Question

How has Zanzibar's tourism industry changed since changing from a state-run government controlled industry to a free-market tourism?

Please write at least 2-4 paragraphs.

Answer 1

The liberalizations in the tourism industry in Zanzibar including opening of the country to private and foreign investment, denationalization of banks and most of the government enterprises; export promotion; easing of rules on profits repatriation, and abolition of taxes and duties on the imports have a significant impact in Zanzibar's tourism industry.

In facilitating the shift from state-run government controlled industry to the free-market tourism the government of Zanzibar introduced several new laws and regulations and created new institutions that targeted on the economy's diversification wherein the private sector plays a major role. Zanzibar's recovery program in 1989 was designed for the development of economy wherein tourism was a vital component; and in 1989 Invest Protection act was designed for the foreign capital attraction. Zanzibar Tourism commission was established in 1996 for promotion of Zanzibar as a tourist spot; and regulating and monitoring the tourism industry.

Moreover in 1996 the government passed Promotion of Tourism Act with an intent of promoting the Zanzibar's tourism industry. With the new policies and regulations and formation of new government offices there is a great boost of tourism investment and revenue in Zanzibar