News

Abu Dhabi hotel tax set to rise

13 Apr 2016 by Alex McWhirter

The falling oil price appears to be encouraging the Gulf states towards a policy of increasing travel taxes.

Two weeks ago we reported that Dubai was introducing its first ever airport tax from July 1 (see news March 30).

Today comes news that Abu Dhabi intends to increase its hotel tax to bring it more in line with neighbouring Dubai.

According to a report in The National, a new decree will impose a 4 per cent municipality fee on hotel bills.

In addition Abu Dhabi also plans to impose a flat charge of Dhs 15 (£2.90) per room per night.

Abu Dhabi hotel guests are currently charged 6 per cent tax and 10 per cent service charge.

Travellers staying in Dubai hotels currently pay more, namely 10 per cent tax and 10 per cent service fee. They must also pay a flat fee of Dhms 20 per night.

The proposed new charges in Abu Dhabi will soon add up for guests when staying more than a couple of nights.

Anyone staying at a five-star Abu Dhabi hotel is typically paying around Dhms 1,000 (£191) per night (plus the current 6 per cent tax and 10 per cent service fee).

It’s understood that hotels will collect these extra fees which will then be passed to the Abu Dhabi Tourism and Culture Authority and then added to the government budget.

Quoted in The National Guy Hutchinson, COO of hotel operator Rotana said:

“Once this is implemented, we expect facing some operational challenges while collecting the news fees from guests, but it will eventually be normal as guests will become more aware of it, like the case in Dubai when the Tourism Dirham was introduced.”

No information is available on when these new fees take effect.

The next question will be whether or not Abu Dhabi follows Dubai and introduces an airport tax. And what about Oman?

visitabudhabi.ae

Alex McWhirter

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