Dubai to waive change-of-use charges for hotels

More incentives announced to grow mid-range hotel market ahead of 2020

The Dubai government has announced a expansion of the exemption from the 10 percent Dubai Municipality fee, from the previously announced four years, to five years for three to four star hotels which begin operating before June 2017
The Dubai government has announced a expansion of the exemption from the 10 percent Dubai Municipality fee, from the previously announced four years, to five years for three to four star hotels which begin operating before June 2017

The Dubai government has announced a range of incentives for the three and four star hotel market which includes the allocation of government land at favourable rates and an exemption from change-of-use charges.

There will also be an expansion of the exemption from the 10 percent Dubai Municipality fee, from the previously announced four years, to five years for three to four star hotels which begin operating before June 2017. A special committee will also be established to review the re-zoning of plots for new hotels.

The Ruler of Dubai, UAE Vice President and Prime Minister, His Highness Sheikh Mohammed bin Rashid Al Maktoum, issued the series of directives which have been designed to enhance and streamline hotel investment and development in the emirate.

Speaking after the announcement, His Excellency Helal Saeed Almarri, director general of DTCM said: “The directives by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President and Prime Minister and Ruler of Dubai, once again demonstrate his vision and his unwavering commitment to identifying and addressing any and all challenges to growth, to ensure Dubai’s continued success and prosperity.”

“Collaboration and consultation between the public and private sector is essential if we are to ensure delivery of the infrastructure, accommodation, events and attractions needed to meet not only the current growth of the tourism sector but the ambitious plan we have for future growth. H.H. Sheikh Mohammed’s directives offer new and exciting opportunities for hotel investors. They will act as a stimulus to the sector and help to broaden our current accommodation offering, particularly within the three and four star segment, which is needed to meet the targets outlined in the Dubai Tourism Vision for 2020.”

The directives were made in response to recommendations raised by Dubai’s private sector developers during a consultation workshop organised and hosted by Dubai’s Department of Tourism and Commerce Marketing (DTCM) and Dubai Municipality and attended by representatives of key investors in the hospitality sector including Al Habtoor Group, Al Futtaim Group, Al Ghurair Group, Rotana Group, Dubai Holding and Emaar.

The workshop, held at The Address, Dubai Mall on January 16, was designed to discuss the Tourism Vision for 2020, including the recent positive growth in the hospitality sector in terms of visitor numbers and hotel openings; to identify barriers-to-entry currently being faced by hotel investors; and to find solutions to further stimulate the sector, particularly in the three and four star segment, as the Emirate prepares to welcome 20 million annual visitors by 2020.

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