Historically the UAE has charged very low taxes (theres still no income tax), which is part of their growth plan. For them its an investment in the future, as the goal is to make it attractive for people to visit the UAE, in hopes of the countryhaving a future after the oil dries up.
Continue reading: Abu Dhabi Airport Introduces New Passenger Tax
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I am surprised by the comment "these kinds of fees can impact passenger demand.".
After all its only about 1% extra for a Americas - Asia round-trip flight.
Gulf countries have been tax free since their constitution. Demographic has always been low and income good due to a large oil production concentrated within a small region known as GCC (Gulf Cooperation Countries). But Dubai (most important city state in the Emirates after Abu Dhabi) has almost finished oil which prompted to seek alternative income. No wonder that they are trying to limit subsidies. In 2015 vehicle fuel subsidies ended and the prices now fluctuates every month. The new airport tax (which to me seems still reasonable) is one of the many initiatives to limit government subsidies which still today stands at billions. Yet services excel almost everywhere, so residents like myself have little to complain about.
Lucky describes the new charge of AED 35.00 (USD ~9.50) as "not that bad," yet a few weeks ago a similar new Norwegian airport tax of about the same value was described by this very blog as "nasty."
Which is it?
They also added a tax for hotels recently in Abu Dhabi. I have a stay at the St Regis in a few weeks and they emailed me about the new room tax
I haven't received any feedback from the Etihad booking and I fly 7/7 out of Abu Dhabi. Guessing they're absorbing the fee or for new bookings only like you noted. But the hotel fee, they are definitely charging that because they emailed me. I copied and pasted some of that email below.
We would like to inform you that the Abu Dhabi Tourism and Culture Authority have recently announced the introduction of a new municipality fee and additional charge for each night of your stay. This will be applicable to all Hotels in Abu Dhabi and will come into effect as of 1st of June 2016.
The new charges will be as follows:
· 4% of the value of your hotel invoices as Municipality Fee
· AED 15 per night per bedroom of your selected room category.
The above charges are in addition to the existing current tourism fee and service charge which are as follows:
· 10% service charge & 6 % tourism fee.
We hope the above is clear, and please do not hesitate to contact us, if we can be of any further assistance. It will be our privilege.
@Smitty
Oslo has a lot more LCC carriers flying short haul so they will be affected more heavily.