Shrugging off ‘Tourism Dirham’
The Dubai government has introduced the 'Tourism Dirham' tax from March 31, 2014. It is a minimal charge to be applied to guests staying in all genres and rating of holiday accommodation including hotels, hotel apartments, guesthouses and holiday homes.
T his minimal charge will vary between Dh7 to Dh20 per room, per night, depending on the hotel category and rating. The move is based on global benchmarking and funds raised will
support the international promotion and marketing of the Emirate and drive growth of its tourism and trade industries. The measure will help strengthen Dubai’s position as a leading tourist destination, bringing the Emirate in line with international industry standards.
Seema Pande, Group Director of Sales and Marketing, The Address
Hotels and Resorts, said that, “Though, Dubai is a short- haul destination, just two and a half to three hours away, India has only discovered Dubai truly in the last few years. Tourism Dirham is something that has been implemented there and it is something we have to embrace. I do not see the demand going down because of that. The demand is very much there for Dubai.” Spencer H. Wadama, General Manager, The Address Dubai Marina, said that, “Tourism Dirham was initiated by the Government. We hope that it does not affect the inbound tourism to Dubai. I think there is enough value of Dubai for the Indian market. The Indian community is very large in Dubai specifically and we hope as a result of the tax people do not shy away.”
Vincent Mercurio, General Manager, The
Address Dubai Mall, said, “I think taxes are inevitable in life. It has happened and it is going to support our market. I think it is kind of minimal and exists in other countries as well. There will be an impact but it will slowly go behind us and people will understand.” Michael Sorgenfrey, General Manager, The Palace Downtown Dubai, said, “I do not think that the tax is going to impact tourism at all. If you go to Germany, where I am from or if you go to Austria or Switzerland, you always pay a tax. Even when you drive on the highways you pay a tax. Bearing in mind, what all is happening internationally, It is only 20 Dirham or 4 Euros and knowing what you will spend for the family in Dubai it is not much.”