Dubai reveals plans for holiday home regulation

DTCM states move to benefit hotels with increased F&B revenues

DTCM is to create two new classification standards for Dubai holiday homes.
DTCM is to create two new classification standards for Dubai holiday homes.

Dubai's Department of Tourism and Commerce Marketing has revealed its plans behind the move to set out regulations for the creation of a holiday homes market in the emirate.

Earlier this week, Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as the ruler of Dubai, issued the decree for regulation in a move that aims to contribute to the growth of the tourism industry by broadening the range of accommodation available to visitors.

Speaking exclusively to Hotelier Middle East following the announcement, DTCM’s CEO of Strategy and Tourism Sector Development Dr Ahmad Belhoul said: “In a number of other countries around the world, the holiday homes market is a segment of the tourism industry with this option particularly popular with families.”

“His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai has stated his intention for the UAE to become the world’s number one family destination – by working with other government departments such as Dubai Legal Department and Dubai Municipality, DTCM will develop the regulation to enable the growth of this emerging segment and broaden the range of accommodation options for visitors,” he added.

The decree dictates that Dubai's Department of Tourism and Commerce Marketing (DTCM) will be responsible for the granting of licenses to homeowners who intend to rent out a furnished residential property on a daily, weekly or monthly basis, according to a statement issued by The Government of Dubai Media Office.

The decree dictates that DTCM will conduct inspections of the properties to ensure they meet the required standards; and will create a database of all licensed properties in Dubai.

Two new classification standards will be added to the existing Hotel Classification framework, with holiday homes rated as either Standard or Deluxe.

“A number of properties in Dubai are currently used as holiday homes and by regulating the market, we will be bringing this into line with the regulation of the hotel sector, including adding two new categories to the hotel classification framework – ‘Holiday Home – Standard’ and ‘Holiday Home – Deluxe’. This will provide the visitor with the confidence that the property they are booking is of a certain quality, has the appropriate insurances and is managed by a qualified party,” said Belhoul.

“It is a niche segment and in fact will likely benefit hotels in terms of the increased food, beverage and entertainment that will result from the increase in visitors that the holiday homes market will create,” he added.

Belhoul also revealed that the latest figures for Dubai’s hotel sector, with average occupancies so far in 2013 currently at 78.6% for hotel rooms and 81% for hotel apartments.

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