The United Arab Emirates (UAE) is poised to revolutionize its hospitality and tourism industry with a groundbreaking move to slash hotel and restaurant fees. In an effort to supercharge the sector and attract a surge in visitors, the emirate of Abu Dhabi has unveiled a comprehensive plan to reduce fees collected from hotels and restaurants.
The Department of Culture and Tourism – Abu Dhabi (DCT – Abu Dhabi) is spearheading this bold initiative, which is set to take effect from September 1, 2023.
Changes to government fees applied to hotel establishments in the emirate will take effect from 1 September 2023, part of ongoing efforts to further stimulate and enhance the investment environment for Abu Dhabi’s hospitality sector. pic.twitter.com/WbPdVd79ew
— Department of Culture and Tourism – Abu Dhabi (@dctabudhabi) August 11, 2023
In line with directives from the Abu Dhabi Executive Council, the fee restructuring aims to galvanize both tourists and residents to explore and enjoy the diverse hospitality offerings that the emirate has to offer.
Among the pivotal changes are a reduction in the tourism fee charged to guests, diminishing from six percent to four percent.
Furthermore, a notable stride towards affordability is marked by the elimination of a municipality fee of AED 15 per room per night.
Hotel restaurants are also set to become more attractive as both the six percent tourism fee and the four percent municipality fee applied to them will be abolished.
However, it is important to note that a municipality fee equivalent to four percent of the invoice value will persist, ensuring a sustainable balance between revenue and growth.
With this transformative amendment, DCT – Abu Dhabi aims to bolster the emirate’s reputation as a premier global destination for leisure and tourism.
