ANALYSIS OF ZANZIBAR

HOTEL INDUSTRY

Project Report Submitted To

“The Institute of Commercial Management”
In Partial Fulfilment for the Award of the Degree Of

Graduate Diploma in Management Studies

By

Mr Mustaqeem Hajimohamed Nurmohamed

Student number: 2201349

Under The Guidance of

Mr. Rany Chowdhury

Principal
“Zanzibar College of Business & Management”
Zanzibar, Tanzania

Duration: December 2018 to November 2019

At this Study report, I have concentrated on the following
area at The Zanzibar Hotel Industry:
Hospitality Industry in Zanzibar
History of Hotel Industry
Major players of the industry in Zanzibar

About this research project report:

This project report is a part of my ‘Graduate Diploma in Management

Studies’ at ‘Zanzibar College of Business & Management’ under The Institute
of Commercial Management. The purpose of this research case study is to kn-
ow the Hospitality Industry in Zanzibar. I have tried my best to make overall
analysis of Hotel Industry in Zanzibar.

Candidate’s Statement:

I hereby declare that the work incorporated in this report entitled “Analy-
sis Of Zanzibar Hotel Industry” in partial fulfillment of the requirements for the
award of Graduate Diploma in Management Studies is the outcome of original
study undertaken by me and it has not been submitted earlier to any other Univ-
ersity or Institution for the award of any Degree or Diploma.

Mr Mustaqeem Hajimohamed Nurmohamed

Student number: 2201349

Date: 05/12/2019
Place: Zanzibar, ZCBM

2
 It was really difficult for me to complete the Graduate Diploma research
project without getting co-operation of certain people. In other words there are
so many external people who directly or indirectly help me in my research
project.

First of all, I am very grateful to our college Principle Mr Rany Chowdh-

ury for his able leadership and our project Report who providing their valuable
time and guideline to me regarding the Research project report. I am also
thankful to Mr.Harsha Jariwala and Mr. Abhishek Parikh who gives guideline
our group to do management research report in their Hotel and helped me by
giving all the required information for a period.

I am also thankful to my friends who help me and guide me.

3
Topic Page No.
Acknowledgment 3
Preface
To the viewers of this report 6
HOTEL / HOPITALITY INDUSTRY IN ZANZIBAR 7-8
Evolution 8
HISTORY OF HOTEL INDUSTRY 9 - 11
Past 9
Present Scenario 9
Future & Potential Growth 9
Facts and figures 9
Star Rating (1 - 5) 10 - 11
MAJOR PLAYERS OF THE HOTEL INDUSTRY 12 - 16
Tembo House Hotel 12
Park Hyatt Zanzibar 13
Kendwa Rocks Beach Hotel 14
Golden Tulip Zanzibar Resort 15
Double Tree Resort by Hilton Hotel 16
COMPANY PROFILE 17 - 18
Objective 17
Vision 17
Mission 17
Personnel Plan 17
Products 18
Sales Strategy 18
Marketing Strategy 18
METHEDOLOGY 19 - 20
STRATEGIC ANALYSIS OF INDUSTRY 21 - 24
PEST Analysis 21 - 22
SWOT Analysis 22 - 23
BCG Matrix 23 - 24
DATA ANLAYSIS AND INTREPRETATION 25
FINDING OF THE STUDY 34
Research limitations 35
Recommendations 36
CONCLUSION 37
QUESTIONNAIRE 38
REFERENCES 39

4
 Page No.
CHART – 1 Front Desk Service 26
CHART – 2 Clean and Uniformed Employees 27
CHART – 3 Attractiveness of Restaurant’s Atmosphere 28
CHART – 4 Maintenance of Hotel’s Interior and Exterior 29
CHART – 5 Attractive Outdoor Surroundings 30
CHART – 6 Well Functioning Equipments 31
CHART – 7 Safe Hotel Environments 32
CHART – 8 Responsiveness of the Staffs 33

5
 Preface

To the viewers of this report:

This report is prepared in accordance with our findings on the Hospitality

Industry in ZANZIBAR. This report has been prepared on the basis of desktop
res- earch conducted from December 2018 to November 2019. Because it’s a
sample report created for business development purposes, our report may not be
suited for any purpose other than to assist you in your evaluation of our research
capa- bilities. Additionally, our report reflects events and circumstances as they
curre- ntly exist.

We have not independently verified the information gathered or containe-

d in this report and, accordingly, express no opinion or make any representatio-
ns concerning its accuracy or completeness. We shall be pleased to receive your
observations on our report. Our report is for your information only and should
not be quoted, referred to or transmitted to another party, in whole or in part,
without our prior written consent.

6
 HOTEL / HOPITALITY INDUSTRY IN ZANZIBAR

According to the Oxford Dictionary, hospitality means “the reception and

entertainment of guests, visitors or strangers with liberality and good will”. The
word hospitality is derived from hospice, a medieval “house of rest” for traveler
s and pilgrims. Hospitality then includes hotels and restaurants.

Hospitality is all about offering warmth to someone who looks for help at
a strange or unfriendly place. It refers to the process of receiving and entertain-
ing a guest with goodwill. Hospitality in the commercial context refers to the
activity of hotels, restaurants, catering, inn, resorts or clubs who make a vocat-
ion of treating tourists. Helped With unique efforts by government and all other
stakeholders, including hotel owners, resort managers, tour and travel operators
and employees who work in the sector, Tanzanian hospitality industry has gain-
ed a level of acceptance world over. It has yet to go miles for recognition as a
world leader of hospitality. Many take Tanzanian hospitality service not for its
quality of service but Tanzania being a cheap destination for leisure tourism.

With unlimited tourism and untapped business prospects, in the coming

years Tanzanian hospitality is seeing green pastures of growth. Availability of
qualified human resources and untapped geographical resources give great pros-
pects to the hospitality industry. The number of tourists coming to Tanzania is
growing year after year. Likewise, internal tourism is another area with great
potentials. The hospitality industry is a 3.5 trillion dollar service sector within
the global economy. It is an umbrella term for a broad variety of service industr-
ies including, but not limited to, hotels, food service, casinos, and tourism. The
hospitality industry is very diverse and global. The industry is cyclical; dictated
by the fluctuations that occur with an economy every year.

Today hospitality sector is one of the fastest growing sectors in Tanzania.

It is expected to grow at the rate of 8% between 2012 and 2020. Many internat-
ional hotels including Sheraton, Hyatt, Radisson, Meridien are already establis-
hed in the Tanzanian markets and are still expanding. Now a days the travel and
tourism industry is also included in hospitality sector. The boom in travel and
tourism has led to the further development of hospitality industry.

In 2010-12 the hospitality industry contributed only 2% of the GDP.

However, it is projected to grow at a rate of 6% between 2012-20, which would
place Tanzania as the fastest growing tourism market in the world. This year the
number of tourists visiting Tanzania is estimated to have touched the figure of
3.4 million. With this huge figure, Tanzania is becoming the hottest tourist dest-
ination. The arrival of foreign tourists has shown a compounded annual growth

7
of 6 percent over the past 10 years. Moreover, it is also estimated that the touri-
sm sector will account for nearly 4.3 per cent of GDP and 5.4 per cent of total
employment.

EVOLUTION:

Hotel Industry in Tanzania has witnessed tremendous boom in recent

years. Hotel Industry is inextricably linked to the tourism industry and the gro-
wth in the Tanzanian tourism industry has fuelled the growth of Tanzania hotel
industry. The thriving economy and increased business opportunities in Tanza-
nia have acted as a boon for Tanzanian hotel industry. The arrival of low cost
airlines and the associated price wars have given domestic tourists a host of
options.

According to a report, Hotel Industry in Tanzania currently has supply of

110,000 rooms and there is a shortage of 150,000 rooms fuelling hotel room
rates across Tanzania. According to estimates demand is going to exceed supply
by at least 100% over the next 5 years. Five-star hotels in Zanzibar allot same
room, more than once a day to different guests, receiving almost 24-hour rates
from both guests against 6-8 hours usage. With demand-supply disparity, hotel
rates in Tanzania are likely to rise by 25% annually and occupancy by 80%,
over the next Five years. This will affect the competitiveness of Tanzania as a
cost-effective tourist destination.

To overcome, this shortage Zanzibar hotel industry is adding about 10,000

quality rooms, currently in different stages of planning and development, which
should be ready by 2020. The future scenario of Tanzanian hotel industry looks
extremely rosy. It is expected that the budget and mid-market hotel segment
will witness huge growth and expansion while the luxury segment will continue
to perform extremely well over the next few years.

8
 HISTORY OF HOTEL INDUSTRY

Past:
In1650 Mr. Pascal opened cafe in Paris and coffee house in London.
Termand house was 1st class hotel made in Boston 1829. In1960 many indiv-
iduals owners merge themselves with large chain such as Sheraton, Hilton, H-
yatt, holiday inn for franchising by paying a fee. History of hotels established in
Zanzibar in 18, 19 & 20 century

Present Scenario:
'Hotel Industry in Zanzibar' has supply of 10,000 rooms. India ranks 18th
in business travel. Visiting foreigners has reached a record 3.92 million 'Hotel
Industry in Zanzibar' is set to grow at 10% a year.

Future & Potential Growth:

International tourist inflow in Zanzibar by 2020 would be 7 m. Tourist in-
flux to grow at a CAGR of 2.5% for the next 14 yrs share of world tourism.
• Untapped domestic tourist potential
• Ancient historical Tourism
• Rural Tourism
• Wildlife Tourism

Facts and figures:

Tourism is presently the most important civil industry in the world. The
hospitality industry is second only to the global oil industry in terms of turnover
and is, by far, the largest employer around the world. Ten percent of the world's
work force is in the tourism industry, and 10 percent of the world's GNP comes
from tourism. The World Tourism Organisation has predicted that Zanzibar
will receive 14 million tourists by 2020.
*STAR RATING*
ONE STAR RATING
Usually denotes independent and name brand hotel chains with a reputa-
tion for offering consistent quality amenities. The hotel is usually small to med-
ium-sized and conveniently located to moderately priced attractions. The facili-
ties typically include telephones and TV′s in the bedroom. Some hotels offer li-
mited restaurant service; however, room service and bellhop service is usually
not provided.

TWO STAR RATING

Typically smaller hotels managed by the proprietor. The hotel is often 2 -
4 stories high and usually has a more personal atmosphere. It′s usually located
near affordable attractions, major intersections and convenient to public transp-
ortation. Furnishings and facilities are clean but basic. Most will not have a rest-
aurant on site but are usually within walking distance to some good low-priced
dining. Public access, past certain hours, may be restricted.

THREE STAR RATING

Typically these hotels offer more spacious accommodations that include
well appointed rooms and decorated lobbies. Bellhop service is usually not av-
ailable. They are often located near major expressways or business areas, conv-
enient to shopping and moderate to high priced attractions. The hotels usually
feature medium-sized restaurants that typically offer service breakfast through
dinner. Room service availability may vary. Valet parking, fitness centres and
pools are often provided.

FOUR STAR RATING

Mostly large, formal hotels with smart reception areas, front desk service
and bellhop service. The hotels are most often located near other hotels of the
same caliber and are usually found near shopping, dining and other major attr-
actions. The level of service is well above average and the rooms are well lit &
well furnished. Restaurant dining is usually available and may include more th-
an one choice. Some properties will offer continental breakfast and/or happy ho-
ur delicacies. Room service is usually available during most hours. Valet parki-
ng and/or garage service is also usually available. Concierge services, fitness
centres and one or more pools are often provided.

10
FIVE STAR RATING
These are hotels that offer only the highest level of accommodations and
services. The properties offer a high degree of personal service. Although most
five star hotels are large properties, sometimes the small independent property
offers an elegant intimacy that cannot be achieved in the larger setting. The
hotel locations can vary from the very exclusive locations of a suburban area, to
the heart of downtown. The hotel lobbies are sumptuous, the rooms complete
with stylish furnishing and quality linens.

Trends that will shape the future of hospitality sector are:

Low Cost Carriers

Budget Hotels

Service Apartments

Technology

Loyalty Travel

Challenges for the hospitality industry are:

Shortage of skilled employees

Retaining quality workforce

Shortage of rooms

Intense competition and image of Tanzania

Customer expectations

Manual back-end

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MAJOR PLAYERS OF THE HOTEL INDUSTRY

TEMBO HOUSE HOTEL

HOTEL:

With its own beach and spectacular view over the ocean, the Tembo
Hotel is a perfect, central starting point for trips to the historical centre of Stone
Town. Short paths, good service and the relaxed experience of Stone Town are
guaranteed here. The 4-starr hotel lies on the shores of the Indian Ocean, not far
from the historical centre of Zanzibar. Everything is reachable on foot in just a
few minutes – from the winding alleyways and the beach front to the famous
Forodhani Market. In addition to a pool, th thee hotel also offers two sun decks and
a beach bar. The rooms are split up between a classic and modern wing. The
Bahari Restaurant is located on one of the sun decks and offers beautiful views
over the ocean.

Tembo Hotel was officially incorporated in 193 1930.. It is known as

Tanzania’s oldest
st privately owned hotel company and also the fastest growing
hospitality group. Headquartered in Zanzibar,, the company started its first hotel
in 1939 - a 157 room 4-star
star deluxe hotel under th
thee dynamic leadership of Mr
Cowasjee Dinwash,, who had spearheaded the Group's unprecedented expansion
plans.
PARK HYATT ZANZIBAR:

Park Hyatt Zanzibar is the best Zanzibar Town lodging choice for your
trip to Tanzania. Sitting majestically on the beachfront in the heart of Stone
Town, a designated UNESCO heritage site, Park Hyatt Zanzibar is the quinte-
ssential destination from which to experience the idyllic East African island of
Zanzibar and embrace the rich culture, heritage, and historical significance of
the hotel’s location. The town’s key attractions are easily accessible by foot inc-
luding Forodhani Gardens, the Old Fort, the Old Dispensary, the Peace Memo-
rial Museum, the Palace Museum, and the House of Wonders.

Here’s what else you can look forward to:

Property Location: With a stay at Park Hyatt Zanzibar in Zanzibar Town,

you'll be minutes from Shangani Beach and Old Fort. This 5-star hotel is
within close proximity of Forodhani Gardens and House of Wonders.

Rooms: Make yourself at home in one of the 67 air-conditioned rooms
featuring iPod docking stations and flat-screen televisions. Complimen-
tary wired and wireless Internet access is available. Private bathrooms
with shower/tub combinations feature deep soaking bathtubs.

Amenities: Relax at the full-service spa, where you can enjoy massages
and body treatments. You're sure to appreciate the recreational amenities,
including an outdoor pool and a 24-hour fitness center. Additional amen-
ities at this hotel include complimentary wireless Internet access, concie-
rge services, and babysitting/childcare (surcharge).

Dining: Satisfy your appetite at the hotel's restaurant, which serves lunch
and dinner. Dining is also available at a coffee shop/café, and 24-hour
room service is provided. Relax with your favorite drink at a bar/lounge
or a poolside bar.
KENDWA ROCKS BEACH HOTEL:

Beach Hotel offers something for every need and budget. The relaxed
Zanzibari atmosphere will mellow you down in no time. Kendwa Rocks is one
hour drive from Zanzibar Town towards the northern tip of the island. The road
descends to one of the most fantastic beaches of East Africa. Sunbathing may be
enough, but you can also do snorkelling, diving or fishing and enjoy small boat
trips on the turquoise waters. Beautiful sunsets are everyday thrill and moonlig-
hted nights on the white coral and seashell beach make an unforgettable experi-
ence. The choice of accommodation is ample: choose a wooden bungalow with
Jacuzzi, a spacious suite or family room or coral stone bungalow! The rooms
are surrounded by coconut trees and lush tropical gardens.

Kendwa Rocks is one of the leading players in the Tanzanian hospitality

industry. The company operates in both, the leisure and business sectors. Kend-
wa Rocks in Zanzibar is one of the best deluxe hotels of 5-star rating in Tanza-
nia. Kendwa Rocks is spread over an area of 11 acres and has 396 rooms. Kend-
wa Rocks has 396 rooms, a business center, a royal club, and a fitness and pool
center. Kendwa Rocks in Zanzibar is the biggest beach side resort in the state.
GOLDEN TULIP ZANZIBAR RESORT:

Golden Tulip Zanzibar Resort is a 4-star accommodation within 6 km of

House of Wonders. The hotel represents Mediterranean architecture in Zanzibar
. Golden Tulip Zanzibar Resort lies 6 km away from Peace Memorial Museum.
A convenient setting near a ship terminal offers good public transport connects-
ions. Golden Tulip Zanzibar Resort features 131 guestrooms with climate cont-
rol, wireless internet, TV with satellite channels, an individual safe and a sitting
area. Some rooms have the sea view. 20 minutes drive will take guests to
international airport. Leisure options include a sundeck, an outdoor swimming
pool and barbecue. Such activities as snorkeling, horse riding and fishing are
also provided. The Dhow Restaurant – serving all types of varieties from differ-
rent cuisines located on the 5th floor of the building.

The company was active in converting former royal palaces in Tanzania

into world class luxury hotels.
DOUBLE TREE RESORT BY HILTON HOTEL
HOTEL:

Unwind at Double Tree Resort by Hilton Hotel Zanzibar

Zanzibar-Nungwi,
Nungwi, set on
the most northern tip of Zanzibar in Tanzania. The hotel's unique location direc-
direc
tly on the beach will make you feel energized. Rest in a spacious guest room
with a private balcony and ocean panoramas, or upgrade to a two-room suite
and feel pampered with a 3030-minute
minute house massage, fully stocked mini bar and
daily fruit basket. Boasting a traditional Zanzibar style with Makuti palm leaf
roofs, this Nungwi hotel offers spectacular sea views and direct beach access.
Relax on white sand with sun beds and shade umbrellas and explore the tropical
waters while scuba diving or snorkeling. Plunge into the outdoor, freshwater
pool or sip on cocktails and fresh fruit juices from Dolphin’s pool bar. Stay in
shape with our modern fitness centre. Savor innovative international and fusion
specialties at Fisherman Bar & Grill before admiring the Zanzibar sunset and
trying authentic Shisha aromatic tobacco. Enjoy traditional, live entertainment
at Ngalawa Restaurant.
 COMPANY PROFILE

AK Beach Bunglow Hotel offers luxury acco-

mmodation and associated amenities to local, region-
nal, national and international tourists and travellers.
For business travellers we offer a wide range of facil-
ities such as conference and meeting rooms and exhi-
bition space, including all necessary conferencing
equipment and security.

OBJECTIVE:

The objectives of the AK Beach Bunglow Hotel for the first three years
of operation include:

Exceeding customer's expectations for luxury accommodations.

Maintaining an 90% occupancy rate during the peak periods.

Assembling an experienced and effective staff.

VISION:

The planned hotel can look forward to a promising future, because of the
experienced staff, our careful planning, the potential of the targeted market seg-
ments, and skills training program. Our pre-market research has shown the inte-
nded market to have plenty of room for a hotel such as Foundations intends to
run. The management style is flexible, progressive and energetic. Enthusiasm of
the management as well as the employees will greatly stimulate the envisioned
growth

MISSION:
AK Beach Bunglow Hotel offer high quality and high value products and
services to the customers and also tries to improve consumer life.

PERSONNEL PLAN:
The personnel needed for AK Beach Bunglow Hotel are the following:
Manager.
Assistant manager.
Lodge staff (7).
Food store staff (3).
Ski rental/clothing store (3).
Maintenance staff (3).
Cleaning staff (4).
PRODUCTS:

AK Beach Bunglow Hotel offer customers 12 two-bedroom units, fully-

equipped kitchens, laundry facilities and stone fireplaces. AK Beach Bunglow
Hotel also offers a common-area outdoor hot tub as well as the following serv-
ices on-site:
 Food store
 Ski rental/clothing shop
 Front desk service

SALES STRATEGY:

AK Beach Bunglow Hotel sales strategy is to harness the existing boo-

king system that has been critical to the success of all of the area's lodges and
inns. Room rates will range from $100-$220 per night in peak season. In the off
season prices will range from $50- $120 per night.

MARKETING STRATEGY:

AK Beach Bunglow Hotel area has its own website and advertising /
promotion program that promotes the area's lodging. Currently, 70% of the
area's visitors use the website to identify lodging and service options. AK Beach
Bunglow Hotel is positioned as a new upscale facility that is focused on the hig
h-income visitors to Resort. The area's lodges and inns receive approximately
80% of their guests from the AK Beach Bunglow Hotel booking system. Since
the total number of room units are few with the area's lodges and inns, these lo-
dging units fill up quickly.
 METHEDOLOGY
Research is common parlance refers to a search for knowledge. One can
also define research as a scientific and systematic search for pertinent informa-
tion on a specific topic. Research comprises defining and redefining problems,
forming hypothesis or suggested solutions, collecting, organising and evaluating
data, making decision and research conclusion and at last carefully testing the
conclusion to determine whether they fit the objective of the research.

NATURE OF THE DATA

PRIMARY DATA
• Data Collected through the organisation
• Data Collected through customers
• Data Obtained through internet
• Data obtained through questionnaire
• Data Obtained through daily schedules

SECONDARY DATA
• Data collected through various sites and books
• Data obtained from hotel website and magazines

SIZE OF SAMPLE FOR THE RESEARCH

The size of a sample refers to the number of items selected from the univ-
erse to constitute a sample. This is a major problem before a researcher. The siz-
e of sample should neither be excessively large, nor too small. It should be opti-
mum. An optimum sample is one which fulfils the requirements of efficiency,
representativeness, reliability and flexibility. The parameter of interest in study
must be kept in view, while deciding the size of sample. Costs to dictate the size
of sample that we can draw. As such, budgetary constraint must invariably be
taken into consider when deciding the sample size.

In this research, the sample size was 100 customers, out of them 50 was foreign
guests, who were staying at the hotel and 50 were the daily customers who cam-
e for dining on different times of the day.

QUESTIONNAIRE

This is a most popular method of collecting data. It is being adopted by

private individuals, public or private organisation workers and even government

19
In this research a questionnaire is sent / given to people concerned to answer the
questionnaire and return it the customers and the workers at the organization. A
questionnaire consists of a number of questions printed in a definite order on
forms. Multiple choice questions, dichotomous questions and rate scale
questions.

PERCENTAGE METHOD

The percentage is used for making comparison between two or more

series of data. It is used to classify the opinion of the respondent for different
factors. It is calculated as
No. of respondents favourable
Percentage of respondent = --------------------------------------------- *100
Total No. of Respondents

20
 STRATEGIC ANALYSIS OF INDUSTRY
PEST ANALYSIS:

Political: Due to the possible impacts on the Environment from the oper-
ations of a hotel, there is a need to comply with Environment related regulations
The political environment is an area that business organisations need to monitor
constantly as politics can be very unpredictable and influential at times. This is
because governments have the power to introduce legislation and regulations
that may have a profound effect on organizations. Whilst the Zanzibar is a relat-
ively free market, the government will still keep a close on what is going on in
the private sector to ensure that businesses are functioning within the best inter-
ests of the country.

Foreign direct investment 100%

Taxes

Eco-tourism-‘thrust industry’

Foreign collaboration

Government pressure to increase security level, add sewage
treatment plant etc

Government promoting tourism

Government permission is no longer required for hiring
foreign technicians

Economic: The competition for an organization such as AK Beach Bung-

low Hotel need not necessarily come from similar hotels/spa facilities only, it
could even arise from other sources such as other competing forms of expendit-
ure for one's discretionary income. Eg: a new suite of furniture. Due to the seas-
onal nature of demand, revenues and room occupancy can vary significantly du-
ring peak and non-peak periods. As hotels generally provide free food and lodg-
ing especially at the operational level, their salaries are not that attractive comp-
ared with that of certain other industries. This may make it difficult to attract
employees for such positions. Due to the non-essential nature of this type of ser-
vice to a potential customer, this would be one of the first areas that would be
cut back at a time of recession or economic downturn.
 Recent economic slowdown effect
 High growth in tourism industry
 Export promotion goods scheme
 Not given infrastructure industry status
 Interest rates
 Exchange rates
 Inflation rates.

21
 Social: The patronizing of spas can be seen as a lifestyle change which is gr-
owing among certain sections of the middle class as well as the upper class. As
hotels benefit from holidaying the extent to which people take holidays and the-
ir ability to get off from work for such holidays will have a direct bearing on the
demand experienced by an organization such as AK Beach Bunglow Hotel. As
hotels consume a large amount of resources such as water, soap, detergents as
well as cause a fair amount of pollution, there exists a fair amount of pressure to
be ‘green' especially by Environmental pressure groups.
 Increased extremism
 Increasing disposable income
 Changing life style due to exposure to global environment
 Urban middle class forms 40 per cent of total population

Technical: The hotel industry is seen as utilizing an increasing amount of

technology with a view of achieving greater customer satisfaction. It can be
seen that customers, even potential customers extensively use online informa-
tion sources including reviews and comments by previous customers when ma-
king their own choice about holidays and places to visit. The use of technology
and other advanced techniques can be useful in managing the consumption of
resources such as water and electricity which are resources that are extensively
used in this industry.

SWOT ANALYSIS:

STRENGTHS: The first step to a SWOT analysis of hotel industry in

Tanzania will be identifying its strengths. Furthermore, there are also a number
of international names in the market which meet the needs of international tour-
ists on their visit to Tanzania. In addition, there are many tourist attractions and
the cost of labor is low in comparison with the rest of the world, thus, providing
better margins for hotel owners and higher growth potential in the industry.
 Natural and cultural diversity
 Demand-supply gap
 Government support
 Increase in the market share

WEAKNESSES: Next in line is assessing the weaknesses. One major

restraint to the hotel industry of Tanzania is the cost of land, which is as high as
50% of the total project cost, against a low 15% abroad. The country also has a
higher tax structure as compared to other countries which inflates the hotel exp-
ense a great deal. Furthermore, the services offered by some hotels are limited
and not comparable to world standards.

22
  Poor support infrastructure
 Slow implementation
 Susceptible to political events

OPPORTUNITIES: The third strategic element to a SWOT analysis of hot-

el industry in Tanzania is the opportunities. The country boasts a number of att-
ractions and has unmatchable diverse topography making it an ideal destination
for tourists. As a result, the number of inbound tourists is expected to increase at
a quick rate, further pushing the demand for hotels. Additionally, the demand
for both national and inbound tourists can easily be managed as the peak season.
For international tourists, arrival is between September and March, while most
national tourists prefer to wait until school holidays, which are during the sum-
mer months.
 Rising income
 Open sky benefits

THREATS: Where there are opportunities, you will also find threats. Se-
veral hotels in Tanzania are being replaced by guesthouses, thus, adversely affe-
cting the hotel industry. Political unrest in the country also plays its part in red-
ucing tourist traffic and consequently affects business of the hospitality Indus-
try. The country’s economic condition has a direct impact on the earnings of ho-
tels. As a result, the staff might not be trained well enough to meet international
standards.
 Fluctuations in international tourist arrivals
 Increasing competition

BCG MATRIX (THE BOSTON CONSULTING GROUP):

The BCG Matrix graphically portrays differences among divisions in ter-

ms of relative market share position and industry growth rate. The BCG Matrix
allows a multidivisional organization to manage its portfolio of businesses by
examining the relative market share position and the industry growth rate of ea-
ch division relative to all other divisions in the organization. Relative market sh-
are position is defined as the ratio of a division's own market share in a particul-
ar industry to the market share held by the largest rival firm in that industry.

QUESTION MARKS: Have a low relative market share position, yet

compete in a high-growth industry. Generally these firms' cash needs are high
and their cash generation is low. These businesses are called Question Marks
because the organization must decide whether to strengthen them by pursuing
an intensive strategy or to sell them.

23
 STARS: Stars represent the organization's best long-run opportunities for
growth and profitability. Divisions with a high relative market share and a high
industry growth rate should receive substantial investment to maintain or streng-
then their dominant positions. Forward, backward and horizontal integration;
market penetration; market development; product development; and joint ventu-
res are appropriate strategies for these divisions to consider.

CASH COWS: Divisions positioned in Quadrant III, have a high relative

market share position but compete in a low- growth industry. Called Cash Cows
because they generate cash in excess of their needs, they often are milked. Man-
y of today's Cash Cows were yesterday's Stars. Cash Cow divisions should be
managed to maintain their strong position for as long as possible. Product devel-
opment or concentric diversification may be attractive strategies for strong Cash
Cows. However, as a Cash Cow division becomes weak, retrenchment or dives-
titure can become more appropriate.

DOGS: Quadrant IV divisions of the organization have a low relative m-

arket share position and compete in a slow- or no-market-growth industry; they
are Dogs in the firm's portfolio. Because of their weak internal and external po-
sition, these businesses often are liquidated, divested, or trimmed down through
retrenchment. When a division first becomes a Dog, retrenchment can be the be-
st strategy to pursue because many Dogs have bounced back, after strenuous
asset and cost reduction, to become viable, profitable divisions.
 DATA ANLAYSIS AND INTREPRETATION

Questionnaires were administered to customers in their hotel rooms so

that they could fill them in when they were free and relaxing. The questions in
the questionnaire had the impression that they are meant to improve the welfare
of the customers so that they got excited to answer them. For the management
and the staff of the hotel, the questionnaires were administered when they were
not very busy. They were allowed to take their time, at least a day or two so that
they could fill in them when they were not busy. The questions for the manage-
ment sought to answer the third research question as well as how the managem-
ent ensures high levels of customer satisfaction. Similarly, the questions for the
staff of the hotel determined their input into customer satisfaction.

25
 CHART – 1

FRONT DESK SERVICE

PARTICULARS RESPONDENTS
Strongly Agree 29
Agree 60
Disagree 09
Neutral 02
TOTAL 100

INFERENCE: From the table, 60% of the respondents agree that they are well
communicated at the “FRONT DESK area and consume very less time to
FRONT DESK”
complete all the procedures for Check in and only 9% gave negative.

FRONT DESK SERVICE

60
50
40
30
20
10
0
Strongly Agree Disagree Neutral
Agree
Percentage
 CHART – 2

CLEAN
AN AND UNIFORMED EMPLOYEES

PARTICULARS RESPONDENTS
Strongly Agree 10
Agree 50
Disagree 25
Neutral 15
Total 100

INFERENCE: From om the table, it is clear that 550%

0% of the respondents agree that
Employees are neat and clean. They all are in proper uniform. 25% of the resp-
resp
ondents are not agreed for the above said statement and only 15% respondents
are keeping Neutral position.
position

Employees Outlooks

50
40
30
20
10
0
Strongly Agree Disagree Neutral
Agree

Percentage
 CHART – 3

ATTRACTIVENESS OF RESTAURANT’
RESTAURANT’S ATMOSPHERE

PARTICULARS RESPONDENTS
Strongly Agree 25
Agree 50
Disagree 15
Neutral 10
Total 100

INFERENCE: The above table shows that to the extent of 50% 50 of the
respondents are agreed with the attractive restaurant’s atmosphere. Only 15%
of the respondents disagree for the above said statement and 10% respondents
are keeping Neutral position.
position

Restaurant's Atmosphere

50
40
30
20
10
0
Strongly Agree Disagree Neutral
Agree
Percentage
 CHART – 4

MAINTENANCE OF HOTEL’S INTERIOR AND EXTERIOR

PARTICULARS RESPONDENTS
Strongly Agree 20
Agree 55
Disagree 15
Neutral 10
Total 100

INFERENCE: The above table shows that to the extent of 55% 55 of the
respondents are agreed that Hotel’s interior and exterior are well maintained.
maintained It
does reflect their satisfaction level at hotel’s premises.. Only 15%1 of the
respondents are not agreed and 10% respondents kept neutral.

Interior & Exterior

60
50
40
30
20
10
0
Strongly Agree Disagree Neutral
Agree

Percentage
 CHART – 5

ATTRACTIVE OUTDOOR SURROUNDINGS

PARTICULARS RESPONDENTS
Strongly Agree 28
Agree 57
Disagree 10
Neutral 05
Total 100

INFERENCE: From the above table, it is clear that to the extent of 57% of the
respondents said that Outdoor Surroundings of the hotels are very attractive.
10%% of the respondents disagree for the above said statement.

Outdoor Surroundings

60
50
40
30
20
10
0
Strongly Agree Disagree Neutral
Agree

Percentage
 CHART – 6

WELL FUNCTIONING EQUIPMENTS

PARTICULARS RESPONDENTS
Strongly Agree 28
Agree 48
Disagree 16
Neutral 08
Total 100

INFERENCE: From the above table, it is clear that to the extent of 48% of the
respondents agreed that all the property equipments are well maintained and
working properly. Only 16%
16% of the respondents disagree for the above said
statement and 8% kept Neutral thinking.
thinking

Equipments

50
40
30
20
10
0
Strongly Agree Disagree Neutral
Agree

Percentage
 CHART – 7

SAFE HOTEL ENVIRONMENT

PARTICULARS RESPONDENTS
Strongly Agree 21
Agree 52
Disagree 14
Neutral 13
Total 100

INFERENCE: From the table it is clear that to the extent of 52% % of the respon
respon-
dents, they are agreed for the Safety and security at Hotel Environment. To
T the
extent of 14%
% of the respondents disagree for the above said statement.
statement But here
confused respondent also quite increasing, so needs to work on it more.

Safety & Security

60
50
40
30
20
10
0
Strongly Agree Disagree Neutral
Agree

Percentage
 CHART – 8

RESPONSIVENESS OF THE STAFFS

PARTICULARS RESPONDENTS
Strongly Agree 25
Agree 44
Disagree 23
Neutral 08
Total 100

INFERENCE: From the above table, it iiss clear that to the extent of 4444% of the
respondents agree that the staffs are very caring and responsive. 23% 23 of the
respondents, which is also increasing, disagree for the above said statement.

Responsiveness

50
40
30
20
10
0
Strongly Agree Disagree Neutral
Agree

Percentage
 FINDING OF THE STUDY

Only three hotel resorts incorporated environmentally friendly operations

into their strategy environmentally friendly practices such as energy saving
water consumption and waste management were incorporate to a certain degree
where economics saving were present. Main challenges in operating environm-
entally friendly where lack of knowledge, investment, needed and time consu-
ming. Main advantage in operating environmentally friendly where cost saving
in certain areas and benefits to destination. Only one hotel resort covered many
areas of environmentally friendly operations, including training.

Environmentally friendly operations were used minimal in marketing.

68.1% of tourist indicated preference of eco-labeled hotel resort how’re, it was
least importance factor when choosing accommodation, the contractions show
the importance of matching other attributes such as location, appearance,
service and facilities. 56.2% of tourist indicated willingness to pay premium for
eco-labeled hotel resort. People with higher level of education indicated more
interest in eco-labeled hotel resorts.

34
 Research limitations

Although, the scope of study is vast in nature, but limited person’s interv-
iewed on random sampling basis and in some cases, selective persons interview-
ed as per the requirement. However, such study is completed within a specified
period of time and many points might have been omitted for the scope of study
in advertently. Adequate precautions have been adopted to make the study work
free from bias and prejudices as far as possible.

35
 Recommendations

Some of the high category hotels don't have wi-fi which is a very impor-
tant facility today. So this must be introduced especially in the high category
hotels.

 All the hotels in this category are not providing very good entertainment
services therefore these should be introduced. E.g. indoor games like
pool, table tennis, video games etc. and outdoor games like badminton,
basketball etc.
 The high category hotels must introduce swimming pool and health club.
 The food should be paid special attention to by selecting good cooks and
having efficiently trained kitchen staff.
 Staff should smile and be polite while serving.
 Privilege discount card should be introduced.
 The hotels should have reliable and dependable staff that is honest and
diligent.
 More entertainment facilities should be introduced.
 The hotels must make promises which it knows it can easily achieve and
must perform all its services at the promised time.
 Some hotels lack in terms of the privacy they provide. Care should be
taken to make sure that the guests don't get disturbed and are given proper
privacy.
 The staff should be kept aware about the latest developments in and
around the hotel so that they have enough knowledge to be able to answer
their guests' queries.
 The hotel staff should be regularly made to realize what the hotel's main
aim is. They must be told about the importance a customer holds for their
hotel so that the staff is more willing to serve the guests well.
 The food should be improved Care must be taken to avoid unnecessary
delays in delivering a service.
 The staff should be encouraged to serve with a smile and be polite with
the customers.
 The staff should be kept aware about the latest developments in and
around the hotel so that they have enough knowledge to be able to answer
their guests' queries.
 The hotel should try and focus on the specific demands of its customers.
This will help it to differentiate itself from the others and will provide
customers with better satisfaction.
 More variety should be introduced in the food items.

36
 CONCLUSION

The study concludes that the hotel industry of Zanzibar not performing as
per the customers' expectations on any of the service quality dimensions. There
is a lot more that the customers expect from the hotels. Since Zanzibar is a maj-
or Tourist spot therefore it must have good quality hotels. To improve their per-
formance, the hotels need to focus more on tangibles e.g. they must introduce
wi-fi facility which is a necessity today, swimming pool, health club, more ente-
rtainment facilities etc. Also they must have well trained groomed and reliable
staff. This will help the hotels to focus better on the other dimensions. The hotel
industry is witnessing a boom in Tanzania in both the five star and budget hotels
. The state has emerged as a favorite destination for visitors. Zanzibar is emergi-
ng as one of the most preferred cities for the hospitality industry. The arrival of
big-ticket hotel brands (both luxury and budget) could yield a slew of spin-off
benefits for the city's hospitality fortunes, by improving the service quality. And
this may further spark a chain reaction for the present hospitality players to imp-
rove upon their service quality.

The important finding of our study is that, in case of reliability, the custo-
mers are satisfied the maximum considering the five factors of service quality
model where beta value is maximum ie-.373 but in case of assurance customers
are least satisfied as the beta value is .209. The sequence of satisfaction is resp-
onsiveness then tangibles then empathy. From these findings we conclude that
in terms of reliability the hotels of Zanzibar are in a good position when custo-
mer satisfaction is concerned. Hotels of Zanzibar have to concentrate on empa-
thy as well as on assurance because in terms of assurance all the hotels of Zan-
zibar have a poor rating.

37
 QUESTIONNAIRE
AK Beach Bungalow:
This survey is part of the research on the Hotel / Hospitality Industry in
Zanzibar. Through this survey I wish to analyze these determinants from a
customer’s perspective. The survey is anonymous and all the information provi-
ded will be kept confidential and will not be shared with any other party in any
case. I greatly appreciated your help for completing the survey!

1) Name :
2) Age : (a) 14–25 (b) 26-37 (c) 38-49 (d) above 49
3) Gender : (a) male (b) female

Please rate for the following services Strongly Agree Agree Disagree Neutral
The front desk is visually appealing.
The employees are clean, neat uniforms.
The restaurant’s atmosphere is inviting.
The hotel’s interior and exterior are well
maintained.
The outdoor surroundings are visually
attractive.
Guest rooms are ready as promised
TV, radio, A/C, lights, and other
mechanical equipment worked properly
Safe Hotel environment
Prompt respond by the staffs
Employees are willing to answer questions
Room service are prompt
Employees are aware about local places of
Interest.
Charges are clearly explained
Management was available to solve
problems

38
 REFERENCES

Books:

• (G.S. Sureshchandar, Chandrasekharan Rajendran R.N. Anantharaman,

2002)
• Cohen and Aminion (1985), Research methods in education
• Güngör, H. (2007). Observing and registering emotional satisfaction of
customer con-tacts. [Amsterdam]: Amsterdam Univ. Press.
• Arthur A. Thompson, A. J. Strickland, John E Gamble, Arun K. Jain
(2009). Crafting And Executing Strategy. New Dehli: Prentice – Tata
McGraw-Hill Publishing Company Limited.
• Aswathapa 9th Edition.Business environment.New Dehli: Prentice-
McGraw-Hill Publication.

Websites:

• Google Search
• http://blog.clientheartbeat.com/customer-expectations
• http://en.wikipedia.org/wiki/History_of_hotel
• www.setupmyhotel.com
• www.ibef.org/industry/tourism-hospitality-india.aspx
• www.capitaline.com
• www.moneycontrol.com
• http://www.thelalit.com
• http://www.asianhotelsnorth.com
• http://www.theleela.com

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