Russian director Alexander Sokurov's take on the German legend Faust has won the film a Golden Lion at the Venice Film Festival.
The story explores the corrupting nature of power as Faust sells his soul to the devil.
German-born Irish actor Michael Fassbender won the best actor for playing a sex addict in British director Steve McQueen's Shame.
The best actress award went to Hong Kong's Deanie Yip in A Simple Life.
Fassbender also starred in another Venice competition film - David Cronenberg's A Dangerous Method - in which he plays psychoanalyst Carl Jung.
At a news conference following the award ceremony, Sokurov appealed for governments to continue funding the arts.
"Culture is not a luxury! It is the basis for the development of the society," he said.
In the hours after the sinking, the government strongly discouraged journalists from reporting the event and refused to give journalists information.
"We appeal for calm to the public. The government is doing its best it can to handle the situation. There is no need to panic," said Mohammed Aboud Mohammed, the minister for state in the vice president's office.
In 2006, another ship capsized in Zanzibar, claiming hundreds of lives. But the angry residents of Stone Town who spoke to the AP said the government still did not invest in better ferries or boats capable of mounting a rescue.
It was unclear if any foreigners were aboard.
Britain's Minister for Africa Henry Bellingham extended his "deepest sympathy" on behalf of the British government to those affected.
"I was deeply saddened by news of the ferry disaster off Tanzania earlier today which claimed the lives of so many people," he said in a statement. " ... At this difficult time, our thoughts are with the people of Tanzania as they come to terms with this terrible tragedy."
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