Hotels in Abu Dhabi, the capital of the United Arab Emirates are about to get more expensive as of June 1. According to a press release issued by the Department of Municipal Affairs and Transport along with the Tourism and Culture Authority (TCA) fees amounting to four per cent of every guest’s bill plus a charge of Dh15 per night per room will be added to a guests hotel bill.
A representative from Rotana Hotels recommended that the government postpone the implementation date.
It would serve Rotana better if the date is pushed back especially as hospitality industry now faces falling revenues on the back of a drop in demand.
The strength in the US dollar, to which the UAE dirham is dependent on has made the country a more expensive travel and tourism destination especially when compared to Europe, Russia, and China where currencies are depreciating.
All three markets have long been some of the UAE’s biggest source markets for incoming tourists.
TCA also said it will soon hold workshops to discuss the collection and deposit mechanisms of the fee.
Under the resolution, the fee will then be deposited in the government budget and invested in boosting the tourist infrastructure of Abu Dhabi. It will also help enhance the services on offer to hotel guests.
However, unlike Abu Dhabi, the fee is not standard across all hotels in Dubai. A fee of Dh20 is charged by five-star hotels in Dubai, Dh15 by four-star hotels, Dh10 by two- and three-star hotels and Dh7 by one-star hotels.