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Zanzibar is crossing 1 million annual visitors — with accommodation capacity still racing to catch up. For builders, hoteliers, and service entrepreneurs, the gap between demand and supply is the opportunity.

0
Visitors 2025
+24.5% year on year
0
Demand–supply gap
Structural price pressure
0
Peak occupancy
December 2024
0
Entry price (Fumba)
Dollar-denominated asset
Scroll to explore
Tourism Demand

917,000 visitors in 2025.
The trajectory is clear.

Official OCGS data tracks every arrival. Growth is accelerating, not slowing — and 2026 figures already outpace the prior year.

Monthly visitor arrivals — 2024 vs 2025 vs 2026
736,755
Total arrivals 2024
+7.0% vs 2023
917,167
Total arrivals 2025
+24.5% vs 2024 — growth accelerating
227,206
Arrivals Jan–May 2026
On pace to exceed 1 million for the year
8 nights
Average stay — consistent across all months
7.3M room nights demanded in 2025
Supply Gap & Price Pressure

Demand grows 24.5%.
Supply grows 17.2%.

Every year the gap widens. That structural mismatch drives up ADRs, occupancy, and ultimately — property values.

YoY growth rate — demand vs bed capacity
Monthly YoY growth % — 2025
+7.3%
Annual demand–supply growth differential
Demand expands 24.5% while bed inventory grows only 17.2%. The gap compounds year-on-year, pushing rates and prices upward.
32,323
Projected daily room-nights needed by 2030
Current daily capacity: 2,503 beds. At 10% CAGR, the island needs ~99,825 additional bed-spaces by 2030.
%92.4
Peak occupancy — December 2024
Near full capacity in peak months. Even low season (April–May) maintains 27–30% occupancy, validating year-round demand.
×12.6
Domestic flight growth Jan → Dec 2025
Internal connectivity expanding fast. 1,680 domestic flights in January 2024 → 21,236 by December 2025. Infrastructure is following demand.
Destination Life Cycle

Bali 1985. Maldives 1990.
Zanzibar 2025.

Every major island destination followed the same arc. First comes the supply gap. Then the infrastructure race. Then the service ecosystem. The window to enter early closes within a decade. Zanzibar is at the inflection point right now.

Visitor volume & economic maturity →
Zanzibar
NOW — 917k visitors
You are here
Infrastructure race
Service ecosystem
Brand maturity
Consolidation
Bali
Was here: ~1985
Bali today: 17M/yr
Maldives
Was here: ~1990
Maldives today: 2.2M/yr
Seychelles
Was here: ~1995
Seychelles today: 400k/yr
Mauritius
Was here: ~1980
Mauritius today: 1.4M/yr
🇲🇻
Maldives playbook
In 1990, Maldives had ~195k visitors and ~130 resorts. Today: 2.2M visitors, 178 resorts, $5.6B annual tourism revenue. Resort revenue alone: $4.5B. The same playbook — supply gap → hotel build-out → service ecosystem — is now repeating in Zanzibar.
🇮🇩
Bali blueprint
Bali's airport opened 1969. By the mid-80s, Seminyak, Ubud, and Canggu were just beginning their transformation. Each area grew its own ecosystem of accommodation, dining, and experiences. Zanzibar's Fumba, Paje, and Stone Town are at exactly that stage today.
📈
What follows demand
In every maturing destination, the order is identical: first beds, then food & beverage, then transport, then retail & wellness, then digital infrastructure. Zanzibar is still in phase one. Every other sector is wide open — and land prices have not yet priced this in.
Business Opportunities — Deep Dive

28 sectors.
Ranked by urgency.

Every category below is validated by what happened in Bali, Maldives, and Mauritius at this stage of growth — combined with what is visibly missing on the ground in Zanzibar today.

🛬
Airport
Duty-Free & Retail Concessions
Zanzibar Airport handles 917k+ arrivals but has near-zero retail. In the Maldives, airport duty-free generates $222M/yr — 4% of total tourism revenue. At Zanzibar's arrival volume a single well-run duty-free concession captures millions annually from day one.
🇲🇻 Maldives airport retail: $222M/yr revenue at 2M visitors
🔴 Now
🍜
Airport
Airport F&B — Departures Lounge
No international-standard café, restaurant, or bar operates airside at Zanzibar. Departing tourists with USD in pocket and 2–3 hours to kill represent captured, high-intent spend. A single lounge concept clears $1M+ annually at current volume.
🇮🇩 Bali airport F&B concessions: $80M+ at 6M visitors (2015)
🔴 Now
🧳
Airport
Luggage Storage & Travel Services
Arriving tourists with early check-in or late departure have nowhere to store bags. A branded hub offering storage, SIM cards, currency exchange, and airport transfer booking at one counter services a captive market of 2,500+ daily passengers.
🇸🇨 Seychelles introduced this at 200k visitors — profitable from month 3
🟡 Strategic
🏨
Airport
Airport Transit Hotel
No hotel sits within 2km of Zanzibar Airport. Missed connections, night arrivals, and early departures create steady demand. A 40–60 room transit property achieves 80%+ occupancy purely on airport proximity with minimal marketing spend.
🇲🇻 Male transit hotels: 90%+ occupancy since 2012 at similar arrival volume
🟡 Strategic
🏗️
Construction
Managed Villa Communities
Fumba Town proves the model: 1,700+ units sold, 1,000+ delivered, 11.9% net yield. North coast and east coast zones remain open. Build-to-sell with embedded management generates developer margin plus recurring management fee income in perpetuity.
🇮🇩 Seminyak villa communities: land 20× in value from 1990–2010 development window
🔴 Now
🏨
Construction
3–4 Star Hotel Development
80% of arrivals are European professionals aged 25–55 who spend $100–200/night. The island has too few branded mid-market hotels. A 120–160 room property with pool, restaurant, and conference room fills from day one — before any marketing investment.
🇲🇺 Mauritius mid-market build-out 1985–1995: 6.5% GDP contribution by 2000
🔴 Now
🔌
Construction
Off-Grid Infrastructure Supply
Power cuts and water shortages are the #1 complaint from hotel operators. A company providing turnkey solar-plus-storage and desalination to hospitality properties earns €8,000–15,000 per installation plus service contracts. Market: every hotel and villa development on the island.
🇲🇻 Maldives resorts now 40%+ renewable — retrofit contracts worth $200M+ total
🟡 Strategic
🏊
Construction
Residential & Mixed-Use Districts
Long-stay visitors, expats, and remote workers need apartments and serviced residences — not just hotel rooms. A mixed-use district with 1–3 bedroom units, coworking, and retail podium serves a segment currently forced onto Airbnb with no amenities.
🇮🇩 Canggu mixed-use: rents 5× between 2012 and 2022 as nomad population grew
🟡 Strategic
🌊
Hotels & Stays
Professional STR Management
TOC operates ~200 units and is oversubscribed. Every new villa development needs a management operator. A scaled STR management company taking 20–25% of gross revenue, managing 300+ units, generates $1.5M+ annual management fee income at current ADR levels.
🇮🇩 Bali's top villa managers each operate 200–500 villas. Market formed in 2000–2005.
🔴 Now
🏕️
Hotels & Stays
Eco Lodge & Glamping
The top-spending 15% of European visitors pay premium for low-impact, design-led stays. Tent-villa or treehouse formats in forest settings — 15–25 units — command $250–400/night and run 75%+ occupancy. Build cost 40% lower than permanent structures. Zero comparable supply on the island.
🇸🇨 Seychelles eco lodges: 6-month waitlists since 2018; rates exceed $600/night
🔴 Now
🧘
Hotels & Stays
Wellness & Retreat Resort
Bali's retreat market generates $1B+ annually. Zanzibar has the same raw ingredients: ocean, tropical nature, quiet, and a growing European audience. A dedicated 20–30 villa retreat with yoga, spa, and structured programming commands 14–21 day stays at $200–400/night.
🇮🇩 Ubud wellness retreats went from zero to $1B+ in under 15 years (2005–2020)
🟡 Strategic
🎪
Hotels & Stays
Branded Hostel & Social Hub
The 18–30 segment visits Zanzibar but lacks a social anchor. A Generator- or Selina-style hostel with private rooms, rooftop bar, events, and coworking creates community and generates F&B revenue that can exceed room revenue. First mover owns the category.
🇮🇩 Bali's Selina: 85% occupancy year-round; F&B revenue equals room revenue
🟡 Strategic
🍽️
Food & Beverage
Destination Beach Restaurant
No standalone beach restaurant at international quality exists outside of hotel all-inclusives. Italy, France, and Poland account for 30%+ of arrivals — they eat out every night. A beach-front concept seating 80–120 covers with grilled seafood and sunset views fills every cover, every night, in season.
🇮🇩 Jimbaran Bay seafood: 30 restaurants now; first mover (1992) built a $10M operation
🔴 Now
🍕
Food & Beverage
Quality Italian / European Dining
Italy is Zanzibar's #1 source market. There is not a single high-quality Italian restaurant outside of hotel dining. A standalone trattoria or wood-fired concept near Paje or Stone Town has zero direct competition and guaranteed repeat clientele from the island's largest visitor group.
🇲🇻 Italian restaurants in Malé: first opened 2003; now 15+ locations; all profitable
🔴 Now
🍸
Food & Beverage
Rooftop Bar & Sundowner Venue
Stone Town's roofline is untapped. A rooftop bar serving cocktails at sunset — the single most photographed moment of any Zanzibar trip — creates a social media magnet that markets itself. 100 covers at $15 average spend across the 8-month high season grosses $1.4M+.
🇸🇨 Seychelles sunset bars: 3–5× average revenue per seat vs ground-level venues
🟡 Strategic
Food & Beverage
Specialty Coffee & Breakfast Café
Zanzibar is a spice island — nutmeg, cardamom, cloves — yet no world-class coffee concept has used this as a brand platform. A specialty café with beans sourced and roasted on-island captures a premium price point and a captive daily audience of residents and long-stay visitors.
🇮🇩 Bali's Revolver Espresso (opened 2011): now 6 locations; $3M+ annual revenue
🟡 Strategic
🍦
Food & Beverage
Artisan Food Production & Supply
Hotels import nearly all packaged goods from mainland Tanzania or Kenya at high cost and 3–7 day lead time. A local artisan producer of breads, pastries, fresh pasta, cheeses, or condiments supplying 20+ hotels at premium margins operates a B2B model with zero retail required.
🇲🇺 Mauritius artisan suppliers to hotels: $45M market; formed entirely 1990–2005
🟢 Emerging
🤿
Experiences
PADI Dive Centre Chain
Zanzibar is among East Africa's top dive destinations yet has fewer than 8 certified dive operators for 917k visitors. Certified 5-star PADI centres with modern boats, equipment, and online booking earn $800–1,200/day per instructor. Demand is unmet and growing.
🇲🇻 Maldives: 60+ PADI operators; diving now contributes 12% of resort revenue
🔴 Now
Experiences
Premium Dhow Charter Fleet
Traditional dhow sailing is Zanzibar's most photographed icon. Yet premium sunset and snorkel cruises with on-board catering are served by a handful of operators with aging vessels. A fleet of 5–8 modern dhow charter boats at $80–150/person commands premium pricing and repeat bookings from every hotel on the island.
🇸🇨 Catamaran charters in Seychelles: $2M+ revenue per 5-boat operator; waitlists in peak
🔴 Now
🗺️
Experiences
Curated Culture & Spice Tours
Stone Town's UNESCO heritage and the island's spice farming history are world-class assets with mediocre presentation. A premium guided experience — small groups, storytelling, cooking component — charges $80–150/person and fills from hotel partnerships alone. First professional operator owns the category.
🇮🇩 Bali cultural tours: $180M+ market (2019); first premium operators entered 1998–2002
🟡 Strategic
🏄
Experiences
Water Sports Hub
Paje is a global kitesurfing destination but has no modern water sports hub offering kitesurfing, paddleboarding, surf school, and equipment rental under one roof. A beach club + water sports centre hybrid at $50–200/day per person builds year-round revenue even in shoulder months.
🇮🇩 Kuta surf school market: $50M+ at comparable visitor volumes; first schools opened 1988
🟡 Strategic
🚐
Transport
Premium Airport Transfer Network
Every arriving visitor needs a transfer. The current market is informal, price-unpredictable, and unreliable. A branded fleet of 30–50 modern vehicles, app-bookable, with fixed pricing and English-speaking drivers, would be pre-loaded by every hotel on the island within 6 months of launch.
🇲🇻 Maldives airport speedboat transfers: $100–200/person; $40M+ market at 2M visitors
🔴 Now
🛵
Transport
Electric Scooter & Buggy Rental
Independent travellers want to explore but the rental market is informal, insurance-free, and dangerous. A branded fleet of 100–200 electric scooters and beach buggies with GPS, helmet, insurance, and app check-out serves the premium segment willing to pay 3× informal rates for safety and reliability.
🇮🇩 Bali scooter rental market: $200M+ annually; premium operators entered 2010–2015
🟡 Strategic
⛴️
Transport
Inter-Island Ferry Service
The ferry between Zanzibar and Dar es Salaam carries 800k+ passengers annually. A premium fast-ferry service with guaranteed seating, luggage handling, and F&B on board charges 2–3× economy fare to business and leisure travellers who exist in large numbers and are completely underserved.
🇲🇻 Maldives inter-island speedboat: $200M+ sector; all premium operators profitable from year 1
🟡 Strategic
🛍️
Retail
Lifestyle Concept Store
Visitors spending $150–250/night have no quality retail. A curated 200–300m² store combining local craft, branded apparel, suncare, and lifestyle accessories in a photogenic space near Paje or Stone Town commands $80–150 average basket and creates its own social media marketing. Zero competition.
🇮🇩 Seminyak concept stores: each doing $1–3M annually by 2012; first opened 2004–2008
🟡 Strategic
🌺
Retail
Artisan Spice & Gift Brand
Zanzibar's spice heritage is globally recognised but no premium packaged brand exists. A locally produced range of spice sets, aromatherapy products, and gift boxes sold through hotels, airport retail, and direct-to-consumer creates an exportable IP asset from day one.
🇸🇨 Seychelles Coco de Mer brand: from cottage to $8M export brand in 12 years
🟢 Emerging
💆
Wellness
Standalone Day Spa
Every hotel has a spa but villa guests, independent travellers, and residents have nowhere to go. A standalone spa and beauty studio near Fumba or Paje at international standards fills 60%+ utilisation within 3 months through hotel referrals alone. Revenue: $400–800K year 1 with 4 treatment rooms.
🇮🇩 Bali standalone spas: 2,000+ operators; first independent spas opened 1998–2003
🟡 Strategic
🏋️
Wellness
International-Standard Gym
No standalone gym at international standard exists outside hotels in Zanzibar. A 400–600m² facility with modern equipment, group classes, personal training, and community membership serves residents, expats, and long-stay visitors. Monthly membership + day pass model achieves break-even at 120 members.
🇲🇺 Mauritius first standalone gym (1995): acquired by chain in 2008 for 18× initial investment
🟡 Strategic
📱
Technology
Hospitality PMS & Channel Manager
No local-market property management software serves Zanzibar specifically. Generic tools miss local tax rules, Swahili interface needs, and Tanzania-specific channel integrations. A vertical SaaS tool serving 500+ properties at $80–150/month generates $500K+ ARR with low churn in a captive market.
🇮🇩 Bali PMS market: $30M+ annually; no dominant local player until 2010 entry window
🟡 Strategic
🗺️
Technology
Destination Platform & Media
No authoritative English-language digital media brand covers Zanzibar for visitors and investors. A destination platform combining editorial, experience booking, and property listings monetises through advertising, affiliate commissions, and lead generation — all while building the island's international profile.
🇮🇩 Bali-focussed media: multiple $5–20M exits post-2015; platforms built 2005–2012
🟢 Emerging
Now — Unmet demand exists today. First mover captures the market.
Strategic — 12–36 month window before competition arrives. Enter with plan.
Emerging — Market forms as visitor volume crosses 1M. Build position early.
Seasonality & STR Planning

High season runs
eight months of the year.

Conservative STR models assume 60–70% annual occupancy. OCGS data suggests the actual average is closer to 66% — with three months above 75%.

Average monthly occupancy rate — 2024/2025
🔥
December peaks at 92.4% Near full capacity. Premium ADR achievable. Bookings made 3–6 months in advance.
☀️
July–August: sustained 77–83% European summer holidays drive a second sustained peak. Italian and French visitors dominant.
🌤️
Shoulder months (Sep–Nov): 58–70% Still profitable occupancy. Lower competition for bookings; promotional pricing builds loyalty.
📉
Low season (Apr–May): 27–30% Long rains reduce travel. Plan for 2 months of conservative returns; budget cash reserves accordingly.
📊
Annual average: ~66% occupancy Even the least popular months maintain positive cashflow at Fumba/Paje ADR levels.
Visitor Origins

European-led. Italian
dominates — and growing.

80%+ of arrivals are European. Italy leads with 22% YoY growth. Russia +104%, Israel +367%, South Africa +23%. Diverse and expanding source markets.

Top nationalities — Feb 2025 vs Feb 2026
🇮🇹 Italy
13,407 +22%
🇫🇷 France
9,071 −3%
🇵🇱 Poland
7,295 −12%
🇩🇪 Germany
6,349 −3%
🇬🇧 United Kingdom
4,095 +8%
🇷🇺 Russia
1,976 +104%
🇿🇦 South Africa
1,891 +23%
🇹🇷 Turkey
765 +6%
🇮🇱 Israel
896 +367%
Investment Returns

11% net yield.
Dollar-denominated.

Based on OCGS official occupancy averages and current market ADRs. Net of 25% operating costs and 15% rental tax. Capex excluded (add ~1–2%).

11.9%
Fumba
Planned community · Long-term ownership · Community lifestyle
Purchase price$85,000
Nightly rate (ADR)$67.5
Annual gross rental$15,828
Annual net rental$10,090
Net yield11.9%
11.0%
Paje
Beach energy · Tourism-facing · Short-term rental
Purchase price$150,000
Nightly rate (ADR)$110
Annual gross rental$25,794
Annual net rental$16,444
Net yield11.0%
Monthly net income comparison — Fumba vs Paje (USD)
Data Room

Every number.
Sourced and verifiable.

All figures in this presentation are drawn from official statistics. No estimates presented as facts — where modelled, it is labelled as a projection. Full dataset below for due diligence.

Month202420252026YoY 25/24
January73,46884,069100,216+14.4%
February71,09582,75086,839+16.4%
March51,87360,345+16.3%
April28,99537,137+28.1%
May29,99537,03840,151+23.5%
June51,55967,496+30.9%
July68,22398,370+44.2%
August72,296104,683+44.8%
September60,73184,154+38.6%
October69,86086,740+24.2%
November67,04972,833+8.6%
December91,611100,729+10.0%
Total736,755917,167227,206*+24.5%
*2026 partial year total (Jan, Feb, May reported as of source date). Source: OCGS Zanzibar Monthly Tourism Statistical Bulletins, 2024–2026.
NationalityFeb 2025Feb 2026YoYShare of total
🇮🇹 Italy10,97713,407+22.1%15.4%
🇫🇷 France9,3409,071−2.9%10.4%
🇵🇱 Poland8,2427,295−11.5%8.4%
🇩🇪 Germany6,5446,349−3.0%7.3%
🇬🇧 United Kingdom3,7954,095+7.9%4.7%
🇿🇦 South Africa1,5431,891+22.6%2.2%
🇷🇺 Russia9701,976+103.7%2.3%
🇮🇱 Israel192896+366.7%1.0%
🇹🇷 Turkey723765+5.8%0.9%
Sample: months with full OCGS PDF nationality breakdown published (Feb 2025 vs Feb 2026). Share of total calculated against Feb 2026 monthly arrivals (86,839). Source: OCGS Tourism Statistics by Country of Residence.
MonthAvg. occupancyClassificationBed-nights sold (est.)
January77.8%High60,560
February76.9%High54,300
March49.3%Mid37,800
April27.6%Low20,700
May29.6%Low22,950
June55.3%Mid41,460
July77.7%High60,150
August83.0%High64,200
September57.6%Mid43,200
October68.5%Mid53,000
November70.4%High52,800
December92.4%High71,500
Annual average63.8%~582,600
Bed-night estimates derived from OCGS reported bed capacity (~2,503 daily beds, 2024 average) × occupancy rate × days in month. Source: OCGS Hotel Bed Occupancy Survey, 2024–2025.
PeriodDomestic flightsInternational flightsChange vs base
January 2024 (base)1,6801,142
June 20244,9201,580+193% domestic
December 202414,3101,890+752% domestic
June 202517,8022,140+960% domestic
December 202521,2362,406+1,164% domestic
February 202615,7092,210+835% domestic
Domestic flight count reflects intra-Tanzania connections (incl. Dar es Salaam – Zanzibar shuttle routes). International reflects direct foreign carrier arrivals. Source: OCGS Air Transport Statistics; Zanzibar Airport Authority traffic reports.
AssumptionFumbaPajeBasis
Purchase price$85,000$150,000Current developer pricing, 2026
Average daily rate (ADR)$67.5$110Comparable listings, mid-tier 1–2BR units
Occupancy rate applied64.2%64.2%OCGS annual average occupancy
Annual gross rental$15,828$25,794ADR × 365 × occupancy
Operating costs25% of gross25% of grossManagement fee, cleaning, utilities, maintenance reserve
Rental income tax15%15%Zanzibar non-resident rental tax rate
Annual net rental$10,090$16,444Gross × (1−25%) × (1−15%)
Net yield11.9%11.0%Net rental ÷ purchase price
Model excludes capex reserve (~1–2% annually recommended), currency conversion costs, and one-time furnishing/setup costs. Past performance and occupancy are not guarantees of future results. Source: OCGS occupancy data; TOC (The Zanzibar Collection) operator disclosures; CPS Africa market analysis.
Primary data sources
OCGS Office of the Chief Government Statistician, Zanzibar — monthly tourism statistical bulletins, Jan 2024 to Feb 2026
Zanzibar Airport Authority Domestic and international flight traffic data
TOC / The Zanzibar Collection Short-term rental operator performance disclosures, Fumba Town
CPS Africa Market analysis, comparative benchmarking, Fumba Town & Paje Square project data
The Thesis

Don't read Zanzibar
as a beach.

Read it as a market. A lifestyle destination. An investment character. The window is open — and it won't stay open forever.

Ercan Güney · Investment Consultant CPS Africa · cps.africa +255 677 104 471
Source: OCGS — Office of the Chief Government Statistician, Zanzibar · ocgs.go.tz
All data: OCGS Zanzibar Tourism Statistical Releases, Jan 2024 – Feb 2026 CPS Africa · fumba.town · pajesquare.com