Zanzibar runs on two currencies at once, informally: the Tanzanian shilling for local life, and US dollars for anything built around tourism — park fees, many tour operators, and a fair number of hotels price directly in dollars. Carrying both, in the right proportions, saves you from losing money on bad exchange rates in either direction.
The Currency
The official currency is the Tanzanian shilling (TZS), used identically on Zanzibar and the mainland. The exchange rate has run roughly 2,250–2,430 TZS per US dollar in recent years — check a live rate at xe.com or oanda.com before you travel rather than relying on a fixed number, since it does move. Banknotes come in 500, 1,000, 2,000, 5,000, and 10,000 TZS denominations; coins in smaller amounts.
Cash: What to Bring and How to Exchange It
Bring US dollars in good condition — relatively new, crisp, unmarked bills, ideally from 2009 or later. Older or visibly worn notes are frequently refused by banks, exchange bureaus, and hotels alike, which catches a lot of travelers off guard the first time it happens.
Exchange money at banks or official exchange bureaus, not on the street — street exchanges are a common source of shortchanging and counterfeit bills, especially for larger sums. Bank rates and bureau rates can differ, so it’s worth comparing a couple of options rather than using the first one you see, particularly at the airport, where rates tend to run worse than in town. For small amounts, some shops and restaurants will exchange dollars directly as a convenience.
Avoid converting large sums into shillings at once: non-residents generally can’t take Tanzanian shillings out of the country, and converting them back to dollars before you leave can cost you up to 10% in the exchange. Convert only what you expect to actually spend in shillings. If you’re carrying more than $10,000 in cash across the border in either direction, it needs to be declared.
ATMs
ATMs are reliable in Stone Town and at the airport, with Barclays commonly recommended for Zanzibar specifically — but they’re essentially nonexistent on the beaches and nonexistent on Pemba and Mafia islands, so withdraw what you need before heading to a beach resort area. ATMs dispense only shillings, never dollars. Withdrawals are typically capped around 400,000 TZS per transaction, though there’s usually no limit on the number of withdrawals you can make in a day — just budget for multiple trips to the machine if you need a larger amount.
Credit and Debit Cards
Card payments are accepted at larger hotels, resorts, and some restaurants, but carry a standard surcharge — often around 3.5% or more depending on your card issuer — so cash is still the more economical choice for day-to-day spending, especially at smaller guesthouses, local restaurants, and markets. Notify your bank of your travel dates and destination before you leave, since an unannounced charge from Tanzania is a common trigger for a card freeze.
A reasonable split: keep roughly a quarter of your trip budget in US dollar cash as a baseline, use cards where accepted for larger payments like hotel bills, and carry smaller shilling amounts for daily spending — taxis, markets, and casual meals.
Daily Budget
Zanzibar generally costs more than mainland Tanzania, largely because of excursions, drinks, and restaurant prices aimed at tourists — a realistic daily budget covering accommodation, food, and activities runs roughly $150–$300 per person depending on your style of travel. Prices in tourist-facing restaurants and resorts run close to Western levels; it’s local markets, street food, and guesthouse-level accommodation where the real savings are.
Tipping
Tipping isn’t legally mandatory but is a normal part of daily transactions here. At restaurants, 10% is a reasonable tip in sit-down establishments; it’s less expected at very casual street food stalls, though a small tip is still appreciated. Hotel porters and luggage help typically get $1–$3. Tour and safari guides are commonly tipped around $8–$10 per day. Tips can be given in either dollars or shillings — small bills are easier for everyone involved, which is another reason to keep a stock of smaller denominations on hand.
FAQ
What currency should I bring to Zanzibar — dollars or shillings?
Both, in a mix — US dollars for larger payments and tours, Tanzanian shillings for daily local spending. Keep roughly a quarter of your budget in dollar cash as a baseline.
Do ATMs work in Zanzibar?
Yes, in Stone Town and at the airport, but they’re scarce on the beaches and nonexistent on Pemba and Mafia — withdraw what you need before heading to a beach resort.
Why do some places refuse my US dollar bills?
Older or worn notes are commonly rejected over counterfeiting concerns. Bring relatively new bills, ideally 2009 or later, in clean, undamaged condition.
Are credit cards widely accepted in Zanzibar?
At larger hotels and resorts, yes, usually with a surcharge around 3.5%. Smaller guesthouses, local restaurants, and markets are largely cash-only.
How much should I budget per day in Zanzibar?
Roughly $150–$300 per person per day covering accommodation, food, and activities, though it varies widely depending on whether you’re staying in guesthouses or resorts.