Tourism investors are up in arms about the Zanzibar government’s 107% increase in minimum wages for workers in the industry.

Recently, Zanzibar’s Minister for Labour, Maudline Castico, raised the minimum wages for employees in the tourism industry on the archipelago from TZSh145,000 (€54) to Sh300,000 (€111) per month.

But the salary hike has faced opposition from tourism investors with fears that it could deal a blow to the hospitality industry.

Zanzibar Association of Tourism Investors (ZATI) Chairman, Seif Miskiry, termed the new wages unrealistic, warning that they might hamper tourism growth.

Miskiry said: “We are not against the idea of increasing minimum wages for workers in the industry, but they should be reasonable.”

The ZATI boss pointed out that the impact of the sky-high wages would cripple tourism, warning that it could lead to closure of hospitality businesses and job losses.

He argued that any decision to increase salaries in the industry must consider the plight of a big number of small-scale investors who are already struggling to pay their employees.

ZATI members had suggested that the minimum wages for workers in the tourism sector be increased from Sh145,000 to Sh180,000 (€67) per month.

“We do agree that there must be an increase in minimum wages in Zanzibar. But the 107% hike is not viable for the tourism industry. Unless the decision is reversed, the wages will affect business operations,” Miskiry warned.

The ZATI official appealed to Zanzibar President, Ali Mohamed Shein, to intervene over the matter in a bid to bring down wage expenses.

According to Miskiry, the association had presented its proposal to the Ministry of Labour over the workers’ wages.

The Ministry officials, he added, had promised to meet the investors in September to discuss the issue for them to come with reasonable wage hike.

However, the Ministry, he noted, went ahead announcing the minimum wages increase without considering the views of the investors.