Tourists Tax Introduced in Dubai

February 5, 2014 Taxation in UAE

Tax in DubaiDUBAI – Dubai will use tourist taxes to raise funds for new programs and efforts to bring more commerce and visitors into the city.

On March 31st 2014 Dubai will enact a daily tax of up to AED 20 to be paid by any tourist staying at local hotel or any other tourist accommodation, according to information released earlier this week by the state news agency WAM.

It is estimated that the collection of the new tax, which has already been called the Tourist Dirham, could raise annual revenues by as much as AED 330 million, but this amount could increase, as the government currently expects the number of arriving tourists to rise by 11 percent this year, and to double from the current figures by the year 2020.

According to plans already revealed by the government of Dubai, the extra tax revenues will be spent mainly on the promotion of Dubai as an international tourist destination and as a global business business hub.

Dubai is currently ranked as the 7th most visited city in the world, and sees more than 10 million tourist visit each, with more than 80 000 hotel room made available to them.

Photo by: Fabio Achilli