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Home Business Travels

Zanzibar Grapples with Alcohol Shortage as Tourism Sector Faces Risk

Business 360 by Business 360
February 7, 2024
in Business Travels, Tourism
0
Zanzibar Grapples with Alcohol Shortage as Tourism Sector Faces Risk

Zanzibar, renowned for its pristine beaches and vibrant culture, is facing a crisis as a shortage of alcohol rocks the island, posing a significant threat to its vital tourism sector. Prices of beer have surged by nearly 100% following a disruption in the supply chain triggered by a sudden change in importers.

The predicament began earlier this year when the Zanzibar Liquor Control Board (ZLCB) delayed renewing permits for the island’s three longstanding alcohol importers – One Stop, Scotch Store, and ZMMI. These firms, with a combined history of over two decades in supplying alcohol, saw their licenses left in limbo for reasons yet to be disclosed.

To secure licenses, alcohol importers must meet stringent criteria, including being Zanzibari-born residents, maintaining a clean tax record, possessing a warehouse, and having a delivery vehicle. Furthermore, importers are required to pay a substantial $12,000 annual fee to the regulatory board.

Last month, ZLCB granted licenses to three new companies – Kifaru, Bevko, and Zanzi Imports. Despite this move, local hoteliers report ongoing struggles to meet the escalating demand for alcohol. The new firms are allegedly entangled in a prolonged vetting process, amid emerging reports suggesting the involvement of non-Zanzibaris in the operations of these companies, a potential violation of local laws.

As the island grapples with this unprecedented alcohol shortage, concerns loom over the tourism sector’s stability, as visitors may find the allure of Zanzibar diminished without access to the island’s famed hospitality and vibrant social scene.

Authorities are under pressure to swiftly address the situation and ensure the resumption of a smooth alcohol supply chain to safeguard the economic backbone of Zanzibar’s tourism industry.

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