Minimum wage rise hits hotel sector in Zanzibar

ZANZIBAR TOURISM INVESTORS CALL CRISIS MEETING OVER RISE IN MINIMUM WAGES

(Posted 07th July 2017)

The newly announced increase in minimum wages for Zanzibar from the previous 200.000 TShs to now 300.000 TShs has raised the alarm bells among the island’s tourism industry, as they are already saddled with extreme rises for other tourism products on the mainland, especially after the overnight royalty and concession fee increase by TANAPA on the 01st of July.
Tourism investors on Zanzibar yesterday got together to discuss their options vis a vis the government announcement and seek an agreed position how to react and mitigate the 50 percent rise in wages.
The rise is even higher when including security company personnel where minimum wages stood at 145.000 TShs and which are now raised by 106 percent, adding a massive extra cost burden to the already heavily taxed industry.
Watch this space for further updates and developments.

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