Fee reductions and Airbnb give boost to tourism sector
UAE tourism has received a double boost, with Airbnb rates soaring and recent hotel fee reductions already bringing benefits to the industry.
Airbnb revenue increased 421 per cent in Dubai between August 2015 and August last year, said a report by property company Chestertons Mena.
Airbnb provides short-term accommodation to travellers.
Bloomberg said Airbnb’s presence in Dubai continued to grow, despite it having among the most expensive rents in the world. The emirate was fifth on a list of the most expensive rentals, at an average rate of $185 (Dh680) a night, with Miami topping the list at an average rate of $205, followed by Boston and Reykjavik.
It comes as hotels and restaurants in the emirate and in Abu Dhabi were helped by the announcement of a reduction in Government fees for accommodation and dining.
The rate was cut from 10 per cent to 7 per cent in Dubai from the start of this month. In Abu Dhabi, the 6 per cent tourism fee applied to hotel rooms and outlets was reduced to 3.5 per cent, the municipality fee from 4 per cent to 2 per cent and the hotel fee for each room from Dh15 to Dh10.
Olivier Harnisch, chief executive of Emaar Hospitality Group, was optimistic about the effect of the reduced fees.
“The revision to the municipality fees has had a positive effect for the industry as it brings added value to customers and guests at our hotels and our restaurants,” Mr Harnisch said.
“With tourism being one of the key drivers of the economy, the introduction of business-friendly initiatives such as this will bolster the sector.
“Coming as it is in summer, the move will benefit the industry across the board.”
David Allan, general manager of the Radisson Blu Hotel Dubai Waterfront, said it was too early to measure the effect of the lower fees but the reduction could only help hotels in Dubai during the summer.
“I have noticed a very slight increase in the number of longer-term stays,” Mr Allan said.
“However, we would expect growth as we are coming out of Ramadan and there has been a softening of the prices because it is summer.”
He said there had also been a noticeable increase in visitors from China.
Naveen Advani, manager at mid-market hotel Rove Downtown, said the reduction of the municipality fee could only help to drum up business.
“In the mid-market segment we see that our guests prefer to enjoy experiences outside the hotel, so this measure helps them to save on accommodation and be able to do more during their stay,” Mr Advani said.
“The reduction increases spending power by adding value and allowing guests to explore more of what the UAE has to offer.”
Rudi Jagersbacher, Hilton president for the Mena and Turkey regions, agreed that it was still a little too early to measure the effect of the reduced fees but said they could only be welcomed.
“We expect this positive decision to further encourage travellers to enjoy the unique destination of Dubai,” Mr Jagersbacher said.
“The commitment and vision of the Government to develop world-class tourism in the emirate gives us great confidence in the market looking forward.”