Lower municipality fees to benefit Dubai hotels
Dubai: 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 municipal fee from 10 per cent to seven per cent to enhance competitiveness and encourage investment in the hotel and tourism sector in the emirate.
Dubai Municipality’s General Revenue Department has confirmed that the fee is applicable for 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 on all the operations and services in hotels, hotel apartments and restaurants that are allowed to sell alcohol,” said a senior official.
In hotels, he clarified that the fee is applicable to everything including room facilities, food and beverages, spa, gym, swimming pool etc.
Guests, whether they are tourists or residents, using any of these services will soon pay lesser municipality fee.
The move is expected to attract more guests and boost business in the tourism and hospitality sectors.
Last week, the Hotel Establishment Revenue Section of the municipality issued a circular to all the establishments paying municipality fee to implement the new fee from July 1.
They need to change the percentage of municipality bill from 10 per cent to seven per cent and also configure their billing system accordingly.
Officials said violation in applying the instructions to reduce the fee will attract fines. Inspectors will visit the premises of these establishments to ensure they have correctly implemented the new billing system.