Industry hails cut in municipality fees

dubai — The recent announcement of the plans to reduce municipality fees at restaurants and hotels in Dubai will bring some much needed relief to the hospitality industry in the emirate, experts have said.

The news was met with approval from several hospitality experts, who said that it was a welcome announcement which will continue to support Dubai’s growing tourism and hospitality sectors. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, on Monday announced that the municipality fee on sales at hotels and restaurants will be cut from 10 per cent to seven per cent, in order reinforce Dubai’s position as a leading touristfriendly destination. “It is very

The reduction in fees will positively impact all our market segments including leisure and corporate Walid Al Awa, GM, Tamani Marina Hotel & Hotel Apartment

positive news that this decision has been taken; we have been witnessing a very challenging hotel market for some time now, and given that the industry has the five per cent value added tax (VAT), Tourism Dirham, and a municipality fee, this relief will certainly provide the industry some support,” Glenn Nobbs, GM at Copthorne Hotel Dubai told Khaleej Times.

He further noted that since the news has just been made public, it is too soon to speculate on how it will affect the hotel’s revenue and performance. “We are looking forward to the official commencement date, however, there is no doubt that the news is positively received and we hope that with the reduced fee, we will see an uplift in business,” he said.

“I think that combined with other recent news, such as a halt on increasing school fees, we should firstly see some stimulated business locally feeding back into the F&B outlets; and secondly, with the reduction in fees being passed onto clients, it should make Dubai’s price point more attractive than it already is.”

Similarly, Walid Al Awa, GM at Tamani Marina Hotel & Hotel Apartment, said that the reduction in fees was an excellent decision that will support the tourism sector this year. “The reduction in fees will positively impact all our market segments including leisure and corporate, and will also increase demand for the current situation,” he said.

Habib Khan, general manager at Arabian Courtyard Hotel & Spa, highlighted that hotels across the emirate had been facing some challenging conditions.

“Under the current business circumstances, it is indeed appreciated, and it provides a little relief to the hotel owners and operators, but it does not really improve the working condition because there are various factors hammering the industry,” he said.

He further noted that the announcement will help the hotel industry become more sustainable, but that there would be no “remarkable improvement” — rohma@khaleejtimes.com