Resignation of Tourism Chief Coincides with Controversial Insurance Policy
Rahim Bhaloo, the Chairman of the Zanzibar Association of Tourism Investors (ZATI), has resigned from his position, three months before completing his three-year term. Bhaloo, who also serves as the Chairman of the Zanzibar Commission for Tourism (ZCT), cited personal family issues as the primary reason for his decision.
Bhaloo expressed that he felt unable to continue dedicating his time and resources to the role. “I feel I can no longer invest my energy and resources into this role,” he said in an interview with Mwananchi Digital on August 5, 2024. He stated that it was time for new leadership to bring fresh ideas and further develop the association.
During his tenure, Bhaloo was credited with significantly expanding the membership of ZATI from 18 to 500. He also ensured robust financial management within the organization. His resignation comes at a time when the tourism industry in Zanzibar is facing new regulatory changes.
Starting September 1, 2024, the industry will be required to pay a mandatory insurance fee of USD 44 (approximately TZS 118,360). This fee was recently announced by Dr. Saada Mkuya Salum, the Minister of Finance and Planning. The new insurance policy aims to enhance services for tourists, covering various issues such as health, lost luggage, accidents, emergency rescues, lost travel documents, and even the repatriation of remains in the event of a tourist’s death.
The insurance will be provided by the Zanzibar Insurance Corporation, a government-owned entity. The policy does not consider whether individuals already have travel insurance from other providers. Previously, travel insurance was not mandatory in Tanzania and other East African countries. However, this new requirement has raised concerns within the tourism sector, which is a cornerstone of Zanzibar’s economy.
Tour operators worry that the additional cost may make Zanzibar a more expensive destination. “While the government’s intention is to improve the tourist experience, this may drive away our visitors due to the additional requirements they must comply with,” said Sued Ali, a tourism operator.
Regarding Bhaloo’s resignation, some stakeholders in the tourism sector acknowledged his contributions. They noted that while his departure might create a noticeable gap, it was important to respect his decision and wish him well. “He has brought the institution a long way, and although his absence will be felt, we understand that if he felt something was not right, he had to step down,” they remarked.
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