Zanzibar’s Mandatory Tourist Health Insurance

Key Takeaways

• Zanzibar tourist health insurance provides a sustainable, tourism-linked source of health financing that reduces reliance on donor funding.
• Mandatory travel health insurance generated over USD 20 million in six months, creating significant fiscal space for health investment.
• Claims payouts remained low relative to premiums, enabling reinvestment in health infrastructure, digital systems, and service quality.
• Tourism proved resilient, with visitor arrivals increasing by 17 percent after the policy was introduced.
• Public stewardship combined with private sector participation enabled efficient administration and scale.
• Digital platforms simplified insurance purchase, verification, and claims processing, improving efficiency and transparency.
• Reliable reimbursement has strengthened hospital finances and reduced administrative and financial risk.
• Investments made for tourist coverage have improved emergency services, digital records, and care delivery for local residents.
• The scheme enhances health system resilience and preparedness for pandemics and public health emergencies.
• Zanzibar’s model offers a practical blueprint for other tourism-driven economies seeking innovative health financing approaches.

Executive Summary

This report examines Zanzibar’s mandatory tourist health insurance, introduced in October 2024, as a pioneering example of tourism-linked health financing in Africa. The policy requires all foreign non-resident visitors to purchase a comprehensive travel health insurance policy, priced at USD 44 for adults and USD 22 for children, providing coverage for up to 92 days. Managed by the government-owned Zanzibar Insurance Corporation, the scheme is implemented through partnerships with private insurers, digital service providers, and accredited health facilities.

Early performance data demonstrates strong results. In its first six months, Zanzibar’s tourist health insurance generated more than USD 20 million in premium revenue, while claims payments totaled only USD 1.6 million. This surplus has created a reliable source of funding for health system upgrades, digital infrastructure, and service quality improvements that benefit both tourists and residents. Importantly, the introduction of mandatory travel health insurance did not negatively affect tourism demand. Visitor arrivals increased by 17 percent in the month following implementation, indicating that the policy is compatible with sector growth.

Beyond revenue mobilization, the scheme has reduced financial pressure on hospitals by eliminating uncompensated care for visitors, strengthened financial sustainability, and supported job creation across healthcare and digital services. The report concludes that Zanzibar’s tourist health insurance offers a scalable and replicable model for countries seeking innovative health financing solutions anchored in tourism.