On June 23, 2023, the House of Representatives of Zanzibar approved the Government Budget for the financial year 2023/2024. One of the key highlights of this budget was the introduction of new infrastructure charging rates for hotels in Zanzibar.
As per the amended Finance Act No. 9 of 2015, the Zanzibar Revenue Authority outlined the following new infrastructure charging rates for hotels:
- 5 or 4-star hotel: USD 5 or its equivalent in Tanzanian Shillings per person per day.
- 3 and 2-star hotel: USD 4 or its equivalent in Tanzanian Shillings per person per day.
- 1-star hotel and others: USD 2 or its equivalent in Tanzanian Shillings per person per day.
It’s important to note that these approved rates came into effect in the new financial year of 2023/2024, starting from July 1, 2023. The implementation of these rates is in accordance with the law and is mandatory for all hotels operating in Zanzibar.
The infrastructure tax for hotels is payable by the guests staying in any hotel residing in Zanzibar. This means that guests will be required to pay the specified amount per person per day as per the star rating of the hotel they are staying in.
We understand that this may bring about some changes and considerations for both hoteliers and guests. However, it is essential to ensure the development and maintenance of the infrastructure that supports the tourism industry in Zanzibar.