(MENAFN- Khaleej Times)

Dubai has announced that new hotel establishments in certain areas within the emirate will be reimbursed 100 per cent of the Dubai Municipality fee on room sales and the Tourism Dirham for two years after opening.

This incentive programme for investors from the Dubai Department of Economy and Tourism (DET) is meant to stimulate hotel development in future high-growth areas in the city.

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Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai issued Executive Council Resolution No. (68) of 2025, approving the initiative.

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Which hotels are included?

It covers new hotels, resorts, hotel apartments, and other facilities approved by the DET, and located within Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands.

The incentive, applicable only for hotels registered after the introduction of the resolution, is poised to attract further investment into the city's hospitality ecosystem. This will enable it to meet increasing demand amid the continued implementation of the Dubai Economic Agenda, D33.

In the first eight months of 2025, Dubai welcomed 12.54 million international overnight visitors, up 5 per cent year on year, following back-to-back record visitation in the previous two years. The same period also saw 29.03 million occupied room nights at the city's hotels, up 4 per cent year on year, with an occupancy rate of 78.5 per cent, one of the highest among major global cities and up two percentage points compared to the first eight months of 2024.

Based on the resolution, the Dubai Department of Economy and Tourism is responsible for receiving, reviewing, and deciding on applications submitted by investors in hotel projects. The department will also ascertain that all conditions continue to be met throughout the period during which the hotels benefit from the incentives.

Hotel establishments must apply to the DET using the approved forms and procedures. They must be licensed and classified under Decree No. (17) of 2013 Concerning the Licensing and Classification of Hotel Establishments in the Emirate of Dubai at the time of application and throughout the benefit period. Establishments must start operations and receive guests within three years of applying.

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