Zanzibar Hotel Market Update March 2018
Visitors double over 5-year period, as new airlift paves way for broader tourism growth Government incentives and surging numbers motivating rise in integrated projects “Zanzibar achieved impressive compound annual growth of 19% in total passenger arrivals by air and sea from 2013 to 2017, stimulated by a rise in direct flights. The destination has also benefited from increased global recognition of it’s upscale and luxury hotels.
Airport & Seaport Passenger Arrivals Number of Passengers
%
500,000
90
400,000
70
300,000
50
200,000
30
100,000
10
0
-10
In 2017, the island received 433,474 passenger arrivals, which rose by 15% compared to the previous year. Tourists can access the island via both by the seaport and airport. While the proportion of seaport passenger arrivals slightly declined year-on-year, more visitors arrived via the airport. There is new airlift from Italy and increasing frequency in existing popular routes. In addition, the expansion of Abeid Aman Karume International Airport will see the building of a new terminal that will increase airport capacity to 1.6 million passengers per annum.
Currently, only 6% of accommodation establishments in Zanzibar are in the upscale and luxury tiers. With rising direct air service and stronger destination presence, more branded hotel developments are being attracted to the market.” Bill Barnett, Managing Director, C9 Hotelworks
Trends
Forward Outlook
2013
2014
Passenger Arrivals
2015
2016
2017
Annual Growth Rate
Source: Zanzibar Commission for Tourism and C9 Hotelworks Market Research
•
Market share of international visitor arrivals from Israel rose from 3% in 2015 to 6% in 2017, and became one of the top five source markets.
•
Tourism will benefit from the entrance of a new set of integrated projects, as well as the upgrade of transportation infrastructure.
•
Average length of stay in four- and five-star hotels is between 4 and 5 nights, with a large proportion of guests on full-board packages.
•
Currently, there are four large-scale projects under development. Two of these are located in Fumba, focusing on residential properties.
•
A flight route from Italy launched since December 2017 on weekly basis. Several airlines have increased flight frequency to the island including FlyDubai and Ethiopian.
•
The new terminal at Abeid Aman Karume International Airport will add an additional 7,800 square meters to the airport complex, and is expected to be completed in 2019.
TOURISM Demand Indicators Zanzibar recorded a total number of 433,474 passenger arrivals by air and sea in 2017. The airport is the primary getaway whereas arrivals via the seaport accounted for 17% of incoming numbers.
Abeid Amani Karume International Airport Passenger Arrivals Number of Passengers 35,000
21,000
30,000
17,500
25,000
Domestic passenger arrivals grew by 20% y-o-y, compared to international with an 18% uplift
14,000
20,000
10,500
15,000
7,000
10,000
3,500
5,000 -
Jan
Feb
Mar
Apr
2016 International
May
Jun
Jul
Aug
2017 International
Sept
Oct
Nov
2016 Domestic
Dec
2017 Domestic
Source: Zanzibar Commission for Tourism and C9 Hotelworks Market Research
Seasonality Number of Passengers
Strong tourist numbers during peak months in Aug and Dec 2017 has reinforced seasonality
60,000
50,000 40,000 30,000 20,000 10,000 Jan
Feb
Mar
Apr
May
2017
Jun
Jul
Aug Sept
2016
Oct
Nov
Dec
2015
Source: Zanzibar Commission for Tourism and C9 Hotelworks Market Research
Distribution of Key International Source Markets - 2016 vs. 2017 12%
12%
Italy 10%
2017
58%
8% 6% 6%
Italy 11%
Germany UK Israel USA Others
2016
55%
9% 7% 6%
Germany UK USA South Africa Others
Source: Zanzibar Commission for Tourism and C9 Hotelworks Market Research
2
C9 Hotel Market Trends: March 2018
HOTEL MARKET Hotel Supply There are 455 registered accommodation establishments in Zanzibar totaling 8,494 keys. While most existing properties are in the midscale segment, pipeline projects are concentrated on the upscale and luxury tiers.
Accommodation Establishments Number of Rooms
Total number of establishments grew by 5% from the start of 2013 through to the end of 2017
Number of Establishments
8,800 8,600 8,400 8,200 8,000 7,800 7,600 7,400 7,200
500 400 300 200 100 2013
2014
2015
Rooms
2016
2017
Hotels
Source: Zanzibar Commission for Tourism and C9 Hotelworks Market Research
Accommodation Establishments Supply by District
31% of the supply is in the South District, with the most popular locations being Jambiani and Paje
Numbr of Establishments 160 140 120
100 80 60 40 20 0
South
North
Central
Urban
West
Others
Source: Zanzibar Commission for Tourism and C9 Hotelworks Market Research
Hotel Pipeline Hotel Name
Location
Keys
Opening Year
Gold Zanzibar Beach House & Spa*
Nungwi
6
2018
Zuri Zanzibar Hotel & Resort
Kendwa
55
2018
Hotel Verde Zanzibar (former Mtoni Marine Hotel)
Mtoni
106
2018
Anantara Zanzibar Resort
Matemwe
100
2020
The Ritz-Carlton, Zanzibar
Matemwe
90
2021
*Additional keys for existing hotel
Source: C9 Hotelworks Market Research
C9 Hotel Market Trends: March 2018
3
Zanzibar 2017 Key Domestic & International Scheduled Flights By Region WESTERN EUROPE
EASTERN EUROPE
MIDDLE EAST
312 Flights
156 Flights
989 Flights
Key Feeder: Italy
Key Feeder: Turkey
Key Feeders: UAE, Qatar, Oman
Africa
Tanzania
1,771 Flights
17,780 Flights
Key Feeders: Kenya, Ethiopia
Key Feeders: Dar es Salaam, Arusha, Kilimanjaro
Source: C9 Hotelworks Market Research..
C9 Hotelworks Company Limited 9 Lagoon Road, Cherngtalay, Thalang, Phuket, 83110, Thailand (Office located at the entrance of Laguna Phuket) T: +66 (0)76 325 346 www.c9hotelworks.com info@c9hotelworks.com