The group on Wednesday (August 1) announced the acquisition of the Dream of Zanzibar hotel with immediate effect.

All existing bookings will be honoured before the hotel is reposition as a Tui Blue property for winter 2019/20.

The move marks Tui Blue’s first foray into long haul after establishing bases in Turkey, Portugal, Spain and Croatia.

Tui will open another hotel on the island this winter, the Riu Palace Zanzibar.

“We are increasingly looking for holiday destinations facilitating profitable year-round operation due to their consistently warm climate,” said Tui Blue managing director Artur Gerber.

“The Dream of Zanzibar hotel already features good occupancy rate and high customer satisfaction levels. The destination also features a wide range of cultural influences and excursion options.”

Besides its beaches, Tui says the Indian Ocean destination offer historical excursions such as a visit to Stone Town, the old part of Zanzibar City - a UNESCO world heritage site.