Abu Dhabi to cut tourism and municipality fees at hotels and restaurants

The move comes a day after Dubai announced that it was reducing its municipality fee on sales at hotels

The Landmark skyscraper, center, stands on the city skyline beside a waterway in Abu Dhabi, United Arab Emirates, on Monday, May 30, 2016. Abu Dhabi, which sits on six percent of global oil reserves, cut spending by a fifth in 2015 and plans a further 17 percent reduction this year, according to the governments bond prospectus. Photographer: Alex Atack/Bloomberg
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Abu Dhabi's Executive Council has announced plans to encourage investment in the emirate by reducing the fees applied to hotel stays and dining at food and beverage outlets attached to hotels.

Under the instruction of Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi, the 6 per cent tourism fee currently applied to hotel rooms and outlets has been reduced to 3.5 per cent, the municipality fee has been reduced from 4 per cent to 2, and the per room, per night hotel fee has gone down from Dh15 to Dh10.

The move was based on a proposal by Mohammed Al Mubarak, Chairman of Abu Dhabi Tourism & Culture, which was the product of discussions with private investors. The fee adjustments are expected to encourage tourism and investment in tourism in the emirate.

Additionally, it was announced that further investments will be made in tourism infrastructure, and investors will be encouraged to develop recreational facilities and events that will contribute to positioning the UAE as a leading tourist destination.

Tourism is one of Abu Dhabi's fastest growing sectors, and the capital has recently opened Louvre Abu Dhabi, Warner Bros World and Al Hudayriat Island.


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On Monday, Dubai announced plans to cut the municipality fee on sales at hotels and hotel restaurants in the emirate from 10 per cent down to seven.

The emirate's plans are also aimed at enhancing Dubai’s status as a major international tourist destination, with the fee reduction expected to have a direct impact on food and beverage sales ahead of the busy Eid Al Fitr weekend.

Abu Dhabi expects six million hotel guests in 2018 as the emirate ramps up efforts to promote tourism. The emirate received a record 4.4 million tourists in 2016, according to official statistics, whereas Dubai welcomed almost 16 million visitors last year.