Hotel tax to fund Dubai Expo 2020
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The cost of financing the World Expo 2020 in Dubai could be paid in part by a tax on hotel nights according to an announcement last week by Helal Saeed Al Marri, the director general of Dubai Tourism and Commerce Marketing (DTCM).
Tagged “Tourism Dirhams” the intention is to generate a fixed sum from every hotel night within the emirate, however a precise figure has not yet been agreed as the programme is still in the design phase.
The cost of Expo 2020 infrastructure development is expected to be US$8.8 billion to be funded for the most part by the Government and Foreign Investment. The role of the hospitality sector in project financing is yet unclear with more information promised by DCTM over the next ten days. In the meantime, hoteliers are keeping a cool head as they await details of the Tourism Dirhams programme.
Laurent Voivenel, chief executive of the Dubai-based operator Hospitality Management Holdings, told The National newspaper; “As we have still not received any information regarding the value of Tourism Dirhams to be levied on hotels and hotel apartments in Dubai, it is difficult to anticipate or calculate the impact of this fee on the room rates at the various hotels in HMH portfolio in Dubai.”
The same source reported that hotel guests in Dubai currently pay 10% municipality fees plus 10% services charges, both based on their daily room rates which as of December, stood at US$289.
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