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Taxes at tourist facilities

Restaurants, hotels, hotel apartments, resorts etc. in the UAE might charge one or more of the following taxes:

• 10 per cent tax on the room rate
• 10 per cent service charge
• 10 per cent municipality fees
• 6 to 10 per cent city tax
• 6 per cent tourism fee.

In Dubai, hotels charge 'Tourism Dirham Fee' per room per night of occupancy (for a maximum of 30 consecutive nights) ranging from AED 7 to 20 depending on the category/grade of the hotel.

In Ras Al Khaimah, hotels charge AED 15 tourism fee per room per night.

Read about  taxes service charges and tipping  in Abu Dhabi.

Laws and regulations:

• Circular no. 9/2023; amendments to government fees applied to hotel establishements in Abu Dhabi  
• D TCM Tourism Dirham Administrative Resolution No 2 of 2020 Prescribing the Rules for Calculating, Collecting, and Paying the Tourism Dirham Fee in the Emirate of Dubai .

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Everything you need to know about Dubai tourist taxes

Are you budgeting enough for your trip to Dubai?

Whilst Dubai is well-known as a tax-free earnings haven for many of its international expatriate workers, make no mistake there are many other taxes along the way!

In this tourist tax guide, we talk you through what sort of taxes you can expect to pay as a visitor to the UAE, how the 5% VAT introduced in 2018 works and refunds available to tourists.

You can read our complete guide to Dubai money matters here

Dubai Hotel Taxes

When you are booking a hotel online for Dubai it is VERY likely you are being quoted the gross price for just the hotel room, NOT the taxes, which are payable directly to the hotel.

These taxes on Dubai hotels have changed significantly over the years, but as at 2023, you can expect to pay:

• Municipality fee 7%
• Property service charge 10%
• “Tourism Dirham Fee” per room, per night 7 – 20 AED (varies depending on the grade of hotel, also called Hotel Tax or City Tax)

Learn more about the best places to stay in Dubai here! 

The hotel tax system down the road in Abu Dhabi is slightly different. If you would like to learn more about local tourism taxes in Abu Dhabi, pop over to this guide .

Dining Taxes in Dubai

When you are dining in a hotel restaurant or ordering room service, you can also expect the following charges to be added to your dining bill:

• Service Charge
• Municipality fee

In restaurants not attached to a hotel, you should expect to only pay 5% VAT.

You are not required as a restaurant customer to leave a tip in the UAE. Many will either round up or add 10-15% if they are happy with the service.

In a food court fast food outlet in Dubai, you should expect to pay:

• Only the 5% VAT. This should be included in your advertised price.

Purchasing food in a supermarket

• All supermarket food is subject to the 5% VAT; there are no zero-rated food items. The price on the shelf already includes VAT.

Learn more about the best places to dine in Dubai here

What about alcohol in Dubai? Is it taxed?

As you might know, alcohol IS available for non-Muslims in Dubai from licensed outlets.

It comes at a cost, though, as “ excise tax ” (AKA Sin Tax) is added for the pleasure. You won’t see it as this excess is added at the importation stage of the sale process. As a consumer, you will only see a separate line item for the VAT, and any hotel service charges.

PLEASE NOTE: For a trial period 1 January to 31 December 2023 the excise tax on alcohol has been removed, so drink prices in Dubai emirate should become cheaper.

If you have a liquor license for home consumption ( now also available for tourists ), the final 30% tax at the retail stores will be removed in 2023 (albeit how much of the 30% cut will be passed on to consumers is yet to be seen).

Other taxes and excises in Dubai

So as you’re starting to see, there are no income taxes but plenty of indirect taxes to be wary of!

Again, you will not notice excise as a consumer as they are paid by the importing wholesaler, but items such as carbonated drinks, energy drinks, sweetened drinks, tobacco and tobacco products also incur between 50-100% excise.

Dubai Tax Refund for Tourists Scheme

When VAT was first introduced in 2018, tourists still had to pay the full amount of VAT.

Since 18 November 2018, tourists only temporarily in the UAE can now apply for a VAT refund , operated by Planet, on behalf of the Federal Tax Authority. There are, of course, conditions:

• Goods must be purchased from a retailer who is participating in the ‘Tax Refund for Tourists Scheme’.
• Goods are not excluded from the Refund Scheme of the Federal Tax Authority.
• You must have the explicit intention to leave the UAE in 90 days from the date of supply, along with the purchased supplies.
• You must export the purchased goods out of the UAE within three months from the date of supply.
• The process of purchase and export of goods must be carried out according to the requirements and procedures determined by the Federal Tax Authority.
• Minimum spend 250 AED.

You can learn more about the Tax Refund for Tourists Scheme on the Planet website.

Before you go… More important things you should know when planning a trip to Dubai

• Pop into our essential planning information page, it includes everything you need to know about getting around Dubai , a handy guide on what to pack , and top tips for first-timers on the do’s and don’ts, laws, and customs to be aware of.
• Check out this incredible list of 150+ places you should visit when you’re in Dubai .
• Pick up a Dubai Pass from iVenture or a Go City Dubai Pass to save up to 50% on top Dubai attractions.
• Don’t forget to pack your travel insurance !!!
• Discover the best areas to stay in Dubai , or bag a bargain on your accommodation here:

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Thank you for providing such relevant tourist tax info. I shall spend my money in another country.

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DTCM Tourism Dirham Administrative Resolution No 2 of 2020

Prescribing the Rules for Calculating, Collecting, and Paying the Tourism Dirham Fee in the Emirate of Dubai

Laws and Decrees DET Events 7 Jan 2020, Corresponding to , UAE - Dubai

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Everything you need to know about taxes in the UAE

• Corporate Tax
• Tourist Tax
• Contact Tax Authorities

The UAE attracts people from across the globe for its lifestyle and favourable taxation policies. The high standards of living are backed by a robust economy. All consumers and companies operating in the region have to pay different taxes in the country. This handy UAE taxes guide covers the different taxes in the UAE that apply to goods and services, as well as the tax percentages consumers have to pay.

WHAT ARE THE DIFFERENT TAXES IN THE UAE?

Major infrastructure, public parks, markets and healthcare facilities are funded by the UAE Government. To provide greater conveniences to residents, the authorities decided to reduce the dependence of the country’s revenue stream on hydrocarbons and thus, implemented different taxes. These taxes also help regulate certain products that are harmful to society.

Let’s now look at the different taxes applicable in the UAE and answer the most frequently asked questions about these extra charges.

IS THERE INCOME TAX IN THE UAE?

One of the most frequently asked questions is whether there is any personal income tax in the UAE. Please note that the UAE does not charge direct income tax on individuals residing in the country.

VAT IN THE UAE

Value Added Tax, commonly known as VAT, is one of the most important taxes in the UAE for consumers. This indirect tax is payable for goods and services and is levied at each stage of the supply chain. This UAE tax was introduced on 1st January 2018.

VAT is usually borne by the end-users, with businesses generally collecting and accounting for VAT. Registered businesses collect VAT on behalf of the Federal Tax Authority (FTA), which is responsible for implementing VAT and other taxes in the UAE. They can then apply for refunds and rebates every quarter.

WHAT IS THE VAT PERCENTAGE IN THE UAE?

VAT in the UAE is charged at 5%.

WHAT IS THE VAT APPLICABLE ON?

Value Added Tax in the UAE applies to the supply of all goods and services, including food and beverage, commercial buildings, hotels and serviced accommodation, jewellery and electronic services.

However, certain items are zero-rated or exempt from VAT tax in the UAE. The list includes:

• Private and public school education
• International transport of goods and passengers
• Sale or rent of residential buildings
• Activities by not-for-profit organisations
• Local public passenger transport
• Certain investment precious metals, amongst others

WHICH BUSINESSES HAVE TO REGISTER FOR VAT?

Businesses must register to collect VAT if their taxable imports and supplies exceed AED 375,000. However, companies whose taxable imports and supplies are below AED 375,000 but above AED 187,500 can choose to register for VAT if they wish.

VAT applies to tax-registered businesses in the mainland and free zones. However, free zones recognised as ‘designated zones’ are considered outside the UAE for VAT purposes. This means that the transfer of goods between designated zones is VAT exempted.

DO TOURISTS HAVE TO PAY VAT IN THE UAE ?

Yes, tourists have to pay VAT when making purchases in the UAE. However, they can request refunds at their departure port*. For instance, travellers can request VAT refunds at the Dubai International Airport through self-service kiosks when departing the country.

*Presently, VAT refund for tourists in the UAE is only possible if they purchase products from retailers participating in the “Tax Refund for Tourists Scheme.”

EXCISE TAX IN THE UAE

Excise Tax is a type of indirect tax in the UAE that is levied on specific goods, including products that are harmful to people’s health or the environment. Authorities introduced the excise tax in the UAE in 2017; however, new excise tax rates were announced in December 2019. The end customer bears the cost of the excise tax.

Excise tax in the UAE is implemented to curb the consumption of harmful products and create a new revenue source to fund public services.

WHICH GOODS IS EXCISE TAX APPLICABLE TO?

Wonder ‘what items have excise tax in the UAE?’ Well, the excise tax applies to:

• Tobacco products
• Carbonated drinks (does not include sparkling water)
• Energy drinks
• Electronic smoking devices and tools (and liquids used in these devices)
• Sweetened drinks

WHICH GOODS ARE EXEMPTED FROM EXCISE TAX?

The list of products exempted from excise tax in the UAE includes:

• Ready-to-drink beverages (with at least 75% milk or milk substitutes)
• Baby food or baby formula
• Beverages for special dietary needs as recognised under Standard 654 of the GCC Standardization Organization
• Beverages consumed for medical uses as recognised under Standard 1366 of the GCC Standardization Organization

WHAT ARE THE EXCISE TAX RATES IN THE UAE?

The excise tax percentage in the UAE for eligible goods is as follows:

• 50% for carbonated drinks
• 100% for energy drinks
• 100% for tobacco products
• 100% on electronic smoking devices and tools (and on liquids used in these devices)
• 50% on products with added sugar/other sweeteners

CORPORATE TAX IN THE UAE

Currently, corporate tax only applies to specific industries or companies in the UAE such as oil companies and branches of foreign banks. Also, each emirate has its corporate tax rate.

However, from June 2023, a 9% new corporate tax in the UAE will be enforced on company profits. Businesses with profits up to AED 375,000 will not be taxed. Similarly, companies working on natural resources extraction will remain on the Emirate level corporate taxation.

TOURIST TAX IN THE UAE

Tourists in the country have to pay a special tax at restaurants, hotels, hotel apartments and resorts. These facilities may charge one or more of these taxes in the UAE:

• 10% on room rate
• 10% as service charge
• 10% as municipality fees
• City tax (which ranges between 6% – 10%)
• 6% as tourism fee

In 2014, the Tourism Dirham Fee in Dubai was introduced to be charged by hotels, hotel apartments, guest houses and holidays homes in the emirate. This Tourism Dirham Fee is charged per room per night and ranges between AED 7 to AED 20, depending on the hotel rating.

The Tourism Dirham Fee for different categories of hotels is as follows:

• Five-star hotel or resort: AED 20
• Four-star hotel or resort: AED 15
• Three-star and two-star hotel: AED 10
• One-star hotel: AED 7

The tourism fee is charged at 4% in Abu Dhabi. Daily charges in the UAE capital also include a municipality room fee, AED 15 per room per night.

FREQUENTLY ASKED QUESTIONS

I have a specific tax-related query. who should i contact.

If you want to know more about UAE taxes, contact the Federal Tax Authority (FTA). This government entity is responsible for implementing federal taxes such as VAT or excise tax. You can contact the FTA at 600-599-994.

I HAVE QUESTIONS ABOUT THE TOURISM DIRHAM. WHO DO I GET IN TOUCH WITH?

For more information on the Tourism Dirham in Dubai, contact the Dubai Tourism Authority at 600-555-559.

To learn more about the tourism and municipality fees in Abu Dhabi, contact the Department of Culture and Tourism at 800-555.

And that concludes our guide to the various taxes in the UAE. We hope this resource answers your questions about the present tax system in the UAE.

If you want to rent or buy a property in the UAE, check out which real estate transactions are exempted from VAT . Tourists leaving the country via the capital city can read more about VAT refunds at Abu Dhabi International Airport .

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Dubai Tourism Taxes and Fees for Hotels & Airbnb

As an ever-evolving cosmopolitan hub, Dubai has become a beacon for tourists worldwide. This vibrant emirate offers a wealth of opportunity for those seeking to invest in the holiday home business. However, to navigate this venture smoothly, it's essential to understand the different taxes and fees involved in the process. Ahmed, a new holiday home owner, is eager to learn the ropes and share his insights on taxes after his story on getting DTCM Permit and basic criteria for holiday homes .

Overview of Tourism Taxes in UAE

Accommodation businesses, including hotels, hotel apartments, resorts, restaurants, and holiday homes in the UAE, typically charge a variety of taxes and fees. The commonly imposed charges include:

• 10% tax on the room rate
• 10% service charge
• 7% municipality fees
• 6 to 10% city tax
• Tourism Dirham fee

These are designed to ensure that the booming tourism industry continues to be supported and can contribute effectively to the local economy.

The Tourism Dirham Fee

One specific tax of note is the 'Tourism Dirham Fee,' applied per room, per night of occupancy, capped at a maximum of 30 consecutive nights. In Dubai, this fee varies from AED 7 to 20, contingent on the category/grade of the hotel or holiday home. For instance, in Ras Al Khaimah, hotels impose a flat AED 15 tourism fee per room per night.

Tourism Dirham Fee Breakdown for Holiday Homes and Hotels

For holiday home owners like Ahmed, the Tourism Dirham fee per room, per night, is determined by the classification of the property:

• Luxury Holiday Home: AED 15 per room per night.
• Tourist Holiday Home: AED 10 per room per night.

Hotels have their specific charges, too:

• Five-star hotels: AED 20
• Four-star hotels: AED 15
• Three-star hotels: AED 10
• One-star/budget hotels: AED 7

In each case, this fee is collected when the guest checks in, and it must be shown as a separate line item on the bill.

Paying the Tourism Dirham Fee

The procedure for paying the Tourism Dirham Fee is crucial to keep in mind. If you provide inaccurate documents or incomplete information, or manipulate accounts in relation to the Tourism Dirham, you could face a fine of AED 15,000.

Payment methods include check deposit directly or bank transfer to the department bank account. You will need the following details:

• Bank name: Emirates NBD (any branch)
• Account name: DTCM-Tourism Dirham
• (IBAN) No: AE450260001012049366501

Upon successful transfer, ensure to confirm the update of the e-tourism dirham system when a confirmation screen appears. Always include your company's commercial license number or Holiday Home Foundation when making necessary Tourism Dirham payments.

Remember, for long stays spanning more than 30 consecutive nights, the Tourism Dirham fee will only be charged for the initial 30 nights. As a licensee, you are required to enter the Tourism Dirham data by the 15th of each month.

Operating a holiday home or a hotel business in Dubai is an exciting venture. By being aware of the different taxes and fees, and understanding the importance of timely and accurate payment, you can navigate the process with confidence, just like Ahmed.

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Dubai Hotels Taxes – rates and top questions most people ask

What is it? Do you have to pay extra? When and who do you pay it to? How much is the hotel tax?

In this article we answer all of these puzzling questions in detail.

What is the Dubai hotel tourist tax?

March 31st, 2014 Dubai Department of Tourism and Commerce Marketing introduced a hotel tax in Dubai. Now a traveler is expected to pay a kind of a “hospitality fee” also known as “tourism dirham” when staying at hotels, guesthouses, holiday homes and any other accommodation.

Why was the Dubai hotel tourist tax introduced?

The authorities explain that the tax was introduced to facilitate tourism and trade in Dubai, boost the growth of the industry, promote the Emirate as an attractive tourist destination and help it raise funds for the upcoming Expo 2020. However, the Dubai hotel tax is not a unique thing - the hotel tax is paid in many countries around the globe including USA, Spain, Italy, Austria etc.

How much is the hotel tax in Dubai?

The rate of the hotel tax in Dubai depends on the type of accommodation, class of the hotel and duration of your stay. It will normally range from AED 7 (1.95 $) to AED 20 (5.4 $) per night (7 Dirhams for a guesthouse, 20 Dirhams for a Deluxe hotel apartment). The exact prices are provided in the table below:

When is the Dubai hotel tax paid?

You are normally expected to pay the Dubai hotel tax when checking in or checking out. It is paid for every night of your stay. It will be included in your bill.

Are there any other hotel taxes in Dubai to be paid

On top of the tourist dirham there is the Dubai hotel tax of 10% which is also called Municipality Fee as well as 10% Service Charge. Remember that the Dubai hotel tax can also be referred to as the City Tax or Tourism Dirham.

Let’s sum things up:

• The Dubai hotel tax is a kind of a hospitality fee you have to pay when staying in the city.
• It was introduced by the Emirate in 2014 as a means of boosting the growth of the tourist industry.
• It is comprised of the daily tax to be paid per room as well as 10% Municipality Fee and 10% Service Charge. All these charges are added to your bill.
• The Dubai hotel tax (tourist dirham) is paid for every night of your stay.
• The amount of the tourist dirham tax depends on the category of the hotel and its rating.

Although the Dubai hotel tax was adopted about two years ago, not all tourists are aware of it. June 1st, 2016 Abu Dhabi introduced a hotel tax, too. This has already been done by many tourist destinations around the world such as Catalonia and the Maldives, and more paces are yet to join.

Though the Dubai hotel tax makes a stay a little more expensive, it hasn’t frightened away or discouraged the tourists coming to the UAE. The beauty of the place, its comfort, combined with the all-year sun make your stay in Dubai unforgettable. However, when planning your trip, you have to remember about these additional expenses. Go ahead and enjoy your exciting experience in this amazing country.

Editorial team Atton Accounting & Consulting

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The United Arab Emirates (UAE) is one of the world’s fastest growing tourist destinations, having all the right ingredients for an unforgettable holiday- sun, sand, sea, sports, unbeatable shopping, top-class hotels and restaurants, a rich traditional culture in a safe and welcoming environment. Since the unification of the UAE’s seven emirates 42 years ago, the UAE has made its mark in the world as a leading tourism destination.

The introduction of the Tourism Tax is to support the growth of UAE’s economic pillars – Trade and Tourism. The Tourism Tax will apply to all guests staying at hotels, hotel apartments, guesthouses and holiday homes.

Restaurants, hotels, and resorts (among others) may charge the following taxes:

• 10% on the room rate
• Service charge (10%)
• Municipality fee (10%)
• City tax (6–10%)
• Tourism fee (6%)
• Tourism fees and hotel charges vary by Emirate

In Dubai, there is a Tourism Dirham Fee per room for each night of occupancy (for up to 30 nights) that ranges from AED 7 to AED 20. In general, this depends on the grade of the hotel.

Abu Dhabi charges an additional 4% fee onto hotel bills and charges AED 15 per night, per room.

Ras Al Khaimah hotels also charge a tourism fee per room per night of AED 15.

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Tourist Taxes in the UAE: What Travelers Need to Know

General Accountant, Elnaggar & Partners

• In the UAE, tourist tax regimes are different across the country. Not all of the Emirates apply such a tax.
• With the introduction of these taxes, hotels and accommodation providers have increased their prices accordingly.
• This Practice Note discusses the tax regime applicable to accommodation, known in the UAE as the “tourist tax” or the “tourism dirham fee”.

Definitions

• Tourist tax: Tax levied by some UAE Emirates on each room occupied in hotels and furnished apartments across the country.
• Hotel and furnished apartments: Hotels, resorts, hotel apartments, guesthouses, budget hotels, floating hotels, holiday homes, and other hotel establishments.
• Guest: A natural person staying at any hotel establishment in return for payment.
• DCTCM: The Dubai Corporation for Tourism and Commerce Marketing.
• DTCM: The Department of Tourism and Commerce Marketing.
• TCA: Abu Dhabi Tourism and Culture Authority.

In recent years, the United Arab Emirates (UAE) has become an undeniable tourist hotspot. Its mix of modern skylines, rich cultural history, and luxury experiences that cannot be found anywhere else has captivated travelers. From the awe-inspiring design of Dubai to the historical treasures of Abu Dhabi, the UAE has become a magnet for travelers looking for a taste of luxury and adventure. But behind this tourism lies a financial facet that underpins the nation's thriving tourism sector:  the tourist tax.

The tax landscape in the UAE extends far beyond just the Value Added Tax (VAT) . In this dynamic fiscal environment, various forms of taxes and levies are in place to support government revenues and ensure the smooth functioning of public services. While VAT is a significant contributor, there are several other types of taxes and charges that individuals and businesses should be aware of including service charges, municipality fees, and city taxes.

One notable taxation element in the UAE is the tourist tax. This specific tax is defined separately from the aforementioned service charges, municipality fees, and city taxes. The tourist tax is distinct in that it primarily targets visitors and tourists who are staying in accommodations such as hotels, resorts, and other lodging establishments. This tax is levied in addition to any city or municipality taxes that might apply.

The tourist tax is an essential source of revenue for the UAE as it helps offset the costs associated with tourism infrastructure, marketing, and promotion. It also ensures that the burden of financing these activities is shared between tourists and the local population. The revenue generated from the tourist tax is crucial for maintaining and enhancing the country's status as a top tourist destination while providing visitors with world-class experiences during their stay.

Among all these varying charges imposed, this Practice Note focuses only on the tourist tax as defined above which may be applied in addition to city or municipality taxes.

In the UAE, a tourist tax is imposed in three Emirates: This tax is imposed and administered differently in each Emirate, namely:

• Ras Al Khaimah.

In contrast to their counterparts, Fujairah, Ajman, Sharjah, and Umm Al Quwain do not specifically institute a tourist tax. Instead, these Emirates predominantly rely on a mix of other forms of taxation for tourists: city or municipality taxes, service charges, and the Value Added Tax (VAT).

The fixed tourist tax applies per room and per night in the following accommodations:

• hotel apartments,
• guesthouses,
• budget hotels,
• floating hotels,
• holiday homes, and
• other hotel establishments located in the Emirates where such a tax exists.

The proportional fee applies on the total hotel bill.

The current scenario is less complex in comparison to making reservations directly with hotels. The majority of tour operators include all applicable taxes and charges associated with hotel accommodations into the overall cost of the vacation package. The majority of tour providers, but not all.

Depending on the Emirate, the tourist tax rate will vary:

• In Abu Dhabi , hotels typically impose a tourism fee of 6% on guests' hotel bills, along with a fixed fee of AED 15 per room per night. However, as of June 2018, this fee structure was temporarily adjusted to promote tourism and attract investments in the UAE's tourism sector. During this period, the tourism fee was reduced to 3.5% from its previous 6% and the fixed nightly fee dropped to AED 10 from AED 15. It is worth noting that there has not been a specified end date provided for this reduction in fees.

In addition to these temporary adjustments, Abu Dhabi also applies other charges to hotel bills. These include a municipal tax of 4% (which was reduced to 2% between 2018 and 2020), a service charge of 10%, a 5% VAT, and the tourist tax of AED 15 per night (reduced AED 10 between 2018 and 2020). It is important to mention that the "Tourism Dirham" fee is not dependent on the star rating of the hotel and is charged uniformly unlike Dubai and Ras Al Khaimah which has its own classification of categories.

• In Dubai, a fee also known as the "Tourism Dirham Fee" is applied on a nightly basis per room with a maximum duration of 30 consecutive nights. The fee amount is determined based on the classification category of the accommodation with the following rates in effect: (1) for 5-star hotels and deluxe apartments, the fee is AED 20 per bedroom per night, (2) for 4-star establishments and superior apartments, the fee stands at AED 15 per bedroom per night, (3) while 3-star and 2-star properties, as well as ordinary apartments, are subject to a fee of AED 10 per bedroom per night, and (4) 1-star establishments, guest houses, and hostels incur a fee of AED 7 per bedroom per night.
• In Ras Al Khaimah, like in Dubai, the tourist tax is charged per room and per night, and assessed according to the classification category of the hotel and furnished apartments and in accordance with the following amounts: municipal tax - 7%, service charge - 10%, VAT - 5%, while the "Tourism Dirham Fee" is exactly the same as in Dubai.

Tax Collection

• In Dubai , the tax is collected by the hotel and paid to the DCTCM before the 16th day of the month following collection. Hotels must maintain audited accounting books to record all “Tourism Dirham Fee” transactions. Monthly and yearly account statements of room occupancy must be provided to the DTCM.
• In Abu Dhabi, the tourist dirham fee is collected by the hotel directly from the guest and paid to TCA . This is added to the Department of Municipal Affairs' government budget.
• In Ras Al Khaimah , the tourism fee is collected by the hotel directly from the guest and then paid to the Ras Al Khaimah Tourism Development Authority.

Overall, the tourist tax plays a pivotal role in sustaining the UAE's position as a top tourist destination and helps ensure that the costs associated with tourism are shared between tourists and the local population. As the nation continues to attract visitors with its blend of modernity and cultural richness, the careful administration of these taxes remains crucial for supporting the country's growth and enhancing the visitor experience.

Legislation

• Dubai Executive Council Decision No. 2/2014 on the Adoption of the Tourism Dirham in the Emirate of Dubai
• Dubai Executive Council Decision No. 10/2014 on the Amendment of the Dubai Executive Council Decision No 2/2014
• Dubai Municipal Regulation No. 2/2006 Concerning the Municipality Fee on Sales of Hotel Establishments in the Emirate of Dubai [1]
• Ras al Khaimah Emiri Decree No. 20/2015 Concerning the Approving of the Tourism Dirham amended by Ras al Khaimah Emiri Decree No. 7/2016
• Taxes in tourist facilities - Official portal of the UAE Government [2]

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Dubai hotels start charging ‘Tourism Dirhams’

The fee was introduced by the dubai government to help fund expo 2020 projects..

March 31, 2014

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DUBAI // The new tourism fee for hotel guests, introduced by the Dubai Government to help fund Expo 2020 projects, came into effect yesterday.

The Tourism Dirham is a charge of Dh7 to Dh20 a night on guests staying at hotels, hotel apartments, guest houses and holiday homes.

“If you’re staying in a 5-star hotel for a week I don’t think paying an extra Dh20 a night will make much difference to you,” said Rebecca Jones, from the UK, who was on holiday with her friends.

Others were unaware of the charge but felt it was set at a reasonable level. “It doesn’t seem to be that much money in my opinion,” said a British woman staying at the Address Hotel in Downtown Dubai with her husband for a week.

“No one likes to pay more for things but when most people go on holiday they sort of expect to be spending money and budget for it. I’m not sure what we will be paying but it’s not something that will have any impact on us enjoying our time in Dubai.

“You can spend Dh20 on a coffee here so it’s not a big deal for us.”

For Adnan Ul Haq, a Pakistani resident of Dubai, the fee was important to help finance Expo 2020 .

“I think you have to look at the long-term benefits compared with some possible minor short-term down sides,” he said.

“I personally don’t think the fee itself will put people off from coming to Dubai, but, even if it does, in the long run millions more will come for the Expo.

“The Dubai Government is doing the right thing with this as it’s at a low level that people won’t notice.

“The good thing is that with all the tourists who visit Dubai the money will add up quickly. I think it’s a win-win situation because the money will be used to improve infrastructure, which will, in turn, encourage more people to come here.”

However, Claire Springs, from the United States who has lived in Dubai for five years, sounded a note of caution.

“The current rate seems fair to me and as long as they don’t increase it in the coming years people won’t mind paying,” she said.

“The other issue is will they drop it once the Expo has been held or will they decide to continue to apply it?

“I think it can be tempting for governments including those in the West to keep fees and charges because it becomes a steady revenue stream.”

Other residents were happy that the burden for paying for the Expo projects would not fall on them.

“This kind of fee is good because people who stay in these hotels will not miss Dh10 to Dh20 a day and they expect to spend when they are here,” said an Indian national, who did not want to be identified.

"With the rents going up in Dubai I think many people here are suffering with the high cost of living so it would be difficult to have a fee like this added to your monthly expenses."

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Al Seef Heritage Hotel Dubai, Curio Collection by Hilton

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Find all the details you need for a great stay at Al Seef Heritage Hotel Dubai, Curio Collection by Hilton.

Our amenities

On-site restaurant

Room service

Fitness and recreation

Fitness center

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Saba'a serves an Emirati and international breakfast buffet, and we specialize in Middle Eastern dishes for dinner. Picnic-style room service is available 24 hours.

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Check-in 3 pm → Check-out 12 pm

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Cancellation policies may vary depending on the rate and dates of your reservation. Please refer to your reservation confirmation to verify your cancellation policy. If you need further assistance, call the hotel directly or contact

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Children up to 18 years old stay free (with existing bedding) when sharing a room with a paying adult on a room only rate. Kids menus may be available upon request, please contact the property.

The Tourism Dirham fee is AED 15 per room per night. Because family rooms consist of two rooms, the fee is AED 30 per night.

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Hotels in Dubai to charge ‘tourism dirham’ starting from Monday

Business travel & tourism.

Hotels in Dubai will collect the fee from their guests and pass it on to DTCM

Dubai: The tourism dirham, a new fee announced by the Dubai Department of Tourism and Commerce Marketing (DTCM) in January, takes effect on Monday. The fee is imposed on guests staying at hotels and hotel apartments in Dubai per room per night. Hotels will collect the fee and pass it on to DTCM.

“The revenues raised from the tourism dirham will be used to fund the development of the emirate’s tourism and trade sectors, which includes investment into both enhancing the destination offering and into marketing,” Issam Abdul Rahim Kazim, CEO of Dubai Corporation for Tourism and Commerce Marketing (DCTCM), a new affiliate of DTCM, told Gulf News in an emailed statement.

The corporation is responsible for the international promotion and marketing of Dubai.

Kazim did not provide a figure for the contribution of the tourism dirham to the tourism industry’s revenue.

A fee of Dh20 is charged by five-star hotels, Dh15 by four-star hotels, Dh10 by two- and three-star hotels and Dh7 by one-star or budget hotels, according to DTCM.

Hawthorn Suites by Wyndham is charging guests Dh10 per room per night, while Ramada Downtown Dubai is charging Dh20.

“We expect the success [of the tourism dirham] technically. However, operationally the hotels may face some challenges of collecting the fees from guests being new introduced charges,” said Christophe Landais, regional Managing Director of Accor, a French hotel operator.

He added that the fee will eventually “move smoothly” as guests become more aware of it.

Meanwhile, hotels on ClearTrip, an India-based travel website with operations in the UAE, are charging guests the tourism dirham on top of the price of the room, according to Tareq Khatri, the company’s Senior Vice- President of Business Development.

Khatri pointed out that the tourism dirham will not discourage travellers from staying at hotels in Dubai since they are paying a small fee.

Similarly, Kulwant Singh, Managing Director of tour operator Lama Tours, said he did not believe there is any “negative sentiment” from customers.

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Our services back, our knowledge back, our offices back, dubai tourists to face the new tourism dirham fee.

Aruna Mukherji - Associate - Real Estate

Further clarifications have now been issued by the Department of Tourism and Commerce Marketing (“DTCM”), and we have taken the opportunity to report on these below.

The DTCM have held various workshop sessions for hotel industry finance personnel to introduce DTCM’s dedicated team who will be supporting the implementation of the Tourism Dirham Fee.  Attendance at the sessions is mandatory and is required in order to acquire an ‘Administrative Account Number’ for each establishment, which will be registered on DTCM’s system.

(A) Executive Council Resolution No. 2 OF 2014

As mentioned in the March edition, Executive Council Resolution No. 2 of 2014 introduced the Tourism Dirham Fee in Dubai (“ECR 2 of 2014”) which is applicable to all hotel establishments operating in Dubai, including hotel apartments, holiday homes, and any such establishments which are located in special development zones and free zones such as DIFC.

The Tourism Dirham Fee is payable for each night of occupancy per room in accordance with Schedule 1 of the ECR 2 of 2014.  We have provided a summary of ECR 2 of 2014 as follows:

• The hotel establishment shall submit the proceeds collected towards the Tourism Dirham Fee to DTCM before the 16th day of the month following collection of such fees;
• The hotel establishment shall maintain books and records regarding collection of the Tourism Dirham Fee in accordance with recognized accounting standards for at least five (5) years. A monthly account report on occupancy and fees collected shall be provided to DTCM;
• The hotel establishment shall have its final accounts audited by an licensed auditor at the end of the financial year and provide DTCM a copy within six (6) months;
• In the event of suspension of the hotel establishment’s activities, no Tourism Dirham Fee shall be collected during this period subject to the prior notification and approval of the suspension by DTCM;
• The hotel establishment shall be deemed to have evaded payment of the Tourism Dirham Fee in the event that it, (i) fails to pay the Tourism Dirham Fee within the stipulated time frame to DTCM; (ii) fails to collect the Tourism Dirham Fee from guests; (iii) fails to maintain accounting books recording payment of the Tourism Dirham Fee and submission to DTCM; (iv) manipulates accounting data or provides false information; (v) obstructs  DTCM employees in performing inspections or audits; (vi) performs any act deemed by DTCM as an evasion of payment of the Tourism Dirham Fee.
• Failure to pay the Tourism Dirham Fee to DTCM within the stipulated time frame or failure to collect such fee from guests would entail a fine of ten per cent (10%) of the unpaid fee amount provided that the fine is not less than AED 1,000. The complete list of violations and fees payable by the hotel establishment are provided in Schedule 2 of ECR 2 of 2014.
• In addition to imposition of the various fines, DTCM may also adopt additional stringent measures such as temporary closure of the hotel establishment up to three (3) months or more serious cases, permanent closure.
• DTCM employees nominated by a resolution of the Director General of DTCM, in coordination with the Director General of the Government of Dubai Legal Affairs Department, shall work in the capacity of law enforcement officers pursuant to ECR 2 of 2014.
• An affected party shall be entitled to submit his written grievance to the Director General of DTCM against any decision, procedure or measure issued or taken against him within fifteen (15) days of its notification. Upon receipt of the grievance, a DTCM committee formed specifically to consider the grievance shall issue its final decision within thirty (30) days with this decision being final and binding.

(B) DTCM Circulars

Since the issue of ECR 2 of 2014, three circulars have been issued by DTCM to clarify certain matters, and to introduce guidelines for implementation of the scheme.

The key issues addressed by these Circulars can be summarized as follows. The Tourism Dirham Fee:

• is a separate fee to be listed separately on any invoice/receipt.  It should not be included in a room rate for calculation of the existing Dubai Municipality Fee and Service Charges;
• is not applicable to:

– any late checkout extension (even if a fee for same is charged by the hotel); or

– a room which is not classified by DTCM to be rented to guests as part of the hotel establishment’s inventory (ie. rooms designated as accommodation supplied by the hotel to its own employees that are registered under the hotel trade licence).

• is charged on a room per night basis, irrespective of the number of guests occupying the room (eg. a 2 room suite would be subject to a charge for 2 rooms);
• is calculated at a maximum stay of 30 (thirty) nights in respect of any guest’s stay which exceeds 30 (thirty) nights.

For your information, we have provided more detailed summaries of the Circulars below:

(1) Circular no. D/000/152/187 dated 23 February 2014 (“Circular 1”)

Circular 1 provides the guidelines for the implementation of the Tourism Dirham Fee together with a form of notice which has been approved by the DTCM for use by hotels to provide to their guests at the time of check-in.

• A notification in accordance with the template attached to Circular 1 shall be provided to the customers at the time of check-in by the hotel establishment. The Tourism Dirham Fee shall be paid by the guest at the time of check-out in accordance with Schedule 1 of ECR 2 of 2014;
• The Tourism Dirham Fee is also applicable to commercial stays, complimentary stays, promotional stays, upgrades and short stays less than 24 hours. However the Tourism Dirham Fee is not applicable in cases of late checkout and house use rooms (i.e. rooms in a hotel designated for its employees);
• The Tourism Dirham Fee shall be calculated based on each day’s stay and the number of bedrooms. For example, a guest staying two (2) nights in a one bedroom hotel apartment in the Standard Hotel Apartment category will be charged: 2 nights x 1 bedroom x AED 10 = AED 20;
• Transition Period:  The Tourism Dirham Fee shall be applicable for the transition period i.e. any stays on or before 31 March 2014 irrespective of payment as well as booking made for a stay prior to 1 June for which payment was completed prior to 23 February 2014. Any extension or contract renewals on or after 31 March 2014 would attract the Tourism Dirham Fee.

(2) Circular No. D/000/152/187/1 dated 30 March 2014  (“Circular 2”)

Circular 2 provides clarity on the following two matters namely:

• In case of stays exceeding 30 consecutive nights, the Tourism Dirham Fee would be capped and payable at 30 nights; and
• The last date for exempted bookings was 31 March 2014 where bookings were fully paid up prior to 23 February 2014, regardless of the date of payment collected by the hotel establishment.

(3) Circular No. D/000/152/187 dated 26 March 2014 (“Circular 3”)

Circular 3 announced the formation of the dedicated team at DTCM and the dates of those workshops which shall take place on the implementation of the Tourism Dirham Fee.

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