Destinations

Dubai Institutes Room Tax to Fund New Tourism Marketing Organization

Feb 04, 2014 3:00 am

Skift Take

We’ve always found it odd that hotels and rental car companies impose fees and localities institute taxes to fund tourism promotion efforts when the people paying them have clearly already got the message about tourism.

— Jason Clampet

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Ahmed Jadallah  / Reuters

United Arab Emirates' Prime Minister and Ruler of Dubai Sheikh Mohammed bin Rashid al-Maktoum (front, 2nd R) walks with EADS Chief Executive Tom Enders at the Dubai Airshow November 17, 2013. Ahmed Jadallah / Reuters


From March 31, hotel guests will have to pay an additional amount between AED7 to 20 per room per night as “Tourism Dirham.” This will be imposed on guests staying at hotels and hotel apartments in Dubai.

The move is part of the initiative announced by DTCM to establish the Dubai Corporation for Tourism and Commerce Marketing (DCTCM). Sources added that the new move will help Dubai’s tourism sector grow.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, crown prince of Dubai and chairman of the Executive Council, has issued the council’s resolution No. 2 of 2014, regarding the introduction of the Tourism Dirham.

According to the resolution, the Tourism Dirham 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. 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. This minimal charge will vary between AED7 to 20 per room, per night, dependant on the hotel category and rating.

The measure will help strengthen Dubai’s position as a leading tourist destination, bringing Dubai in line with international industry standards. Such tourism fees are charged in several leading tourist destinations around the world.

Helal Saeed Almarri, director general of Dubai’s Department of Tourism and Commerce Marketing, commented: “The introduction of the Tourism Dirham will support Dubai Corporation for Tourism and Commerce Marketing, helping to ensure our continued competitiveness on the global stage, which will be reflected positively on the growth of two of our economic pillars — trade and tourism.”

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