New 5% Tax On UAE Hotels Kicks In Today
With reduced oil revenue in the Middle East, we've seen all kinds of changes in the UAE, Qatar, etc. Businesses (including airlines) are being run in more of a sustainable way, and we're seeing existing taxes being increased, and new taxes being introduced. For example, in the past I've written about how the airport taxes…
Continue reading: New 5% Tax On UAE Hotels Kicks In Today
Share your questions, experiences, and thoughts below.
The service charge is an optional charge levied by the property and is not imposed nor collected by the government. You can negotiate it away in corporate rates.
Also, the tourism dirham charge is a flat per night charge that has to be paid directly to the property (viz. Not included in prepaid rates via third party agents). It's value ranges from AED 7 to AED 20 depending on the hotel quality. It is not applicable to stays of 30 consecutive days or longer.
I've had to argue pretty hard before to get the tourism dirham waived on an award stay.
The taxes are anti tourist and the countries will see a decline in tourist revenues
@Bumbles don’t you have anything better to do than insult and chat shit on new years day mate?
@ Bumbles: Why would you use such vile language? Do you talk to your mother with that mouth? Shame on you.
So really, taxes and fees on hotel stays went from ~23% to ~28%. Yes, that’s an increase, but if I were a tourist willing to pay 23% in taxes/fees, I am not sure an extra 5% would make all that much difference.
I mean, what can we do? Still wanna go back to Dubai, this extra 5% wont deter me.
Nothing like paying more taxes to a totalitarian regime with no transparency on how they spend the ‘public’ coffers on their own ‘royal’ household. :/
Gonna only use points in the UAE now, their taxes are outrageous. I was planning on staying at a Jumeirah resort this spring, but will stay at the Ritz or St. Regis now using points.
@Red - The tourism dirham charge applies on award stays or any other type of promotional or complimentary stay. If it was waived, then that only means that the hotel paid it out of pocket rather than collecting it from you.
@JRMW - Service charges go to the hotels pocket so they are VAT chargeable like the room rate is.
FYI - Saudi Arabia has also introduced a 5% VAT effective January 1st, 2018. We were also greeted with an increase on petrol (gasoline) and electricity rates.
Fun times.
I don’t see the difference from hotels in the US. Las Vegas in particular. Resort fee is compulsory yet not included in the advertised rate. At some lower end properties, this is more than the room rate!
