Report
Published:
Trust and taxation in Zanzibar’s tourism sector
Written by
Viljar Haavik
Research Fellow
Kristian Lefdal
Former employee
Andreas Lind Kroknes
Former employee
Morten Bøås
Research Professor
Ed.
Summary:
This report examines how trust shapes tax compliance in Zanzibar’s vital tourism sector, based on a survey of 316 tour operators. While most operators demonstrate a strong sense of civic duty and a high willingness to pay taxes, trust in tax authorities remains moderate. The findings highlight that compliance depends not only on enforcement, but also on clarity, fairness, and reciprocity as businesses are more likely to trust tax authorities when rules are easy to understand and when tax payments translate into visible public benefits.
At the same time, the report shows that administrative complexity, unclear procedures, and unpredictable fee changes continue to challenge tour operators, with some willing to make use of informal coping strategies despite prevailing norms in favour of compliance. It concludes that improving communication, simplifying the tax system, and strengthening the perceived link between taxes and public services could play a key role in enhancing both trust and revenue collection in Zanzibar’s most important industry.
At the same time, the report shows that administrative complexity, unclear procedures, and unpredictable fee changes continue to challenge tour operators, with some willing to make use of informal coping strategies despite prevailing norms in favour of compliance. It concludes that improving communication, simplifying the tax system, and strengthening the perceived link between taxes and public services could play a key role in enhancing both trust and revenue collection in Zanzibar’s most important industry.
- Published year: 2026
- Publisher: NUPI
- Language: English
- Journal: NUPI Report