In the past it was mostly known as a dhow boatyard and fishing village. Until the 1990s, the local population was opposed to tourism. Nungwi's beach is one of the last in the area to host hotels and other touristic structures, but has however, in recent years emerged as the most visited tourist destination in Zanzibar. Between 2008 and 2013, the number of hotel rooms has increased by 129 percent to about 1,000 rooms. The recent increase in tourism has been due to its coast and beaches lined with palm, mangrove, and casuarina trees, as well as the good snorkeling and scuba diving. The main beach of Nungwi is nicknamed "Jambo Square". A small aquarium with sea turtles has also recently been created in the village. Besides tourism and fishing, agriculture constitutes a smaller portion of the economic activity. Farmers cultivate lentils, corn, beans, and cassava.
