How Tourism Is Fueling Zanzibar’s Real Estate Boom
With tourism booming, like I said before, real estate gets fueled by tourism here on the island. Last year, we almost hit a million guests. So, that's almost a three-fold. Um, almost, yeah, 200% increase. What makes Zanziba truly special for you? It's more than just an island. What I can tell people is Zanza isn't just a dream. It's a smart move.
[Music] Hello and welcome to Zanziba Blueprint. This is your host Nordin Muhammad. Today with me a very distinguished guest, one of our best directors. Please introduce yourself. Hello. Uh I'm Abuim Rousi, one
of the directors here at Padco and also co-founder of explosi.com. All right, that's that's very good. First of all, we're very happy to have you out of your very tight schedule, at least accepting to be part of this wonderful podcast, I believe. So, Mr. Abu, in your introduction, you said something about uh Explosenzi. So, first
of all, tell us what is Explosenzi. People need to understand. Yes. So, uh as you know, Exploanzi is a tour company here in Zanziba. We've been running for about three three years. Explorzanzi.com is the full name. Mhm. Um the co-founder
have been heavily invested in this since the beginning. It's a startup and the the whole concept of exploranzi is responsible and ethical tourism. Mhm. Here in Zanza, a lot of people are um pretty much not as updated with technology. So by using technology we're bridging the gap to from the locals who can't use uh phones and tech and um straight to the um customers. So explore
Zans is a platform that connects two people um together and it's just a one-stop center for everything to do with uh tourism from transfers, activities and of course uh accommodation. Wonderful. This this is very great. Uh so the reason I asked you about explorzi first of all people get to understand what you do and of course our podcast today is going to speak much about the tourism and the real estate industry specifically here in Zanziba. So basically you're a diaspora right you came to Zanziba because of the future because of the opportunity might you have seen I would like to ask you the first question what makes Zanziba truly special for you as a manager and as a local right now uh Zanziba is it has it it's more than just an island Zanza has so much to offer quality of life so it's so peaceful the rich culture we have the rich history we have and just the sense of community within our um environment.
Mhm. Especially me as a Stonetown boy. Um Stonetown boy, I could uh I can never see myself leaving Stone Town even though I would love to have a beach or property. But Stonetown for me has always been uh deeply invested in my heart and just this is home. Um an
island where many many people come and fall in love with it. It has a a very good energy and inviting energy when you're here and you just um forget about all of the stresses about the world when you're here especially on vacation of course the high the height of it is through vacation so you have spoke something about vacations and how beautiful Zanziba is and uh the reason I want to ask you this question right now is Padco has given you an authority to being the person responsible under the property management and also the tour. How would you relate these two staff because we're highly depending on those two staff in the coming time of course. Um so as you know I'm um the head of particle management and in tourism the fuel behind tourism is real estate. So the tourism fuels real estate and real estate accommodates tourism. At the moment in Zanziba, we don't have enough properties to accommodate the guests that we have especially during peak seasons and tourism is growing at a rate that um the properties can't keep up with. So with padco management and the
experience I have in tourism combined together uh we will know how to make sure the occupancy of these properties that we have uh with p with uh blue pearl and chuani shores are filled up. Why? because the developments have all been chosen in strategic locations where most of these uh locations that we choose are tourism hubs where tourism hubs yeah accommodation is needed and especially luxury accommodation private living you know being inside your own villa your own apartment this kind of um accommodation here is not as common and um yeah all right so on top of that I will I would like to add something which is very very important over two years ago, Zanziba has been approaching over millions people and this we're speaking of the international tourism. So can you speak a bit uh a bit low about uh the seasonal of the tourism industry here in Zanziba at least? So traditionally uh Zanziba had only two seasons. Uh in 2015 the statistics were there was around 350,000 guests in a year. And then um
last year we almost hit a million guests. So that's almost a three-fold um almost yeah 200% increase. Mhm. In the last 10 years and it's and this increase started during COVID. So now the tourism in Zanzba has completely shifted. We don't have a low season like we did before 10 years ago. 10 years ago
it was December for Christmas, New Year's, January, and then it completely dies down in February maybe for Valentine's and stuff and then it just dies down all the way again to early I mean late June and the you know the European holiday season. Mhm. Uh July, August, it gets busy then dies down again in September. But since our tourism has increased so much, it's busy from June all the way to March. And then we don't have a low season. Like right now it's the rainy season, but we still have a lot of guests coming. Of course. Of course. I see. Yeah. Not not
like December, but it's I could say it's a it's a stable amount of guests coming every month. And we have a lot of local tourism during these months. And then and then the rainy season doesn't mean like it's raining 24/7. It's just bursts of rain for a few hours or maybe sometimes just a few minutes a day, but it's it's called a rainy season for a reason. The type of guests that we do get are people who enjoy the rain. And there's a lot of people who do enjoy the rain, especially when they're sleepy.
Yeah. So from your perspective as a person who a who a very who's an expert to the tourism industry is it the right time for the people that are listening to us to come and invest in Zanziba real estate market 100%. this is the best time. Um especially now with our developments with you know that Blue Pad sold out in 45 days that you could tell that people were itching to know something like this was about to happen in Zanziba and then when the CEO did launch it maxed we sold out in 45 days which was uh unheard of in Zanziba. So that in itself just told us there's a huge demand for this and um people are ready and they know that it's not late still early. I've said this before, the best time to plant a tree is today if you haven't done it before. So we're
going through our boom period right now in Zanziba. And uh this this is literally the golden era for us. Golden era. Yeah, I keep repeating this, but it's the golden era for Zanziba. this is the best time to invest because the infrastructure is growing cuz if you invested 20 years ago you you don't know what what the future holds. You could
think about the potential Mhm. of oh maybe it's going to be like this but without the initiatives through you know the government and many investors coming together to uh invest in Zanziba there would have never been this uh period of growth that we're experiencing right now. So it's uh still early days, very early. So speaking of tourism booming,
right now the tourism industry is booming. How do you think the tourism booming would affect the real estate market, the industry of the real estate in general? With tourism booming, like I said before, real estate gets fueled by tourism here on the island. Mhm. And then if tourism goes up, that only means the accommodation rates and the occupancy are only going to go up. And
tourism booming, there's a demand for luxury living. Mhm. especially in um villas, apartments in um you know private areas cuz you know a hotel is always a lovely place to stay but but there's a lot of people who like uh staying in their own refined spaces and they don't want to you know get bothered by other people. They just want to be inside have a good time with their families. Uh privacy is very important for a lot of guests. So we accommodate to all of this and it's uh more responsible when you look at it because um whatever people want to do and have fun is all inside a private uh residency. I want to ask you like how
do you see Zanziba in 5 years but the perspective of Zanziba how was it speaking from the tourism and the real estate market 5 years ago and how do you see it five years from now? So tourism 5 years ago was uh completely different to how it was now. It was less regulated. There was there was only a few players in the game. Not a lot of people were heavily invested in tourism. And then um as soon as the huge increase during COVID as you know our country was open Tanzania was open Zanziba was open and uh lot of guests came especially when their countries countries open too and then we saw that there was a problem in the tourism sector where people we can't accommodate these many people because there's not enough people to look after them in the tourism sector and this is where the tourism um business started booming cuz everybody wants to become a tour company and that's when obviously I we saw the opportunity to open explore Zanzi and then now it's completely different it's more regulated way more professional than than it was before and in 5 years from now um I think it's going to be top tier when it comes to service cuz we're really working on um regulating tourism in Zanziba. The
government's really working, the Ministry of Tourism is really working hard on regulating and making sure we follow a specific standard where we show our culture, our ini we say utaduni, utaduni, utaduni, our hospitality and the type of services that we want to uh give as an island cuz we want guests to come back. Mhm. So it's going to be very very busy in the next 5 years. Wow. Speaking of big busy the next 5 years, many digital nomads and uh entrepreneurs are looking for new bases. Why do you think Zanza is an ideal destination for them? Yeah. Especially for digital nomads, this is a haven for them because imagine being in Nungi in your villa. You're working um you know we'll have a white internet, highspeed Wi-Fi. All of this
is accessible on the island. Of course, you could work and then when you're off work, you could experience being on the beach. You could go to member island. You could have fresh fruits, fresh foods with no GMOs in them. So, it's uh you know, many digital nomads uh have this kind of lifestyle of being fit, eating healthy, Mhm. having the
freedom to explore new uh locations which the Zanza Zanza has plenty of and just building a sense of um they want to feel at home and when you're in Zanza no matter where you are once you're there for a few few days you'll start feeling at home because our culture is very uh accommodating to guest I could say we're hosts with the most Yeah yeah yeah yes yes so what do you think what What is the what's the expectation of the investors the lifestyle expectation for investors that are looking to invest with Padco? What what do you promise them when it come to the lifestyle expectation for them? With Padco, of course, you're not only buying a building, but you're buying a lifestyle. You're buying into a partnership with Padco cuz we we as Padco management will be managing your properties for you. And uh the lifestyle itself, waking up to the sound of the waves at Chwani Shores, be breakfast being delivered to your apartment, your villa, having the accessibility to being on a deck and a boat taking you to these wonderful islands such as Prison Island, Nakupenda, Bow, Chumbbe. Mhm. And with Padco management, of course, we will be managing your this is where our partnership comes in. Even after we you you buy a property with us, we'll manage your property for you. And with the
experience I have in tourism, you will see um the nothing could be hidden. Everything could be very transparent. You'll know when guests check in, check out, what your monthly income is and all of the overheads. Nothing would be everything
could be on on a clean white paper for for both Padco management to see and you guys to see. Okay, that's that's that's that's very very very very helpful. So I would like to ask you we know like generally the government is doing a lot but what do you think the government support when it come to these two industry the chim and the real estate? So with the government support, we have Zepa, Zanza Investment Promotion Authority. It's a one-step center and they make sure they walk with us through the whole process from um all of the compliances that we need to do, all of the permissions, all of the regulations and um from land um acquisitions to knowing that everything is fine. And lastly, of course, the visas. They they help us with all of
this stuff and um they've been very supportive to us during the process of um you know, getting the approval for Blue Pearl and Chuani Shores. It's been a a like I said a a one-step center. So apart from the government um helping us and making sure everything goes smoothly, there's an association that's recently been um formed. It's called REDA and it's all of the people who are involved in development, real estate, they come together. All of our concerns are spoken on a table and then we move forward by working with government officials to make sure uh our voice is heard. if there's anything um that that needs to be fixed basically. So the
association is new. Um like I said, we're moving forward in Zanziba. These are the kind of things that are definitely going to drive real estate and development much more smoothly. Mhm. So we make sure we move fast, we act fast, and we give properties at a pace that we promise at. Oh, so you mentioned something about radar and this the government supports and everything and on top of that I want to add something which is very very important and this help a lot of the people that are willing of they're like skeptical when it come to investing in Zanziba this organization such as Zeper and Raiders are giving them uh a very conducive environment to see it differently but we as part also we play a very wonderful roles to ensure that they feel secure when they come invest in Zanzib number one we keep transparency we we we are very open we there's no hidden cost we tell you everything's up up front starting from the service charge uh our our prices and uh every cost that you're going to incur what you're expecting yes we we tell you up front and then we when we understood that people are still having uh I would say an atrocious atrocious uh belief when it come to Zenza So we even created a payment plan that give them stability and uh assurance and assurance. So you just
need to pay a little meanwhile while we are developing to show you that we are very we are very we are very committed to do whatever we we are doing. So this with the government supports and everything create a very wonderful environment to the people that are are very unsure when it come to coming coming here in Zanzib. Yeah. First of all remember PCO gives you your keys when you've paid 80% of the value of the property that you've purchased. Of course that's the type of assurance and security that we're giving you. You need to be happy with your
house. Yes. and then you and then you could um transfer the rest of the funds. So this is very rare in um developing. Most people want 100% when you give them the keys. And with Padco, the transparency is like you said, it's um unbeatable. We show you everything that we're doing and then apart from that, our relationship carries on even after you've purchased the property cuz we as particle management would be managing your property for you. That that was
supposed to be my next question. Yes. I I wanted to ask you that yes from perspective of post handing over after handing over to the people that are not living in Zanziba like they wanted to invest with us they trusted us but they're not looking to live in Zanziba right so how is with the journey of the property management to them will look like speaking of transparency cares and everything could you explain it into detail on how this property management journey will look like to someone who who never spot uh set a foot in Zanziba. I'll give an example on my side. I was speaking with one of my customer and he say Nudin I'm buying this property. The reason I'm buying this property is because I love the investment. I trust your company. I
trust your CEO and uh I'm very I feel very secure but I don't plan to come and even visit Zan even once. So to the people like this, we have people like this, right? People who who who bought property from us without even visiting Zanziba. Yes. Could you explain the property management journey to them? Yes. With uh Padco, of course, most most
of our investors have never been to Zanziba before. They're planning on coming, but this is where um with this is where Padco management really takes its its um presence in in in the development. M our job as padco management is to make sure your property is filled. Most of our investors have bought the property as a income generating asset. Mhm. Not to live in. So with occupancy being very high in Zanzib but especially with the hubs that we've chosen we've said that we've chosen very strategic locations where we know the demand for luxury living plus the location and the way tourism is all three of this will only bring occupancy high into our developments. And with particle management and my experience, the type of um services that we want to give to our potential um clients who would be staying in our developments are it's going to be top tier. And with PCO
management, we're going to be very transparent as well. We'll show you how many days your property's been uh occupied during the month. We will make it so much easier for you. Like I said,
Zep is a one-stop center to invest in Zanziba in terms of, you know, developing, but Padco is another platform where you're investing in a income generating asset that you don't even need to come and see. Mhm. But, you know, through our monthly reports how much your property has been making. And this is um something that hasn't really been done in Zanzibar. We're probably one of the first people doing this where we build for you, we hand over and we manage the property to make sure we give you the ROIs that we've said on our social media. All right. That's uh that's that's that's was very detailed I would say. So finally to someone who is
listening to you right now Mr. Boy. Yes. for the first time they they're hearing Zanziba. For the first time they are seeing this podcast. For the first time they they are hearing about existence of our company Padco. What do you want to
tell them? What I can tell people is Zansba isn't just a dream. It's a smart move. It's one of the only places a few places in the world where paradise meets profit. And if you want your money to work for you while you're not in Zanziba and you're in a different location, this is the right way to move as we're very ethical, very transparent, and early stages of Zanziba's boom in tourism and real estate. So, it's a no-brainer for someone who wants to um make an investment and make your money work for you. Padco is the way forward. As you
know, smart investors move early. Ask anyone who invested in Dubai in 2001. Mhm. And where are they now? Zanziba has
all of the ingredients of moving in the same direction. Infrastructure, rapid digitalization, airports are being built like the whole structure is just uh accommodating tourism and the growth of Zanziba and Tanzania as a whole of course. Mhm. And this will only make it much easier for more guests coming to Zanziba. High ROIs and rapid property
value appreciation. On top of that, I I want to tell you something that maybe it will catch the attentions of our listeners, right? Do you know, just give a guess how much of the mobile transaction happened in Africa in 2023? Just tell me. Give me a rough number. The whole of Africa. Correct. The whole of Africa. The whole of the continent. I'm going to
go for I'm going to be I'm going to say hundred billion dollars. Hund$undred billion dollars. Yeah. What if I tell you that it's much more than that? Can you guess again? 200.
No. Three. No. Four. No. Five. It is $700 billion. Wow. Only 2023. I don't know what happened in 2024 but in 20 and these are like mobile transactions 700 billions in Africa. What did what does this tell you? Um like we're going up. They they already
know, right? Yeah. They we don't really need to answer the answer is there for you. The answer is there. All right. Thank you so much for being part of this and listening this wonderful podcast.
Today we try to explain the uh the relationship basically between the tourism and this the real estate industry. For the people that want to understand and learn more, please do visit our website www.padco.com. Also don't forget to subscribe, like, share and leave us a comment right there of what you need to hear next time and thank you so much. Looking for smart secure investment? Zanzibar is rising and Padco is leading the way. Beachfront properties, high
returns, full ownership. This isn't just real estate, it's your future. Invest with Padco. Own a piece of paradise.
2025-05-01 04:01
