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Wondering if anybody has any opinions on staying in Paje vs Pongwe. I have done some research and Nungwi seems a little too busy/crowded for what I am looking for. Any recs for budget accommodations?

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Paje it's better , because Pongwe is too far away from social /community services , and it has not many hotels than Paje . So for me Poje is 1st Option !!!

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Of the south-east coast places, Paje is the busiest and most touristy (but not as "bad" as Nungwi), including souvenir stalls on the beach and regular beach parties. The kite-surfing scene has taken off big time there. Pongwe is a lot quieter.

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