7 Investment and Business Opportunities in Zanzibar
Zanzibar has moved beyond being just a holiday destination. Over the past few years, it has become a serious place to invest or build a business, especially in tourism, property, and the services that support them.
Visitor numbers are rising, international hotel brands are committing long-term capital, and the island’s economy is becoming more structured and regulated. At the same time, it’s still early compared to more established Indian Ocean markets, which is where the opportunity sits.
This article looks at the best investment and business opportunities in Zanzibar for 2026, through the lens of a real investor. It focuses on what’s actually performing, where demand is building, and which opportunities are worth serious consideration.
Zanzibar investment opportunities at a glance
| Investment / Business Type | Demand | Capital Needed | Hands-on Level | Risk Profile | Who It Suits |
|---|---|---|---|---|---|
| Resort & villa investments | Strong, proven | Medium–High | Low | Medium | Investors seeking income + asset |
| Boutique hotels & lodges | Strong but competitive | High | High | Medium–High | Experienced operators |
| Tours & experiences | Strong, seasonal | Low–Medium | Medium | Medium | Entrepreneurs & operators |
| Food & beverage venues | Location-led | Medium | High | Medium–High | Hospitality founders |
| Tourism support services | Growing steadily | Medium | Medium | Low–Medium | Practical investors |
| Energy & utilities | Structural demand | Medium | Medium | Low–Medium | Long-term operators |
| Blue economy & exports | Policy-backed | Medium–High | High | High | Specialist investors |
1. Resort and villa investments (managed hospitality real estate)
This is one of the most established investment routes in Zanzibar and remains one of the most attractive for investors who want income without running a business day to day.
Tourism in Zanzibar is driven almost entirely by leisure travel. Over 90% of visitors come for holidays, and beach stays are the main activity. That supports demand for high-quality beachfront villas and resort residences.
In July 2025, Zanzibar recorded its highest-ever monthly arrivals, with bed occupancy over 80% in peak season. Average visitor spend sits at around $250 per person per night, which supports premium accommodation when the product and service are right.
Why investors look here
Clear demand from international travellers
Asset-backed investment (you own property, not just cashflow)
Ability to earn rental income and still enjoy personal use
What matters
Location (swimmable beaches, access, privacy)
Professional management
Build quality and long-term maintenance planning
At Sandbank Villas, villas are integrated into a professionally operated beachfront resort, with shared amenities, on-site hospitality teams, and a rental pool model. This kind of setup removes much of the operational burden that individual villa owners often face.
“Most underperforming villas in Zanzibar fail because they are treated like second homes, not hospitality assets.” – Sandbank Villas development team
Realistic risks
Seasonal cashflow swings
Dependence on the operator’s performance
Higher upfront capital compared to service businesses
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2. Boutique hotels, lodges and wellness resorts
Small hotels and lodges continue to attract interest, especially in areas outside the main resort zones. Guests are looking for places with personality, strong design, and a clear point of view.
International brands like Four Seasons and Anantara entering the market help raise awareness, but they also raise standards. That makes this space rewarding, but competitive.
Why it can work
Growing visitor numbers
Longer average stays (around 8 nights)
Appetite for design-led and wellness-focused properties
Challenges
Higher capital requirements
Staffing and training pressures
Licensing, compliance, and waste management rules becoming stricter
This route suits hands-on operators with hospitality experience. For passive investors, risk is higher unless partnered with a strong operator.
3. Tours, excursions and experience-based businesses
Experiences are where Zanzibar visitors often spend their extra money. Private boat trips, sandbank lunches, diving, wellness sessions, and curated cultural tours all perform well when run properly.
With long stays and a beach-first travel pattern, guests are open to multiple add-ons during one trip.
Why this works
Low setup costs compared to property
Fast route to revenue
Strong hotel partnership opportunities
What to watch
Seasonality
Dependence on hotel referrals and online platforms
Safety, insurance, and quality control
The most successful operators focus on fewer, higher-quality experiences, rather than volume.
4. Food, drink and lifestyle venues
Restaurants, beach clubs, and cafés can do very well in the right locations, especially near resorts and popular beaches.
But this is one of the toughest categories to get right.
Upside
Strong peak-season demand
High visitor spend
Repeat local and expat customers
Reality check
Power and water reliability matter
Imported ingredients can squeeze margins
Waste and food safety rules are being enforced more strictly
This route suits founders who enjoy being close to operations and understand hospitality basics.
5. Tourism support and service businesses
As tourism grows, so does demand for the services behind the scenes. These businesses are often overlooked, but they can be some of the most stable.
Examples include:
Commercial laundry and linen services
Maintenance and facilities management
Staff accommodation and transport
Licensed waste collection and recycling
New waste management regulations introduced in 2025 mean hotels and resorts must work with licensed providers, creating steady demand.
Why investors like this space
Less seasonal than tourism-facing businesses
Long-term contracts
Lower marketing costs
These businesses don’t rely on Instagram or reviews. They rely on reliability.
6. Energy, water and utility solutions
Power and water reliability remain challenges in Zanzibar, especially for hotels and larger developments. That creates opportunity for businesses offering solar, battery storage, water treatment, and efficiency upgrades.
Government and development banks are investing in grid upgrades, but private solutions are still in demand.
Where opportunity sits
Solar systems for hotels and resorts
Energy-as-a-service models
Water storage and treatment solutions
This is a long-term play, suited to operators who understand infrastructure and contracts.
7. Blue economy and export-led businesses
Zanzibar’s government has made the blue economy a priority, covering fisheries, aquaculture, seaweed, and value-added exports like spices.
Exports such as cloves and seaweed already generate significant revenue, but processing and branding are still underdeveloped.
Potential upside
Policy support
Export markets
Less reliance on tourism cycles
Higher risk
Operational complexity
Cold chain and logistics
Regulation and compliance
This space suits specialist investors rather than generalists.
How to choose the right opportunity
Before committing capital, most investors should ask:
Who is the end customer?
How predictable is demand?
How hands-on will this be?
What does exit look like?
There is no single “best” investment in Zanzibar. The right option depends on your goals, risk tolerance, and time commitment.
For many international investors, managed resort and villa investments strike a balance between income, asset ownership, and lifestyle flexibility, especially when backed by professional operators.
Explore Sandbank Villas
If you’re considering investing in Zanzibar property but don’t want the day-to-day hassle, Sandbank Villas is designed to be a genuinely hands-off investment.
Owners benefit from:
Beachfront villas in one of the island’s strongest-performing areas
A professionally run rental management programme
Clear foreign ownership structures through ZIPA
Resort-grade amenities designed to support both income and personal use
You can explore ownership options and request a brochure at sandbankvillas.com