By Business Insider Reporter
Zanzibar is set to experience a major tourism and real estate boost with global hospitality giant, Hilton, announcing its return to the Tanzanian archipelago through the development of Canopy by Hilton Zanzibar The Burj, part of the sprawling Fumba Town mixed-use development.
Unveiled during the Future Hospitality Summit Africa 2025, the new hotel is part of Hilton’s broader plan to triple its presence in Africa, bringing the total number of properties on the continent to over 160 hotels.
The Zanzibar investment underscores growing confidence in the island’s rising status as a premium tourism, lifestyle and business destination.
A lifestyle-driven destination
Slated to open in 2027, the Canopy by Hilton Zanzibar The Burj will offer 162 modern guest rooms and suites, along with signature dining spaces and facilities designed to deliver a blend of local authenticity and global comfort.
It marks Hilton’s re-entry into Tanzania, reflecting renewed investor interest in East Africa’s hospitality potential.
The hotel will be a centrepiece of ‘The Burj Zanzibar’, a high-profile residential and commercial hub being developed by CPS Live Limited, and is expected to attract international tourists, digital nomads, and business travellers seeking unique cultural experiences paired with high-end amenities.
“This is a big win for Zanzibar,” said Zanzibar Investment Promotion Authority (ZIPA). “The Hilton brand carries global trust and visibility. Its presence will not only lift the island’s tourism profile but also catalyse real estate growth, job creation and SME opportunities.”
Economic impact on the Isles
Zanzibar’s economy is heavily reliant on tourism, contributing about 30% to the Isles’ GDP.
The addition of an internationally recognised lifestyle hotel will enhance its ability to capture upmarket tourism, particularly from Europe, North America and the Middle East.
Tourism analyst Fatma Omar notes that Canopy by Hilton will “help bridge the luxury hospitality gap in Zanzibar,” especially as new real estate projects, such as eco-villages and business parks, attract long-stay visitors and professionals.
Additionally, the hotel is expected to create dozens of direct jobs in the hospitality sector and stimulate indirect employment across construction, logistics, retail, and food supply chains.
With Hilton also announcing it will hire 18,000 people across Africa in the coming years, Zanzibar stands to gain from both skills development and international best practices.
Broader hospitality strategy
Hilton’s ambitious Africa-wide plan includes over 100 new hotels, with new markets opening in Ghana, Benin, Nigeria, Angola, and Madagascar.
The company is focusing on locations with mixed-use developments, growing aviation access, and untapped tourism potential—factors that align closely with Zanzibar’s current trajectory.
Carlos Khneisser, Hilton’s Chief Development Officer for Middle East & Africa, said: “Africa offers incredible opportunities, from vibrant cultures to world-class natural landscapes. Zanzibar exemplifies this vision—blending heritage, sustainability and a future-facing tourism economy.”
The Canopy by Hilton project is expected to strengthen Zanzibar’s competitive edge against other Indian Ocean destinations like Mauritius and Seychelles.
With new airports, improved infrastructure, and a pro-investment policy environment, the Isles are positioning themselves as a top-tier investment location in East Africa’s blue economy. As Zanzibar advances its economic transformation plan -anchored on tourism, real estate, and services – Hilton’s return could be a turning point, signalling a shift toward high-value, sustainable tourism that benefits both investors and the local population.
