Abu Dhabi reduces tourism fees to boost hospitality sector

Abu Dhabi has reduced tourism-related fees to help the hospitality sector and attract more visitors as the capital looks to diversify its economy, state news agency WAM reported, quoting the Department of Culture & Tourism (DCT).

DCT said on Tuesday that it has reduced tourism fees from 6 to 3.5 percent, municipal fees from 4 to 2 percent and municipality hotel room fees per night from AED 15 to AED 10.

The move to reduce the fees came on the back of a study on Abu Dhabi’s hotels conducted by the DCT.

“The tourism sector is a key alternative to oil,” said Saif Saeed Ghobash, undersecretary of DCT.

“It is necessary to support this sector as it experiences difficulties to allow it to contribute to the achievement of future goals.”

The financial impact of the reduction in fees would be AED 1 billion over the next three years, he said.

DCT also plans to spend AED 500 million over the next three years towards marketing the emirate and attract tourists, as part of the Abu Dhabi government’s accelerators program called Ghadan 21.