Tanzania Association of Tour Operators recently engaged the Zanzibar Finance Minister, Dr Saada Mkuya, over mandatory inbound travel insurance the Zanzibar government has proposed. TATO Chairman, WILBARD CHAMBULO, explains concerns of tour operators in an interview with The Guardian. Excerpts…

On Friday, TATO organised a meeting with Zanzibar's Minister of Finance, Dr. Saada Mkuya. What was the purpose of the meeting?

The Zanzibar government recently announced a new compulsory insurance policy for all visitors to the island. This policy costs $44 for the duration of 92 days, but it is only valid for the period of the visitor's stay. The insurance was developed in partnership between Zanzibar Insurance Company (ZIC) and AXA, the leading French insurer. 

What issues does this decision raise?

Answer: This decision raises several concerns. The insurance policy was introduced on a very short notice, providing no time for adequate discussion, consultation, or adjustment. This lack of preparation means tourists who planned their trips well in advance were not given reasonable notice. 

Furthermore, many tourists are already covered by their own insurance policies, raising the issue of whether they will be reimbursed twice if a claim arises. The practice of refunding multiple policies for the same claim is generally not permitted, creating a moral dilemma and possible legal conflict.

Has the Zanzibar government understood these issues?

It appears that the Zanzibar government may not fully grasp these concerns. They might have introduced this insurance with the intention of enhancing tourists’ safety without considering the existing coverage many tourists already have. 

So, in your opinion, is AXA to blame?

Yes, for at least two reasons: First, it was AXA that came up with the idea for this insurance. We know that this same company (AXA Maroc to be precise, a subsidiary of AXA), recently approached ministers of Tourism of Tanzania and Zambian for the same service offer. Second, AXA has all the statistics in hand to know the (very high) insurance rates for tourists arriving in the island of Zanzibar. They are, therefore, committing a moral fault with regard to the previous point.

I would just like to finish on one point. Why hasn’t AXA Morocco succeeded in setting up an identical system in its own country, if it is so beneficial to tourists?

Morocco is a highly visited country, with a lower level of insurance cover than Zanzibar. If I am invited by someone who serves me a dish that he doesn’t taste, I will ask myself questions. That’s what TATO is doing.

What would you advise the Zanzibar’s Minister of Finance?

First, I would tell her about thousands of operators who sell the destination: This insurance is perceived as an unfair tax and tarnishes the image, not only of Zanzibar, but also of Tanzania as a whole.

Second, I would carry out a thorough study over a period of one month on the percentage of tourists already insured. If we find, as we at TATO believe, a rate of over 90 per cent, then we have to recognise that we are dealing with a case of forced selling that runs counter to all the probity of the insurance sector. A serious offence!

Finally, if this insurance is just a tax in disguise, then it needs another name: Eco-tax, Educational tax, or what have you? There is no shortage of reasons acceptable to the world of tourism, and leaving an acceptable notice period.