Dubai to address void of budget hotels

Dubai to address void of budget hotels

Industry to be incentivized to develop four and three star hotels

Industry to be incentivized to develop four and three star hotels

New incentive scheme for budget hotels in UAE
New incentive scheme for budget hotels in UAE

In an effort to boost the development of three and four star category hotels, the DTCM and Dubai Municipality have rolled out an incentive scheme.

The financial incentive will see eligible hotels granted a concession on the standard 10% municipality fee which is levied on the room rate for each night of occupancy. The incentive scheme is a result of collaboration between government partners DTCM and Dubai Municipality and part of the Department of Tourism and Commerce Marketing’s (DTCM) strategy to achieve Dubai’s Tourism Vision for 2020.

The initiative is also designed to incentivize hotel owners to fasten their construction timelines, thereby developing more three and four star hotel rooms in Dubai. The strategy was approved by His Highness Sheikh Mohammed bin Rashid Al Maktoum, vice-president and prime minister of the UAE and Ruler of Dubai in May.

HE Helal Saeed Almarri, director-general of DTCM
HE Helal Saeed Almarri, director-general of DTCM

The announcement was made by HE Helal Saeed Almarri, director-general of DTCM. “In order to achieve our headline objective of 20 million visitors per year by 2020, we need to both increase the overall stock of hotel rooms in Dubai and widen range of options for visitors. It is vital that we continue to engineer the growth of this range. The equation is simple – the sooner the property opens, the bigger financial incentive the hotel owner will receive.”

Investors in new hotels will be granted a waiver on the fee for a period of four years from the date the permit to construct is granted and provided that this date is between 1 October 2013 and 31 December 2017.

Gary Marshall
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Gary Marshall
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Hotel & Spa