FHW Staff – Mumbai
The hotel investment industry has been given a financial incentive to develop more mid-range hotels in Dubai, in a move to swell the Emirate’s supply of four and three star properties. Eligible hotels will be granted a concession on the standard 10 per cent Municipality Fee which is levied on the room rate for each night of occupancy. The initiative is designed to incentivise hotel owners to bring forward their construction timelines, creating more three and four star hotel rooms in Dubai.
The announcement was made by Helal Saeed Almarri, director general, Dubai department of Tourism and Commerce Marketing (DTCM), at the Hotel Show, Dubai World Trade Centre. Almarri said, “In order to achieve our headline objective of 20 million visitors per year by 2020, we need to both increase the overall stock of hotel rooms in Dubai and widen the range of options for visitors. In recent years the number of three and four star establishments has increased, but it’s vital that we continue to engineer the growth of this range. This incentive has been designed to bring those properties to market sooner. While our Tourism Vision has an end date of 2020, our strategy is focused on continual growth year on year, and we want to see the destination offer noticeably broaden every year. The equation is simple, the sooner the property opens, the bigger financial incentive the hotel owner will receive.”
Dubai’s Tourism Vision for 2020 was approved by Sheikh Mohammed bin Rashid Al Maktoum, vice president and prime minister, UAE and ruler of Dubai in May 2013 and includes the headline objective of welcoming 20 million annual visitors by 2020.
Almarri during the interview said, “We continue to focus on three key objectives: maintaining market share in our existing source markets; increasing market share in markets where there is high growth potential; and increasing the number of repeat visits. In order to successfully achieve these objectives, it is vital that we harness the collective power of key stakeholders, both in the public and private sectors in Dubai and abroad. The incentive announced today is just one example of the initiatives we will be taking to help foster this collaboration.”