DUBAI’S hotel industry is set to expand the three- and four-star hotel sector, given the government’s granting of financial incentive from early this month to develop more mid-range hotels in the emirate.
Eligible hotels will be granted a concession on the standard 10 per cent Municipality Fee levied on the room rate for each night of occupancy, while new hotels will be granted a waiver for a period of four years from the date the permit to construct is granted, and provided that this date is between October 1, 2013 and December 31, 2017.
The incentive is part of the strategy to achieve Dubai’s Tourism Vision for 2020, which aims to attract 20 million annual visitors by 2020.
Last year, Dubai received 10 million visitors, which the destination expects will double by 2020. In 1H2013, it received 5.5 million visitors, an 11.1 per cent increase year-on-year, while hotels’ revenue rose 18.6 per cent to AED11.6 billion (US$3.2 million).
