Evaluation of the Zanzibar Interconnector Activity: Findings from the Hotel Study

Evaluation of the Zanzibar Interconnector Activity: Findings from the Hotel Study

Published: Jul 20, 2015
Publisher: Washington, DC: Mathematica Policy Research
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Associated Project

Tanzania Energy-Sector Impact Evaluation

Time frame: 2008-2017

Prepared for:

Millennium Challenge Corporation

Authors

Nicholas Redel

Arif Mamun

Mathematica is conducting evaluations of the energy sector project in Tanzania funded by MCC. As part of the evaluation, we examined how the installation of a new 100-megawatt submarine cable connecting Zanzibar’s Unguja Island influenced outcomes for hotels, an important industry on Unguja Island. Using data from pre- and post-cable hotel surveys, this report assesses how the installation of the new cable influenced outcomes for the hotel industry and what the hotel owners’ and managers’ perceptions are in this regard. The analysis of quantitative and qualitative data indicates that the cable activity had a positive influence on the quality of the electricity. Hotel staff indicated that hotels’ nonelectric energy use decreased, but hotels spent more on electricity in the post-cable period. There was no discernible change in average hotel revenue, and hotel staff pointed to increased competition in the hotel sector. We also found suggestive evidence of greater guest satisfaction between the pre- and post-cable period.

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