Photos Courtesy of Four Points by Sheraton Bur Dubai
In an effort to hasten the completion of three- and four-star properties in Dubai, the government has offered financial motivation to the hotels’ investors. It was announced in September that qualified hotels will be able to forgo the usual 10 percent Municipality Fee collected on the room rate each night they are occupied.
The hope is that owners will work to push up their construction schedule so more mid-range hotels will be made available to accommodate the country’s tourism goal of 20 million annual visitors by 2020, doubling 2012's 10 million visitors. The Municipality Fee will be waived for new hotel investors for four years, from the date the construction permit is applied from October 1, 2013 to December 31, 2017.
"A number of hotel properties are either under construction or in the planning stages in Dubai and, under the directive of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, this incentive has been designed to bring those properties to market sooner,” said His Excellency Helal Saeed Almarri, Director General of Department of Tourism and Commerce Marketing (DTCM).
“While our Tourism Vision has an end date of 2020, our strategy is focused on continual growth year-on-year, and we want to see the destination offer noticeably broaden every year. The equation is simple – the sooner the property opens, the bigger financial incentive the hotel owner will receive."