Lower municipality fees to benefit hotels
Move to discount fees 30% aimed at spurring Dubai’s tourism and hospitality sectors
Fine dining, hotel stays, and all other hotel services will be cheaper in Dubai from next month.
Dubai Municipality has confirmed to Gulf News that it will implement the government’s decision to cut 30 per cent of municipality fee applicable in hotels and certain other hospitality firms from July 1.
Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, on Monday announced the reduction of the municipal fee from 10 per cent to seven per cent to enhance competitiveness and encourage investment in the hotel and tourism sector.
Dubai Municipality’s General Revenue Department has confirmed that the fee is applicable to the services offered in around 900 establishments including hotels, hotel apartments and restaurants with permits to sell alcohol.
Officials sought to rebut reports that claimed the rule will impact all restaurant and hotel establishments in Dubai.
“This municipality fee is applicable only to all the operations and services in hotels, hotel apartments and restaurants that are allowed to sell alcohol,” said a senior official.
In hotels, he said that the fee is applicable to everything including room facilities, food and beverages, spa, gym, and swimming pool.
Circular issued
Last week, the Hotel Establishment Revenue Section of the municipality issued a circular to all the establishments paying municipality fees to implement the new fee from July 1. They need to change the percentage of the municipality bill from 10 per cent to seven per cent and also configure their billing system accordingly.
Officials said violations in applying the instructions will attract fines. Inspectors will visit the premises of these establishments to ensure they have correctly implemented the new billing system.
The UAE federal government announced on February 28 a threeyear freeze in government fees, saying the move was intended to attract more foreign investments, promote economic stability and support the industrial and commercial sectors.
A few days later, on March 4, Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Dubai Executive Council, announced a threeyear freeze on Dubai government fees. Shaikh Hamdan said the move was aimed at promoting Dubai’s economic competitiveness and boosting investments in the emirate.