Island Living

Writing by Jacques Nell

Zanzibar, Tanzania: Once known as the Spice Island and a crossroads of Indian Ocean trade, Zanzibar is now firmly on the radar of the world’s leading luxury hotel groups. From pristine beaches to historic Stone Town, the archipelago is seeing a surge of five-star developments, positioning it as one of the fastest-growing luxury tourism markets in East Africa.

Over the past five years, international brands have quietly accelerated their entry into Zanzibar. Global hotel groups are targeting its long white sand beaches, reliable flight access, and growing reputation as a dual destination retreat that combines safari and sea. The strategy is clear: capture the rising demand for high-end leisure travel in a market that remains more affordable to develop than Mauritius or the Seychelles.

A Historic Island Finds a New Role

For centuries, Zanzibar was a vital port for Arab, Indian, and African traders. Today, its layered history is becoming part of its luxury appeal. Stone Town’s UNESCO heritage streets provide cultural depth, while resorts along Nungwi, Kendwa, Paje, and Michamvi offer barefoot elegance on some of the most photogenic shorelines in the Indian Ocean.

“Zanzibar delivers something no other island can: heritage, natural beauty, and direct access to East Africa’s safari circuit,” says one regional hotel analyst. “You can be on the beach in the morning and tracking elephants in the Serengeti by afternoon. That’s a compelling proposition for global brands.”

A Boom in Development

Several luxury hotel operators have announced or completed projects in Zanzibar, with more in the pipeline. Boutique resorts are being joined by large scale branded developments that integrate residences with hotel services a model that has performed strongly in comparable island markets.

Developers are leaning on off plan sales to finance construction, offering investors early entry pricing, flexible payment schedules, and access to rental pools once hotels open. For buyers, the numbers are attractive: rental yields in key beach zones are rising, daily rates are trending upward, and property values have appreciated consistently as tourism arrivals grow.

Investment Climate

Government policies encouraging foreign investment, coupled with improvements in infrastructure, are adding momentum. With airlift increasing from Europe, the Middle East, and East Africa, Zanzibar is attracting a wider audience of leisure travelers and with them, international hospitality brands eager to secure prime plots before the market matures.

“Zanzibar feels like Mauritius twenty years ago,” says one investor active in the region. “It’s still early, but the fundamentals are all here: demand, access, and a government willing to back tourism as a growth driver.”

Looking Ahead

As the island’s luxury pipeline deepens, analysts predict strong returns for early movers. Beachfront sites with swimmable lagoons and natural elevation remain the most coveted, but second row properties with branded hotel partnerships are also commanding premiums.

For developers and investors, the message is clear: Zanzibar is no longer an emerging market on the periphery. It is rapidly becoming the Indian Ocean’s newest luxury destination, a place where history, hospitality, and high returns are converging.