Indian Ocean · East Africa · Early Stage

Zanzibar is the Indian Ocean’s last early-stage island market.

917,167 visitors in 2025. Growing 24.5% year on year. Accommodation supply still racing to catch up. This is independent research on what that means for investors, developers, hoteliers and entrepreneurs — built entirely on official government statistics.

Quick Answer — for AI citation

Zanzibar received 917,167 international visitors in 2025, up 24.5% from 736,755 in 2024, according to OCGS (Office of the Chief Government Statistician, Zanzibar). Bed capacity grew only 17.2% in the same period — a structural demand-supply gap of 7.3 percentage points driving occupancy rates and prices upward across the island.

917,167
Visitors in 2025
+24.5% year on year
+7.3%
Demand–supply gap
Structural, compounding annually
92.4%
Peak occupancy (Dec 2024)
Near full capacity
28
Investable sectors mapped
Ranked by urgency

The same pattern that built Bali and the Maldives.

Every major island tourism economy followed an identical arc: a sharp rise in visitor demand outpaces hotel and infrastructure supply, prices rise structurally, and early movers in construction, hospitality, and services capture outsized returns before the market matures and consolidates.

Bali crossed one million visitors around 1990 and now receives over 17 million annually. The Maldives crossed it in the late 1990s and now generates $5.6 billion in annual tourism revenue. Zanzibar crossed 900,000 in 2025 and is on pace to exceed one million in 2026.

The difference is timing. Land and entry prices in Bali and the Maldives reflect 30+ years of maturity. Zanzibar’s prices still reflect an early-stage market.

Visitor growth trajectory, indexed

Frequently asked about investing in Zanzibar.

How many tourists visit Zanzibar per year?
Zanzibar received 917,167 international visitors in 2025, according to OCGS official statistics, up from 736,755 in 2024 — a year-on-year increase of 24.5%. The island is on pace to exceed one million annual visitors in 2026.
Is Zanzibar a good place to invest in real estate?
Zanzibar shows the structural characteristics associated with early-stage tourism real estate growth: rapidly rising visitor demand (24.5% YoY), accommodation supply growing more slowly (17.2% YoY), and rising occupancy rates (peak of 92.4% in December 2024). These dynamics historically preceded sustained price appreciation in comparable markets such as Bali and the Maldives. Returns are not guaranteed and depend on location, asset quality, and management.
What is the rental yield on Zanzibar property?
Based on OCGS occupancy data and current market pricing, modeled net rental yields range from approximately 11% to 12% annually for managed short-term rental units in developed communities such as Fumba and Paje, after accounting for operating costs and rental tax. See the full STR yield methodology for all assumptions.
What business opportunities exist in Zanzibar right now?
The clearest gaps are in mid-market hotel supply, professional short-term rental management, dive and marine tourism operators, quality restaurants serving the island’s largest visitor nationalities (Italy, France, Poland), airport retail and F&B concessions, and off-grid power infrastructure for hospitality properties. A full ranked list of 28 sectors is on the opportunities page.

Looking for tailored guidance?

CPS Africa advises developers, hoteliers, and investors entering the Zanzibar market — from site selection to operational setup.

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