Unguja. The Zanzibar Commission for Tourism has issued a strong warning against the illegal registration of tourism businesses, saying it has uncovered cases in which local citizens are being used as proxies to front enterprises that are in fact owned by foreigners who do not meet the country’s investment requirements.
In a public notice issued on January 10, 2026, the Commission said investigations had revealed fraudulent practices in the tourism sector, particularly in the registration of tour companies and tour guiding services.
Under the Tourism Act No. 6 of 2009, the operation of tour companies and tour guiding services is reserved exclusively for Zanzibaris. In addition, the Investment Act of 2023 sets out specific criteria governing the participation of foreign investors in the tourism industry.
Despite these legal safeguards, the Commission said some individuals have been facilitating the registration of tourism businesses on behalf of foreigners who fail to meet the legally recognised investment thresholds.
“The Commission has noted that some locals are being used as proxies to register tourism projects and businesses whose actual owners are foreigners,” the notice reads. “This practice is unlawful and undermines the integrity of the tourism sector.”
The regulator warned that any tourism project or business found to have been registered under such arrangements will be closed immediately, with strict legal action taken against those involved.
According to the Commission, using proxies to conceal the true ownership of a tourism business amounts to economic sabotage under the country’s laws.
In a move aimed at encouraging compliance, the Commission has given individuals currently involved in such arrangements until January 20, 2026, to come forward voluntarily.
Those who fail to do so, it said, will face a special inspection and law enforcement operation that will be launched after the deadline.
“Legal action will be taken against any individual or institution found to be involved in these unlawful practices,” the Commission warned.
The notice was signed by the Executive Secretary of the Zanzibar Commission for Tourism, Mr Arif Abbas Manji, who reiterated the authority’s commitment to safeguarding the tourism sector from malpractice and ensuring that investments in the industry comply with existing laws.
Tourism remains one of Zanzibar’s leading economic sectors, employing thousands of people and attracting both local and international investors.
