Three stretches of coast anchor the luxury market, and they feel different. The north tip, around Nungwi and Kendwa, holds the most polished beachfront villas and the only swimmable beaches at any tide, because the east coast empties out at low water. This is the heart of the high-end rental market and the most expensive belt over Christmas.
The east coast, around Matemwe, Pingwe, and the Michamvi peninsula, runs quieter and wider, with long white sand, the tidal flat at low water, and bigger lots back from a calmer scene. The rates sit a notch below Nungwi for the same house size, the trade being the tide and the drive. The west and the south, around Stone Town and the Fumba side, hold fewer luxury villas and trade the beach for the old-town culture and the sunset side of the island.
VAT and the infrastructure tax
Zanzibar applies a 15 percent VAT on accommodation, administered by the Zanzibar Revenue Authority, separate from the 18 percent mainland Tanzania rate. On a $30,000 high-season week the VAT line is $4,500 where the operator charges it. A villa let directly by a private owner may sit outside VAT, with the tax folded into the income rather than added to the guest invoice, so confirm which way the rate is quoted.
On top of the rate, an infrastructure tax of about $4 to $5 per person per night applies to higher-rated accommodation, per the Zanzibar Revenue Authority schedule, and many managed villas also collect a Zanzibar hotel levy. None of these is large against the rate, but they are real, and a staffed villa will add them at checkout rather than show them in the headline. Ask for the all-in figure before you commit.
Staff and service
At the luxury end the villa comes staffed, with a private chef, a housekeeper, a butler or house manager, and a night guard folded into the weekly rate. You pay for the food on top, typically billed at cost plus a small margin, and a gratuity for the team at the end of the stay is the local norm. This is one of the few markets where a full kitchen brigade is standard rather than an add-on.
Transfers and the boat
Budget an airport transfer of $80 to $200 each way depending on the coast, and on the north tip a private dhow or speedboat day is the common splurge at a few hundred dollars. A car with a driver runs roughly $120 to $200 per day, worth it given the road condition and the distance to Stone Town.
Security deposit
Plan on a refundable deposit of $2,000 to $20,000 depending on the value of the estate, held by card or transfer and returned within two to four weeks of checkout. Christmas lets carry the steepest deposits and the strictest cancellation terms.