Zanzibar News Blast Zanzibar, a popular tourist destination known for its pristine beaches and rich cultural heritage, has recently implemented a new infrastructure tax aimed at generating revenue for development projects. The tax, which affects hotel accommodation, has sparked debates within the tourism and hospitality industry. Zanzibar New Infrastructure Tax Fees The Zanzibar government, through its Minister for Finance and Planning, Ms Saada Mkuya Salum, introduced the new infrastructure tax as part of the 2023-24 budgetary proposals. The primary aim of this tax is to generate revenue to fund infrastructure development projects in the region. The government asserts that the existing rates for hotel accommodation do not adequately account for inflation and fluctuations in exchange rates. The tax rates vary depending on the hotel's star rating. - Visitors staying in Five-Star and Five-Star hotels are required to pay $5 - Those staying in three and two-star hotels must pay $4 - Guests at single-star or unclassified hotels, including AIrBnBs, will be charged $2 (equivalent to approximately Sh4,600) While the government argues that the tax is necessary to reflect inflation and exchange rates, hoteliers are concerned about its potential impact on the industry's competitiveness and visitor numbers. Implementation of the Tax and Outcry from Hoteliers The implementation of the new infrastructure tax has raised concerns within the tourism and hospitality industry. Hoteliers and umbrella bodies in Zanzibar have expressed apprehension about the potential ramifications of these charges on their businesses and the overall competitiveness of Zanzibar as a tourist destination. One of the major concerns is the timing of the implementation. The industry is still recovering from the devastating impact of the COVID-19 pandemic, which severely affected tourism worldwide. While a 500% increase in tax may not necessarily be seen as negative, the sudden imposition of these charges could disrupt operations
Zanzibar News Blast Zanzibar, a popular tourist destination known for its pristine beaches and rich cultural heritage, has recently implemented a new infrastructure tax aimed at generating revenue for development projects. The tax, which affects hotel accommodation, has sparked debates within the tourism and hospitality industry. Zanzibar New Infrastructure Tax Fees The Zanzibar government, through its Minister for Finance and Planning, Ms Saada Mkuya Salum, introduced the new infrastructure tax as part of the 2023-24 budgetary proposals. The primary aim of this tax is to generate revenue to fund infrastructure development projects in the region. The government asserts that the
