Is Zanzibar over-developed for tourism?

In our opinion it is not, yet, overdeveloped and most of the island is about local people going about their daily business. A couple of streets in Stone Town are predominantly for tourists selling local artefacts, paintings, wood carvings, cotton-wear, etc. There are no high density, high-rise hotels with the majority of hotels blending well with the local environment. There are some largish hotels catering predominantly for “package” holidays from Continental countries.