private sector costs not included

Table 14 Estimate of Infrastructure Development Project Estimated Cost Construction of roads to tourist areas:-

Unguja – Northern and South East Zones Pemba – Northern and West Zones

Euro 9 million Euro 5 million

Works to airports Unguja and Pemba Euro 2.2 million

Waste disposal facilities Unguja and Pemba

Euro 10 million

Sewage treatment Stone Town Euro 12.5 million

Notes 1. all figures are indicative and subject to detailed feasibility studies and

plans The sources for financing and implementation of the Tourism Plan are:-

• Multilateral aid programmes • Bilateral aid programmes

• Public funds in Zanzibar

• Private funds in Zanzibar • Private foreign investment

It will be necessary at Government level to ascertain the extent of support that will be forthcoming from bilateral and multi-lateral sources.

Recommended Priority Action Programme Table 15 Summary of Recommended Priority Actions 2003 – 2005 Programme Actions Agents

Improving Knowledge and Know How

� Tourism Satellite Accounts

� Statistical database

� Commission For Tourism

� Immigration Department

Attracting Investment Capital

� Overhaul tourism tax and fee regime for tourism sector

� Review land leasing regulations

� Create Land Bank and promote sites to investors

� Revenue Authority � Commission for Land

and Environment � ZIPA

� Review existing non active leases and withdraw sites as required

� Increase promotion activities

Improving Service Standards

� Establish Tourism Training Advisory Committee

� Formulate manpower training policy plan

� Scholarships for young Zanzibaris entering hotel management

� Hotel and tourism management training

� Customer care training for police officers, customs and immigration officials

� Training courses for tour guides

� Upgrading and expansion of HTTC

� Train the trainer programmes started

� Initiate public awareness campaigns

� Commission For Tourism

� Donor Agencies � University Dares

Salaam

Improving Infrastructure

� Develop integrated solid waste disposal plans

� Seek investment for solid waste disposal facilities

� Government of Zanzibar

� Commission for Land and Environment

� Ministry of Regional administration

� Municipalities � Donor agencies

Improving Access � Improvements to Zanzibar Airport

� Improvements to Zanzibar Port facilities for tourism traffic

� Ministry of Communication

Improving the Product

� Adopt Tourism Policy Statement

� Provide resources and increase institutional

� Government of Zanzibar Commission For Tourism

� Commission for Land

capacity of development planning

� Complete planning schemes for tourist zones

� Direct infrastructure development to selected zones

� Introduce completion bonds for land leases

� Remove low grade developments

� Introduce accommodation development fund

and Environment � Donor agencies

Tourism Development Pemba

� Eco-tourism Plan for Pemba

� Commission For Tourism

� Commission for Land and Environment

� Ministry of Agriculture and Fisheries

� Local stakeholders � Donor Agencies

Environmental Protection

� Strengthen planning and environment units

� Develop whole island (Unguja and Pemba) Coastal Zone Management Plans

� Provision of fisheries protection vessels

� Provide permanent anchor buoys in sensitive areas

� Protection of marine species

� Government of Zanzibar

� Commission for Land and Environment

� Ministry of Agriculture and Fisheries

� Local stakeholders � Commission for

Tourism � Donor agencies

Creating Greater Market Awareness

� Formulate marketing strategy

� Revising and updating web based advertising

� Commission For Tourism

Strengthening Institutions and Economic Linkages

� Establish Zanzibar Hotel and Tourism Association

� Establish Tourism Advisory board

� Stakeholders � Hotel

owners/managers � Commission For

Tourism Cultural Awareness � Undertake carrying

capacity study for Stone Town

� Improvements to interpretation and information at cultural sites

� Develop closer working relationship between Commission for Tourism and Ministry of Education Museums and Archives

� Stone Town Conservation and Development Authority

� Commission For Tourism

� Zanzibar Municipal Council

� Department of Archives, Museums and Antiquities

� Commission for Land and Environment

� Stakeholder groups Improving Security � Increase police presence in

Stone Town and at air and sea ports

� Government of Zanzibar

Developing Linkages with other sectors

� Identify and promote links between tourism and other economic sectors

� Promote local products to tourists

� Commission For Tourism

APPENDIX A ECONOMIC IMPACT TOURISM

Currently, there are no official estimates of tourism’ contribution to Zanzibar’s economy. However, two surveys are in progress – one a Visitors Exit Survey and the other a Survey of Tourism Establishments –, which will lead to the provision of improved data on the economic significance of tourism both in Zanzibar and in Tanzania as a whole. These surveys are being carried out under the supervision of a Working Group comprising representatives from the Ministry of Natural Resources and Tourism, the Bank of Tanzania, the National Bureau of Statistics, the Immigration Development and the Zanzibar Commission for Tourism.

The estimates that follows are based on available data and should be regarded as preliminary and subject to revision once more detailed analyses are completed.

1. GENERAL ECONOMIC SITUATION

Trends in Economic Development

Gross Domestic Product (GDP) is estimated to have increased at current prices from Tshs. 1123 billion in 1998 to Tshs. 208 billion in 2001, representing an average annual growth rate of just under 20% in money terms. After allowing for the effects of price inflation, the real rate of growth is currently around 4-5% per annum.

In 2001, the Agricultural sector accounted for 39.3% of the total GDP, but of this approximately half (48% in 1997) consisted of subsistence rather than monetary production. The next largest sectors are Public Administration and services. 23% of total GDP in 2001,and Trade (which includes the Hotels and Restaurants sub-sector). 18.4%. In contrast, the Manufacturing and Handicrafts sector accounted for less than 5% of GDP in 2001. Further details are given in Table A1.

Table A1 Gross Domestic Product at Current Factor Cost by Industry, 1998 – 2001 Industry 1998 (P) 1999 (P) 2000 (P) 2001 (P)

Tshs. mn. Tshs. mn. Tshs. mn. Tshs. mn. Agriculture of which - Crops - Other

40,344 25,692 14,653

47,258 28,292 18,966

59,029 36,882 22,147

81,812 57,487 24,325

Mining and Quarrying

521 542 461 586

Manufacturing and Handicrafts

8,033 8,402 8,926 9,270

Electricity and Water Supply

1,722 1,894 2,427 2,609

Construction 5,174 5,770 3,897 10,663 Trade of which: - Wholesale

and Retail - Hotels and

Restaurants

26,428 19,288 7,140

31,562 24,064 7,497

34,515 26,134 8,381

38,227 29,751 8,476

Transport and Communication

6,597 7,631 9,543 11,722

Finance 2,825 4,334 4,696 5,478 Public Administration and services of which: - Public

Administration

- Community and Social Services

31.209 22,883 8,325

34,125 25,424 8,701

40,857 31,729 9,128

47,766 37,993 9773

Imputed Bank Service Charges

(174) (1,685) (223) (48)

Total GDP 122,678 139,834 164,128 208,085

Per capita GDP(Tshs.)

142,063 157,213 179,153 220,518

Per capita GDP (US $)

219 203 224 248

Source: Office of the Government Statistician, Ministry of Finance and Economic Affairs: Provisional estimates.

Population and Labour Force

According to the Office of the Government Statistician, the total population (permanent resident population ) of Zanzibar was just under one million persons (944,000 persons0 in 2001 (mid – year estimate); of which roughly 60% were resident in Unguja and 40% in Pemba . More precise details will be available when the results of the 2002 Census are complied.

There are no published recent data on the size or composition of the labour force, or the number; employed persons.

However, based on the results of the Tanzania Labour Force Survey 2000/01. It is estimated that some 44% of the total population is economically active, and that around 42% is currently employed. It should be noted that a person is counted as currently employed if he/she had at least one hours work in the previous seven days, or has been temporarily absent from work during the same period.

In 1992, about 60% of the total labour force was engaged in Agriculture, Forestry and Fishing, but (reflecting the large element of subsistence farming) this sector accounted for only 12% of total wage earners. In 1995, some 43% of all wage earners were engaged in the services sector, including public administration.

Living Standards

Per capita GDP is estimated to have increased from $248 over the period 1998-2001.

Socio – Economic Development Goals.

The overall socio-economic development goal for Zanzibar, as set out in the Government’s Vision 2020, is to eradicate abject poverty and to attain sustainable human development by the year 2020.

The realization of this objective is predicated on meeting the following challenges.

• Attainment of high and sustainable economic growth; • Transformation of the economy from a predominantly rural-based

subsistence agricultural economy to a diversified and semi-industrialized economy with a modern rural sector;

• Promotion of sustainable tourism that emphasizes high quality development;

• Having a well developed and effectively utilized human resource; and

• Attainment of full employment by the year 2020. Specific objectives include the attainment by 2020 of

• An economic growth rate averaging 9 – 10% per annum over the period; • A high level of employment in the modern sector (50 to be employed in

tourism and free zones; 20 % in agriculture and 30% in all other sectors). • An increase in income per capita from $200 to the level of middle income

countries; and • A diversified and semi-industrialized economy, with the combined

contribution of tourism, trade, manufacturing and construction reaching over 60% of gross domestic product.

2. CONTRIBUTION TO GROSS DOMESTIC PRODUCT Background

The tourism sector is not yet separately identified in the system of national accounts used in Tanzania, including Zanzibar. Among the difficulties are the fact tourism straddles many other sectors such as transport and commerce as well as the hotels and restaurants sub- sector(which is often assumed to be coterminous with the tourism sector) and that the goods and services provide by tourism establishments are consumed by local residents as well as international and domestic tourists. To overcome these difficulties, the recommended practice adopted in other countries is to establish a ‘satellite account’ for the tourism sector within the system of national accounts.

In the absence of better data, two methods have been used to measure tourism’s contribution to GDP. The first (output approach) is to assume that a certain proportion of the output of various economic sectors is tourism-related and ten to express the resulting sum as a percentage of total GDP; the second (expenditure approach) is to express net tourism earning as a proportion of GDP (or as a proportion of value added in the tertiary sector).

Output Approach

If the same co-efficients as derived by the National Bureau of Statistics for Tanzania as a whole were applied to the estimates of Zanzibar’s GDP, tourism’s share would be approximately 113% in 2001 as shown in Table A2.

Table A2 Share of GDP Ascribed to Tourism, 2001

Value Added Tshs.mn.

Tourism Share*% Tourism Share Tshs.mn.

Agriculture 81,812 0.44 360

Trade (including Hotels & Restaurants)

38,227 61.17 23,383

Transport & Communication

11,722 23.42 2,745

Finance 5,478 0.10 5

Public Administration & Services

47,766 0.59 282

Total – Tourism 26,775

GDP 208,085

Tourism share (%) 12.87

* as determined by National Bureau of Statistics and Tourism Division, Ministry of Natural Resources and Tourism for Tanzania as a whole

Source: Consultant’s estimates

Expenditure Approach

The starting point for this analysis are the estimated gross earnings from tourism.

According to the preliminary results of the International Visitors Exit Survey (carried out over the period July 30- September 15, 2001) international visitors to Zanzibar spent an estimated $ 46 million in 2001.

Being based on results for the peak season only, this figure may need to be revised downwards when more complete information becomes available. On the other hand, the estimate excludes earnings from international foreign visitors in Zanzibar on flights from the mainland. Including the latter gives a revised figure of $ 55 million for gross visitor expenditure in 2001(based on a total of

91,000 international visitors, an average daily expenditure of $120 and an average length of stay of five days per international visitors).

However, it would be correct to use the estimate of gross visitor expenditure to measure tourism’s GDP contribution. This should be measured net of the imports of goods and services from mainland Tanzania as well as from foreign countries. Measures based on gross tourism receipts include the value of such imports and therefore result in an overestimate of the contribution of tourism to GDP.

However, there is no precise data on the value of goods and services imported to meet the needs of the tourism sector, or therefore on the proportion of total visitor expenditure.

It is estimated that Zanzibar received a total some 121,000 visitors in 2001, comprising 76,000 international visitors included in the official statistics, an estimated 15,000 who traveled to Zanzibar no internal on internal flights and an estimated 30,000 domestic visitors. The expenditure of the domestic visitors has been excluded from the estimate of foreign exchange earnings.

Accounted for by such imports. Given the present size and structure of Zanzibar’s economy (which is predominantly based on agriculture), it is probable that the tourism sector needs to bring in a substantial proportion of its inputs of goods and services from the mainland and other countries.

Applying provisional estimates of the import component for each main category of expenditure (accommodation, food and beverage, transportation, etc) as given in the Exit Survey, it is calculated that, in 2001, imports from mainland Tanzania and abroad represented some 40% of gross international visitor expenditure in Zanzibar5. This figure, which would tend to be higher for all- inclusive clubs and lower for locally-owned properties, implies that import leakages from gross tourism receipts represented some 9% of Zanzibar’s GDP in 2001.

On this basis (which can be considered a reasonable working hypothesis until more accurate data become available), the net contribution of tourism to the Zanzibar economy was around Tshs. 29 billion in 2001, representing some 14% of GDP. Details are shown in Table A3.

Table A3 Net Revenue from Tourism as % of GDP, 2001

Gross Domestic Product (Tshs. mn.) 208,085

Estimated Gross Visitor Expenditure - US$ million - Tshs. million

55 48,895

Loss of earning Via imports(%) 40% Net revenue from tourism - US$ million - Tshs. million

33 29,337

Net revenue from tourism as a % of GDP

14.1%

Source: Consultant’s estimates

Comparison of Results

Tourism’s contribution to GDP in 2001 has been variously estimated at 13% (output approach) and 14% (expenditure approach). While neither neither estimate can be regarded as robust, the latter – higher figure – is preferred as it is partly based on survey information.

3. CONTRIBUTION TO FOREIGN EXCHANGE EARNINGS

Gross earnings from international tourism are estimated to have amounted to some $55 million in 2001.

A limited survey of hotels and lodges in Tanzania’s Northern Circuit indicated that leakages to the outside world represented about 27% of total revenues. The corresponding figure for Zanzibar would be expected to be higher given that it include imports from the mainland as well abroad.

4. CONTRIBUTION TO EMPLOYMENT

Expenditure by tourist and other visitors has direct, indirect and induced effects on employment.

Direct employment: this category consists of employment generated by expenditure of tourists on goods and services in hotel, restaurants, shops, and other tourism services.

Indirect employment: this category consists of the employment generated by suppliers to the tourism sector e.g local food and beverage suppliers that employ people to meet the needs of the hotel, etc. sector.

Induced employment: this category consist of the employment generated in other sectors of the economy resulting from the increased consumption expenditure of people who earn income from tourism, whether directly employment.

The employment multiplier can be expressed in two ways: either in terms of the number of indirect and induced jobs generated by direct employment. or the number of indirect and induced jobs created by each unit (or additional unit) of tourism expenditure. Measurement requires sophisticated techniques, such as input –output analysis, which are presently not available for Zanzibar.

Direct employment

While there no official estimates or published data, it is estimated that currently some 5,800 persons are directly employed by the tourism industry in Zanzibar, of whom approximately 4,400 (76%) are employed in the hotel/guest. Sub-sector. The remainder are employed in tourists restaurants, tourist shops, ground tour operators, tour guides, airlines (state-owned and private) the Commission of Tourism and other tourism related government departments or as authorised tour guides. This amounts to approximately 16 job international visitors compared with the figure of 15 visitor quoted in the Torism Policy Statement. Details are shown in Table A5.

Table A5 Estimated Direct Employment in Tourism,2001

Source: Consultant’s estimates

Sub-sector Total staff %

Hotel /Guest Houses 4,400 76.2 Tourist restaurant and shops

300 5.2

Tour guides 325 5.6 Ground tour operators 500 8.7

Airlines, dive operators etc.

100 1.7

Ministry/ Commission for Tourism /Parastatals

150 2.6

Total 5.775 100

The above figures comprise persons employed in activities that are directly serving visitors and receiving their income from tourist expenditure, and include only these who are mainly serving tourism marketing. Naturally, there are many others, such as person working in restaurants and shop, who receive part of their income from tourist expenditure, but, in the absence of special surveys, it is difficult to ascertain how much of this employment is tourism-related.

There is need for more comprehensive and accurate information on employment in the tourism sector. As with tourism’s contribution to GDP, this requires a new definition of what constitutes the tourism sector and the estimation of the proportion of employment in each sub-sector making up the newly defined tourism sector that is tourism-related.

Total tourism-generated employment

As date on the in director and induced effects on employment in the tourism sector is not available, another method has been used for estimating the full employment contribution of tourism. This involves taking the employment/GDP contribution ratio for the non-agricultural sector (which allows for the fact that agriculture is more labour intensive than other sectors) and applying it to tourism’s share of GDP.

On the assumption that employment/GDP ration for tourism is the same as for the non-agricultural sector as a whole, tourism would have accounted for approximately 9% of total employment in 2001. Assuming a total labour force of around 396,000 persons, this translates to some 37,000 persons as shown in Table A6.

Table A6 Total Tourism Employment Generated by Tourism, 2001

Non-agricultural sector

- GDP contribution (%)

- Employment contribution (%)

- Employment/GDP ratio

60

40

0.67

Tourism’s GDP contribution (%) 14

Tourism’s employment contribution (%) 9.4

Total employment (persons) 396,000

Tourism’s employment contribution (persons) 37,200

Source: Consultant’s estimates

Based on the above analysis, it is estimated that the ration of direct to total employment generated by tourism in Zanzibar in 2001 was approximately 1: 6 i.e. each directo job created ultimately generates around five other jobs (or full-time job equivalents) in other sectors of the Zanzibar economy. This may seem high, but perhaps not in the context of the definition of what constitutes a job (one hour worked in the previous seven days).

Another way of looking at the employment generation effects is to relate these to the number of jobs sustained by the net expenditure on tourism i.e 37,000 jobs from $ 33 million net expenditure in 2001, or one job for every &892 in net expenditure.

5. CONTRIBUTION TO GOVERNMENT REVENUES

The contribution of tourism to Government revenues includes the main taxes on tourism businesses (namely, VAT and corporate income tax) and the airport departure charge (service charge) levied on departing air and sea passengers. The various permits, licences and fees payable by tourism operators are also a form of taxation, and are regarded as being both unduly numerous and onerous.

VAT is paid at 20% by any registered company with a turnover exceeding Tsh. 15 million per annum. Below that level, and applying mostly to small hotels; and 10% for restaurants, Personal income tax and corporate tax are payable at 17%-40%(PAYE)and 30% on profits, respectively.

According to information provided to the Consultant by the Zanzibar Revenue Board, some Tshs. 3.0 billion was raised in fiscal year 2001/02 in direct taxation from the hotels, restaurants and tour operators from VAT and sales levies, of which the great bulk (87%) was generated by VAT on hotels.

The airport and seaport service charges contributed a further Tshs,1.6 billion, of which tourists may have generated approximately half, i.e. Tshs. 800 million.

There is no precise data on the amount of other taxes, including personal income tax and corporate tax revenue from licences and fees, import duties, etc generated by the tourism enterprises and their employees. However, if it were assumed that tourism share of such taxes, etc. was the same as its share of GDP (i.e.14%) the tourism sector would have generated a further Tshs. 4.2 billion to Exchequer in 2001/02 Thus, total tourism generated government revenues could have been as much as Tshs. 8.1 billion in the last fiscal year.

In 2001, tax and other receipts from the hotel sector represented around 19% of total government revenues. Details are given in Table A7.

With a more comprehensive revenue collection system and the inclusion of all government revenues generated by the wider tourism sector, the contribution would increase. The present dual tax system VAT for some levy for others is said to be harmful to the tourism industry. It has been suggested that the VAT should be applied to all hotels, guesthouses, and other tourism operators and all other charges, fees and licences removed, or reduced.

Table A7 Contribution of Tourism to Government Revenues,2001/02

. 2001/2002(July-June) Tshs.mn.

VAT - VAT local,of which - Hotels - Restaurants - Tours - Sub-total

(8;771) 2,612 84 132 2,828

Hotel Levy 162 Restaurant Levy 37 Tour Operation Levy 15

Airport Service Charge Seaport Service Charge Sub-total Tourism share (estimated at 50%)

1,184 460 1,644 822

Income tax 3,608 Import duties 15,488 Other indirect taxes 10,968 Sub-total 30,064 Tourism share (assumed to be 14%) 30,209

Total tourism –related 8,073 Total Government Revenues 42,241

Tourism – related Revenues as % of total

19.1

Sources:

i) Zanzibar Revenue Board ii) Ministry of Finance and Economic Affairs

iii) Consultant’s estimates

6. TOURISM’S ECONOMIC CONTRIBUTION IN 2012 This section examines the future contribution of tourism to GDP, foreign exchange, employment and government revenues in Zanzibar. Contribution to GDP The contribution of tourism to GDP will depend on the rate at which the economy grows, the rate at which gross revenue from tourism increases and the proportion of the revenue that remains within Zanzibar, Growth of GDP According to Vision 2020, by the year 2020, Zanzibar should have attained a high and sustainable rate economic growth, averaging 9 – 10% per annum from the current level of 4.5%. The expected growth between the years 2000 to 2005 is between 5 – 6% per annum at 1985 prices, rising to between 7 – 8% per annum by 2010 and attaining the level of between 9-10% per annum by 2020. Attainment of these growth targets would result in a doubling of GDP between 2001 and 2012. Estimates of tourism revenue International tourism arrivals (i.e excluding domestic visitors) are projected to increase from an estimated 91,000 persons in 2001 to around 180,000 persons in 2012, generating a total of approximately one million bed-nights in the latter year. Assuming an increase from $120 to $150 in the average expenditure per person per day in real terms, gross visitor expenditure would amount to $150 million in 2012 compared to an estimated $55 million in 2001, and even more if the spending of domestic tourists were included. The estimates of tourism are gross estimates i.e the value of imported inputs is included. The proportion of gross revenue from tourism that is lost through imports (estimated at 40% in section 2.3) should decline over time as the Zanzibar economy develops. Growth in the economy, and in the structure of the economy, is likely to result in some degree of import substitution for tourism, with a grater proportion of requirements of goods and services – especially

foodstuffs- likely to be produced locally rather than imported from other parts of Tanzania or from abroad, especially over the longer term. Strategies to speed up import replacement for tourism are likely to be medium to long-term in their effects and are likely to have only a small impact before 2012. Thus, the leakage of gross earning via imports is assumed to be 35% in 2012. On the basis of the above assumptions, tourism’s contribution to GDP is projected to increase from an estimates 14% in 2001 to around 21% by 2012 ( as shown in Table A8), which implies that tourism will grow considerably faster than other sectors of the economy. The projected average annual growth rate for net tourism earnings is over 10% for the period 2001-12, compared with 7-8% per annum for the economy as a whole. Table A 8 Tourism’s Contribution to GDP, 2001 – 12

2001 2012

Gross earnings - US$ million - Tshs. billion

55 49

150 133

Proportion of Imports (%)

40 35

Net earnings (Tshs. billion)

29 86

GDP (Tshs. billion) 208 416(i)

Contribution to GDP(%) 14 21

Note: US$ are converted to Tshs. at the rate of US$=Tshs. 889 (the average rate for 2001). Source: Consultant’s estimates based on Vision 2020 target growth rates Contribution to foreign exchange earnings Table A 9 brings together the estimates of international visitor expenditure, or gross foreign exchange earnings, from Table A 8 with the assumptions for the levels of leakages through importation of goods and services from outside Tanzania. Net foreign exchange earnings are projected to increase from an estimated $46 million in 2001 to $116 million in 2012. Table A9 Estimates of net foreign exchange earnings from tourism, 2001 – 12

2001 2012

Gross foreign exchange earnings from international tourism (US$ million)

$55 million $ 133 million

Import leakages outside Tanzania (%)

17% 13%

Net foreign exchange earnings from international tourism (US$ million)

$46 million $ 116 million

Source: consultant’s estimates Contribution to employment While government plans do not indicate targets for employment growth, Zanzibar Vision 2020 envisages that as much as 50% of all jobs in the modern sector could be provide in tourism and the free zones by 2020. Tourism’s future contribution to direct employment is calculated on the basis of the forecasts of the number of rooms and beds required to meet the project number of tourist arrivals, with assumptions(admittedly very broad) about indirect and induced multiplier effects. The results are given Table 10 which shown total –generated employment rising from an estimated 37,000 jobs in 2001 to around 48,000 jobs in 2012. It should be noted that the employment figures are full- time jobs, or full – time job equivalents in the case of persons (e.g. tour guide, souvenir vendors) who may derive only part of their income from tourism. The total number of persons either fully or party dependent on tourism as a source of livelihood is therefore grater than the employment figures alone would suggest. Table A10 Contribution of Tourism to employment, 2001 to 2012

2001 2012 Accommodation 4,400 5,000 Other direct 1,775 3,000 Indirect (i) 12,350 16,000

Induced (i) 18,525 24,000

Total 37,050 48,000

Source: Consultant’s estimates Notes: (i) estimated at two jobs for every direct job (ii) estimated at one job for every direct + indirect job Dividing the estimates of net tourism earnings in Table A9 by the above estimates of total tourism employment, it is calculated that net expenditure per job will increase from approximately $892 in 2001 to around $1,792 in 2012. Contribution to government revenues Change to the tax regime and the level of tax incentives provided by government for the development of different industries will be have an impact on the contribution of the tourism sector to government revenues. It is not possible to estimate with any precision the impact of such changes on the future contribution of tourism to government revenues. However, it is calculate what the potential contribution of tourism government revenues might be if all tourists earnings were taxed at the AT rate of 20% currently levied on the large hotel sector. The results of this exercise indicate that the potential tax yield could increase from a notional Tshs. 8 billion in 2001 to around Tshs. 21 billion in 2012. The figures exclude other tourism-related taxes and charges (such as the airport departure tax) as well as any new tourism taxes that might be introduced between now and 2012. A good case could be made for allocating a certain fixed percentage of tourism-generated government revenues to the ZCT for tourism promotion ad other activities. A figure of 5% would generate around $500,0000 for ZCT in 2006, and $1,000,000 in 2012, assuming that the potential tax yield were fully realized. Reliability of the Estimates Prediction for variables such as GDP and employment become increasingly subject to change as the period over which the forecast is made becomes longer. It would therefore be prudent to regard the foregoing estimates for the GDP , foreign exchange, employment and revenue contributions of tourism as subject to possibly wide margins of error. Rather than introduce arrange of forecasts for the main variables (which is one way of dealing with uncertainty but which be comes cumbersome as the number of variables increases), a better solution is update the estimates regularly.

It is recommended that in order to improve measurement of the economic impact of tourism further research should be undertaken on the following: - Development of improved measures of tourism’s contribution GDP e.g.

by following the WTO’s guidelines for the establishment of tourism satellite accounts;

- Measurement of tourism income and employment multiplier effects; - Measurement of economic linkages between tourism and other sectors (

for example, using input-output analysis); - Measurement of leakages from the Zanzibar tourism sector to mainland

Tanzania and abroad; and - Improvements to the coverage, measurement and timeliness of tourism

supply and demand spastics. This research should be co-ordinated by the ZCT , working in close co-operation with the statistics Bureau and other relevant agencies. The University should also be encouraged to participate in an ongoing tourism research programme. 7. LINKAGES WITH OTHER SECTIONS General Government policy should aim at increasing the proportion of the revenue from tourism that remains in Zanzibar by encouraging greater linkages between tourism and other economic sectors, and reducing leakages of tourism revenues through implementation of import replacement strategies. Given that Zanzibar is primarily an agricultural economy, with as yet underdeveloped manufacturing and services sectors, it follows that the main scope for developing increased linkages between tourism other economic sectors lies in the promotion of increased purchases of local foodstuffs by hotels and restaurants. 7.This section draws on a recent report prepared by a British terms which visited Zanzibar from February 24th to March 9th ,2002

Fresh foodstuffs A high proportion of the fresh foods required by tourist hotels and restaurants – which the exception of fish, fruit, eggs and poultry, spices and, at certain seasons, some vegetables – is imported from mainland Tanzania, Kenya, South Africa or even further a field. The scale of this potential loss is indicated in Table A11, which (based on indicative sample survey of buyers, produce, supplier and fresh food producers) shows the approximate percentage of these foods that can be produced in Zanzibar which are in fact sourced locally;

Table A11 Share of Fresh Foods Locally Sourced by Hotels and Restaurants

Fresh Food Item %Sourced in Zanzibar (estimate)

Comment

Fish and seafood 90% Some shellfish bought from Mainland Tanzania

Fruits 80% Stone seasonal impon from mainland Tanzania and Kenya

Eggs 75% Mainly from ZAPOCO and smaller supplier; some bought from mainland, Kenya or South Africa.

Herbs and spices 60% Most spices and spice mixes are abundantly available in Zanzibar

Poultry 50% Same source as eggs; concerns about food safety

Vegetables 20% Bulk of supply comes from mainland and Kenya; more sourced locally in wet season.

Meat (excluding poultry) 10% No intensive livestock rearing or abattoirs on Zanzibar; plans to establish Disease Free Zones may bring changes.

Milk and milk products 5% Most hotels buy UHT milk from mainland, Kenya or South Africa; local milk quality considered doubtful

Honey 5% No honey collection and processing centre in Zanzibar

Jams, pickles, chutneys 5% No effective local fruit and vegetable processing centers.

Staples(cereals, potatoes, cassava, sweet potato)

2% Most hotels assume that tourists want European staple foods which are little grown in Zanzibar

Source: BESO Report, March 2002 Some hotels and restaurants, particularly the smaller and locally – owned ones, source a higher proportion of their food requirements from local farmers and fishermen than the average figures in Table A11 suggest. They are able to do this partly because the quantities they require are relatively small, partly because they close links with local communities, and partly because they take positive action to support and promote local production. The reasons given by other hotels for not buying more food locally are uncertainty regarding the quality and reliability of supply, unpredictable demand, and some cases uncompetitive prices. However, a higher proportion of the foods required could be produced and sourced locally if finance and production inputs were available, along with technical guidance market information, and food storage and processing facilities.

Producer Co –operatives Farmers and fishermen need to organize themselves in associations to facilitate dealings with buyers as well as to gain access to inputs and services. Few individual producers can assemble the quality and range of foods required. At present, most hotels place orders with independent suppliers who buy what is needed from individuals or groups of farmers of from local markets, and deliver the food to the hotels. Many of these suppliers buy what they need at the central market in Stone Town (where most of the produce on sale comes from the mainland) rather than pursuing the more complicated approach of seeking local sources.

Expending the Range of local Food Products Many locally grown Zanzibar food products are seasonal (e.g. fruits, vegetables, spices) or unfamiliar to tourists (cassava, sweet potatoes, breadfruit, etc). There are opportunities for extending the range of products that farmer can supply to tourist hotels (i) by promoting local food recipes in hotel menus and (ii) by processing perishable foodstuffs. Food Processing Opportunities exist for small enterprises to process several agricultural products – fruit, juice, jams, spice mixes, chutneys, milk, honey essential oil, etc, most of which are imported. Market analysis, training and finance will be needed to enable Zanzibar entrepreneurs to take advantage of these processing opportunities. Import Restrictions Import restrictions on foods which can be produced locally would help local farmers to establish themselves in the face of competition, but such action would have to be taken with care to avoid the risk of creating inefficient monopolies. Small and Medium Enterprises. Small and maedium-sized enterprises make a range of products including hand-woven material, metal tools, furniture, soap, salt, handcrafts, cultured milk, essential oils and spice mixes, etc. Nearly all are hampered by lack of finance, infrastructure, technical knowledge and a clear understanding of the needs and opportunities of the market. Construction Materials Many of the smaller hotels, such as Chumbe Matemwe, etc as well as some larger ones, make use of local construction materials, furniture are furnishing where feasible, including Casuarinas and mangrove poles, bulling blocks, wood floorings and furniture, coconut or banana leaf that on etc. More hotels could be encouraged to do the same, entering into contracts with SMEs for installation and supply of the necessary materials. Handicrafts A part from Zanzibar chests and other wooden items, most of the souvenirs and handicrafts sold in tourist shops are imported from mainland Tanzania, Kenya or India. Shopkeepers should be encouraged to buy locally – made handcrafts.

However, there is no facility for teaching young people the skills needed to produce and market handicraft items made from wood, straw, cloth spices, etc. A handicrafts Training Centre would help to ensure a supply of appropriate items of acceptable quality. It is recommended that such centers should be established on both Unguja and Pemba. Both Centers should also have facilities for bottling of fruit juices, pulps jams and jellies, processing of foodstuffs for chutneys, pickles, pickles, biscuits; solar drying of fruit, anf packing of spices and local specialties such as honey- based halva. Hotel and restaurant buyers could then visit such centers and special events could be organized to increase awareness of locally – produced items. The recently- constructed handicrafts market at Kiwengwa (East Coast) may not be as convenient for hotel guests as the availability of on – site sales outlets. Investment climate Tourist hotels, small enterprises, food suppliers and producers all need finance on affordable terms, both for long term investment in buildings and equipment and for short-term working capital. The lack of suitable funding sources is a major constraint to sustainable tourism development in Zanzibar. Existing financial institutions, such as the people’s Bank National Micro finance Bank and the few private banks operating in Zanzibar, do not lend to farmers because of risk and lack of collateral. Without a source of loan finance on normal or advantages terms, the SME sector in Zanzibar cannot be expected to thrive. The savings and credit co-operatives which CARE International is promoting can fill part of the funding gap. Negative Impacts of Tourism While tourism has created undoubted benefits for many Zanzibaris by creating jobs, markets for food and other commodities, improved infrastructure, etc, - there are downside too, including

• Competition for scarce resources resulting in food price rises and shortages of certain foods to local population e.g. fish;

• Growing resentment when jobs are taken by non-Zanzibaris and seeming preference is given to outsiders;

• Dumping of rubbish, deforestation, soil and water pollution, wastage of power and water, etc. – which put the environmental sustainability of the industry at serious risk; and

• Social and cultural tensions between hotels, visitors and the host populations.

The costs and benefits of tourism need to be carefully monitored and steps taken to improve the net benefits to the local population. It is important to promote positive impacts and to avoid social tensions by ensuring that economic benefits reach the population surrounding tourist hotels, by encouraging cultural exchanges and by sensitizing both tourisms and local people to each other’s cultural norms.

Summary of Main Recommendations to Increase Linkages The major recommendations for fostering increased linkages between tourism and other economic sectors (especially local food production and sourcing), and reducing the negative impacts of tourism, are as follows:-

a) Tourist hotels should be encouraged to invest in local production of the foodstuffs they want to buy, by pre-financing the supply of inputs (seeds, agrochemicals, irrigation equipment, fishing boats, tackle, etc.) to farmers and fishermen and, where necessary, production equipment to local small farmers or farmers’ co-operatives;

b) The Ministry of Agriculture should provide technical advice and set up a market information service for farmers and food suppliers to help them to plan their production and to negotiate on price; the proposed Marketing Unit should also monitor the impact of local food sourcing and food imports on local food prices and availability;

c) Local NGO’s should provide organizational support to farmers and food suppliers to enable them to understand and take advantage of market opportunities in touris;

d) Food storage and food processing facilities should be established near the growing areas, to widen the range of products that can be sourced locally and to extend the period through which they can remain available;

e) Unnecessary imports of fresh foods should be restricted, but only where locally produced substitutes can be found; care should be taken not to create an inefficient monopoly;

f) Financial and technical assistance should be provide to SMEs in food processing, hotel construction, wood and metal industry, and handicraft manufacture; existing financial institutions are often reluctant to lend to small farmers; savings and credit co-operatives (such as the one formed in Pemba by the Misali Island Conservation Association are a good alternative);

g. Consultative planning with local community representatives; and h. Intensive training of Zanzibar nationals for employment in the tourism industry 8. INCREASING THE FROM TOURISM ECONOMIC BENEFITS Strategies for increasing the overall economic benefits, from tourism included: - Encouraging a higher level of visits (e.g via marketing and information

dissemination) the most desirable markets may be those that generate a lower number of higher spending tourists who are likely to create fewer environmental or social problems of congestion and overuse of tourist attractions, facilities, services and infrastructure at they sites, on the other hand, tourists who engage in eco-tourism and village tourism will bring more benefits to local communities even though those tourists may spend less overall than tourists staying in larger resorts;

- Encouraging a longer length of stay (e.g by developing attractions and expanded tour itineraries);

- Encouraging a higher level of expenditure (e,g by raising accommodation standards developing handicrafts, identifying markets that yield the highest net benefits etc,

- Improving the profitability of individual business enterprises and - Increasing the proportion of the revenue from tourism that remains in

Zanzibar (e.g by encouraging greater linkages and reducing leakages through implementation of import replacement strategies).

Local people can capture more of the revenue from an expanding tourism sector by establishing their own accommodation, restaurants, and tour and transport operations. For this happen , they will need help in the following areas; - Training (e.g business planning and operation protection of financial

interests, accommodation standards, host training etc). - Development and marketing of handicrafts; - Marketing assistance (e.g identification and targeting of markets, website

development, etc) and - Access to finance (e.g provision of grants or low interest loans for smaller

projects via community development associations and other NGOs.

APPENDIX B MARKETING STRATEGY ACTION PLAN

1. TARGET MARKETS8

Geographic Markets Europeans accounted for 7o% of total arrivals in 2001, with the remainder divided between North America (8.3 %), Africa (9.8%) and Rest of World (11.9%). Within Europe, the main source markets are Italy and Britain, which together accounted for 36% of total arrivals in 2001. Italy According to the 2001 International Visitor Exit Survey, Italians accounted for 48% of the persons surveyed the peak season, which, if representative of the visitor population as a whole, would imply an over-dependence on this one market during this season. Having increased by 90% from 1995 to 2000, the number of Italian vision to Zanzibar fell from 25,764 arrivals in 2000 to 14510 arrivals in 2000. United Kingdom Similarly, the number of British visitors fell from 16,307 arrivals in 2000 to 13,147 arrivals in 2001. These declines are attributed mainly to the adverse publicity received by Zanzibar following the political disturbances in January, and there is evidence of a strong recovery in most markets in 2002. Germany Despite its position as Europe’s most significant source market and Tanzania’s third most significant European source market in 1999, Zanzibar (unlike Mombasa and other parts of Kenya) receives comparatively few German visitors. There is an opportunities to alter this situation with the inauguration of the new weekly condor service from Frankfurt to KIA as of November 2002. Zanzibar needs to increase its presence in German tour operator programmes, so as to encourage as of 2003 a stop after KIA in Zanzibar, instead of Mombasa. Spain

Likewise, through the introduction of the Iberojet weekly charter (198 passenger capacity) from Palma de Majorca and Madrid to Zanzibar since July 15,2002, the number of Spanish tourist arrivals to Zanzibar has the potential to increase considerably. Scandinavia Scandinavia already represents a large market for Tanzania with 330,000 arrivals in 2001. Within Scandinavia, Sweden is the main outbound market. Zanzibar can attract more visitors from this market. According to the recent tour operator survey, 79% of Swedes book 2 – week. Further details on the main source markets are given in the European and United States Market Demand Study for Tanzania (CHL Consulting Group, August 2002) Beach and safari combinations to East Africa with Zanzibar and especially Mombasa included as the beach component. Switzerland Switzerland is also an important outbound market for East and Central Africa, although, with only 6,092 arrivals in 2001, Tanzania’s share is still comparatively small. However, with the Swiss airline now serving Tanzania with 4 flights per week there is an opportunity for Zanzibar to further develop this market. Some 60% of Swiss travelers to East Africa take 2- week safari and beach combination holidays, and 25 % a 2- week beach holiday (mostly in Kenya. France The French market to Tanzania is also relatively underdeveloped (in part due to the lack of direct air links). Some 26% of French visitors to East Africa a take beach and safari combination and some 45% one –week beach holiday as a single destination. While at present, Kenyan beach resorts are mostly used, there is scope for Zanzibar to make further inroads into this market,. United States Tanzania is the most popular destination in East and Central Africa in the U.S market, with Kenya second and Botswana third. Tanzania’s popularity is attributed to its reputation of high quality safaris and abundance of wildlife. In 2001, Zanzibar attracted about one- fifth (6.328 arrivals) of all U.S visitors to Tanzania, Future growth is likely to be constrained by a general slowdown in U.S overseas travel in the present geo- political climate.

Japan There were only 570 Japanese visitors to Zanzibar in 2001, compared with 7,822 to Mainland Tanzania. Australasia In 2001, Zanzibar attracted a total of 4,470 visitors from Australia and New Zealand, making this the fifth largest market (after Italy, Britain, USA/Canada and Scandinavia) in that year. While many of the Australian visitors are what might be termed ‘ backpackers’ they tend to stay longer than the average visitor and provide valuable business for locally owned tourism enterprises. Regional Markets The main regional markets for Zanzibar are South Africa (3,121 arrivals in 2001) and Kenya (2,025 arrivals, mostly business visitors). While mainland Tanzania has limited market potential for vocation travel from South Africa, Zanzibar (while competing with Mauritius and the Maldives) has generated an increase in South Africa visitors for beach, diving and fishing vacations. The East Africa expatriate market, concentrated in Nairobi and Mombasa also offers good growth potential. Domestic Market The Tanzania domestic market is growing and, though presently limited in size for Zanzibar, it has some potential for development n the short term, including Tanzania residents with high disposable incomes; expatriate residents living in Dar es salaam and other cities; VFRs of expatriate residents; conference and meetings; and group travel by schools, clubs etc.,

APPENDIX C CONSULTEES IN PREPARATION OF REPORT Hon Mohammed Aboud Mohammed Minister for Tourism Mr. Pereira Ame Silima Principal Secretary , Ministry of Trade

Industry Marketing and Tourism Mr. Abdul Kh. Abdullah Principal Secretary Ministry of

Communications and Transport Mr. Hamad H. Omar Director of Achieves, Museums and

Antiquities Mr. Vuai M. Mohammed Executive Secretary, Commission for

Tourism (ZCT0 Mr. Issa Mlingoti Director of Tourism Planning and

Development (ZCT) Dr. Ahmada Hamad Khatib Director of Marketing and Promotion

(ZCT) Mr. Zubeir Ali Juma Officer in Charge ZCT Pemba Mr. Suleiman S. A Administrative Officer ZCT Pemba Mr. S.O. Fakih Chief Lands Officer, Department of Lands

and Registry Mbarak Salim Mbarak District Commission, Chake chake, Pemba Mr. Nawawi K. Vuai Acting Principal, Hotel and Tourism

Training Centre Mrs. Sabah Saleh Ali General Manager, Zanzibar Tourist

Corporation Mr. Amour A. Khamis Deputy Director General ZIPA Mr. Muhamed Hafidh Khalfan Senior Investment Office, ZIPA Mrs Khadija Ali Public Relations Officer, ZIPA Mr. Saleh A. Pemba Director of Tourism , Ministry of Natural

resources and Tourism Ms. Maria Mmari Assistant Director, Tourism Development

Ministry of Natural resources and Tourism Mr Aloyce Nzuke Assistant Director, Research Statistics and

Training, Ministry of Natural Resources and Tourism

Mr Hamza Rijal Ecologist, Head of Natural Resources Mr. J. B Alam Environmental Technologist, Head of

pollution Control Mr. Mohammed Haji Ali Head, Integrated Planning Unit,

Department of Surveys, Urban and Rural Planning

Mr. Juma O. Hija Planning Engineer S.F.P.C Mr. Salim R. Abdulla Head, Department of Surveys and Urban

Planning. Mrs. Fatma M. Omar Head, Department of Environment Mr. Tamii M. Omar Head of Lands Department, Pemba Mr. Mwalim Khamis Mwalim Pollution Control Officer, Department of

the Environment, Pemba Mr. Jaffar Ali Natural Resource section, Department of

the Environment, Pemba Mr Tawakal Khamis Administration Officer, ZIPA – Pemba Mr Asha Ali Khatib Coastal Ecologist Mr Amour B. Omar CARE Assistant Zanzibar Area

Coordinator, Misali Island Conservation Project

Mr Ali Said Hamad Manager, Misali Project Mr Slim Khamis Haji Planning Officer DCCFF Pemba Mr Fatma Mbarouk Saleh Wildlife Officer, DCCFF Pemba Mr Suleiman Khamis Suleiman Crop Marketing Officer DCCFF Pemba Mr Ali A. Mbarouk Executive Director Misali Island

Conservation Area Mr Salim A. Khamis Wildlife/Eco tourism Officer Misali Island

Project Mr Saidi Juma Aali Conservation Officer, Head of Department Mr. Haji Mrisho Land Officer, COLE Mr Mwalim A. Mwalim Director General , Stone Town

Conservation and Development Authority Mr Haroub D. Mwija Chairman, Zanzibar Association of Tour

Operators (ZATO) Mr Kheri Kombo Chairman, Zanzibar Tourist Guides

Association (ZTGA) Mr Kubinga M. Simba Vice- Chairman, ZTGA Mr Mabruki J. Makame Director, Zanzibar Municipal Council Mr Amour H. Bakari Head, Economic Statistics Section .

Ministry of Finance and Economic Affairs Mr Mustafa Aboud Jumbe Director General. Zanzibar Ports

Corporation Mr Yussuf Balozi Planning Officer, Zanzibar Ports

Corporation Mr Talib M. Chum Manager, Zanzibar International Airport Mr Marco Van De Kreeke Airport Manager KIA Mr Thomas Haule Airport Manager, Arusha Airport Mr Damian Bell Managing Director, Sokwe Ltd. Chairman – TATO Mr Victor Shao Managing Director/Operations Manager

Safari Makers Ltd.

Mr Barbara Cole Marketing Manager, Safari Makers Ltd Mr Sanday Pandit Operations Director, Roy Safaris Ltd Mr Mustafa Panju Managing Director, Bush Buck Safaris Ltd Mr Marlies Alpers Marketing Manager, A & K Sanctuary

Lodges Mr Mary Lwogo Branch Controller TTB Mr Pratik Pateg Managing Director, Tz Photo Tours &

Safaris Mr Shaban Zavery General Manager, Tz. Photo Tours &

Safaris. Mr Leopold Kabendera Marketing Manager, Tahi Mr Firoz Suleiman Director, Sunny safaris Mr Salim Fanmohammed General Manager, Serena Hotels Mr A. Wissangi General Manager Sopa Lodge Mr Andrew Kundo Manager, Leopard Tours Mr Mike Bridon Managing Director, Masai Camp –

Tropical Mr. Andrew Trails Mr Robert George Mwanukuzi General Manager, Bwawani Plaza Hotel Mr Caroline Scholfied General Manager, Breezes Beach Club Mr Nadia Raguz Guest Relations, Breezes, Beach Club Mr Adriano Raguz Fusillo Dive Operator, B Mr. Moyawaywo Financial Controller, Breezes Beach Club Mr. Laurence Parkman General Manager, Sultan Palace Hotel Mr. Nassor Ahmed Mazrui Owner/Managing Director, Mazson’s

Hotel Mr. Hassan Muhammed Said Executive Director, Mercury’s Restaurant Mr. Salim M. Suleiman Director, Zenith Tours Mr. Jean Devoz General Manager, Karafuu Hotel Mr. Juma Zakaria Guest Relatiions, Karafuu Hotel Mr. Haroub D. Mwita Managing Director, Zanza Tours Chairman Zanzibar Association of Tour Operators (ZATO) Mr. Antonella Balestra Resident Manager, Turisanda Mr. Tim Hendriks Managing Director, Ras Nungwi B. Hotel Mr. John Pingku Manager, Nungwi Beach Village Mr. Ranjit Sondhi Managing Director, Mant Reef L. Pemba Mr. Abdulaziz O. Yussuf Manager, Tembo House Hotel Mr. Mark Coppin General Manager, Protea Hotel, Zanzibar

Beach Resort Mr. Amir H. Esmail Manager Director, Zanzibar Beach Resort Mr. Bharti R. Ved Marketing Manager, Zanzibar Beach

Resort

Mr. Andrew S. G. Smith Director, Bluebay Beach Resort Mr. Mugo Maringa General Manager, Zanzibar Serena Inn Mr. Alex Maboko Assistant Manager, Zanzibar Serena Inn Mr. Marcello Spadoni Manager, Venta Club Mrs. Christine Henry Marketing Manager, Zantours Mr. Mtiyaz Ibrahim General Manager, Dhow Palace Mr. Cate Jackson Funda Logoon Pemba Mr. Rodney D’Mello Director Tours, Kearsley Travel & Tous Ms. Jan Palmer Regional Manager for Tanzania, KLM Eastern Africa Mr. David Barker Marketing Manager, The Safari Scene Mr. Mubsir Ally Sales Services Manager, Swiss Airlines Mr. Mustafa Haji Managing Director, Lions of Tanzania Safaris & Tours Mr. Kimonge Oriyo Vice Chairman TCT Chairman HKAT Mr. Martin Fine Regional Manager, Protea Hotels Tanzania

& Zanzibar Mr. Liesl Hyland Sales and Marketing Manager, New Africa Mr. Mohammed A. Nathani Chairman, Tourism Confederation of

Tanzania Mr. Peter J. Mwenguo Managing Director, Tanzania Tourist

Board Ms. Jane Lyimo Tanzania Civil Aviation Authority Ms. Richard Rugimbana Executive Secretary, Tourism

Confederation of Tanzania Ms. Nassor Mwinyi Managing Director, Maha Travel & Tours Ms. Sleman Ali Operation Director, Maha Travel & Tours Mr. Keven Stander General Manager, Sea Cliff Hotel Dar es

Salaam Mr. Theo Van De Van Director, Matemwe Bungalows Mr. Alastair Norton-Griffiths General Manager, Matemwe Bungalows Mr. Geoff O’Grady Manager, Mnemba Island Lodge Ms. Debbie Moore Manager, Chumbe Island Coral Park

Delegates to Tourism Workshop 21 September 2002 Mr. Joseph Asama Commission for Tourism

Mr. Said H. Haji ZIPA Mr. Suleiman S. Hamad ZATOGA Mr. Juma A. Ali Radio Zanzibar

Mr. Ramadhan Othman Zanzibar Leo Mr. Bhari Ved Zanzibar Beach Resort

Mr. N. Mugheiry ATC Mr. Kubingwa M. Simba Simba Tours Mr. Ilyas R. Nassor Zanzibar Commission For Tourism Mr. Ali Amour Fisherman Tours & Travel Mr. Iddi Amour Labour

Mr. Khamis R. Abdalla Commission for Tourism Mr. Mio Maringo Serena Inn

Mr. Mussa A. Shaaban ZATOGA Mr. Sabah Saleh Zanzibar Commission for Tourism Mr. Bakari S. Asseid DCCFF Mr. Makame J. Pnadu Land & Registrator Mr. Twalib Shaaban Commission for Tourism

Mr. Moh’d Omar Ramadhan UWAZI Mr. Nawawi Kiza Vuai Chuo Cha Hoteli na Utalii

Mr. Suleiman Khamis Dhow Palace Hotel Dr. Nariman Ddani Ims I. Of Marine Science Mr. Mberik Rashid Idara ya Mazingira Mr. Issa Mlingoti Zanzibar Commission For Tourism Mr. Othman Maulid Zanzibar Leo Mr. Mabrouk J. M. Manispaa Mr. Ayoub K. Abdullah Commission for Tourism – Pemba

Mr. Haroub D. Mwita ZATO Mr. Ali Moh’d Mzee Commission for Tourism Mr. Said J. Ali Foresty – Pemba Mr. Mwakabu Mwadini TVZ Mr. Dennis Bilal TVZ Mr. Jane Felix TVZ Mr. Ali Daud Ali Immigration

Mr. Abdalla Ramsa Mr.Mark Coppin Protea ZBR ( Matemwe) Mr. Ramadhan Makame Zanzibar Leo Mr. Mustafa Abdulhamid STZ Mr. Fundi Karama Tourism

Mr. Kheri Juma ZATOGA Mr. Vuai M. Mohammed Commission For Tourism Mr. Abdallah Khamis Ali Archives Mr. Hokokey Island Tours

Mr. Marc Lauson Blue Bay Beach Dr. Ahmada Khatib Zanzibar Commission for Tourism

Mr. Mwalim A. Mwadini STCDA Mr. Abass Khatib K.B.V. Mr. Maulid H. Maulid Radio One

Mr. Khatib Suleiman Uhuru/Mzalendo Mr. Mozza Saleh Mwananchi

Mr. Zubeir A. Juma WBVMU Mh. Issa Moh’d ZCT

Mr. Fatma Omar ZCT Mr. Ali Haneni ZCT

Mr. Amour Hamil OCGS Mr. Abulla Ali ZCT Mr. Antonela Monarch Tours

Mr. Ali Amani Shooting Star Mr. Khamis Mwita Commission for Tourism

Mr. Mohammed Haji Dept. of Service Mr. Maulid Said Daily News

Mr. Maabad J. Muhiddin Commission for Tourism Mr. Nassir Khamis Madera Tours Mr. Maulid Fadhil Commission for Tourism

Mr. Issa H. Kipungu Commission for Tourism Mr. Hassan Burhan Commission for Tourism

Mr. Kheri Muhajiri Commission for Tourism Mr. Miraji U. Ussi Commission for Tourism