By July 1, 2018, Dubai will slash the municipality fee on sales at restaurants and hotels by 30%.

 

[bctt tweet=”Dubai has made plans to slash the municipality fee on sales at restaurants and hotels by 30%.” username=”foodics”]

 

Led by HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and chairman of the Dubai Executive Council, the move will see a reduction in the municipality fee from 10% to 7%.

 

In a tweet on 11 June, Sheikh Hamdan emphasised the importance of reducing the Dubai municipality fees at hotels and restaurants to “Enhance its (Dubai) position as a preferred destination for both investment and tourism.”

 

The decision comes after the Dubai Executive Council cut Dubai Municipality “market fees” by 50% in an effort to attract more foreign investment and support for businesses operating in the popular tourist destination.

 

 

[bctt tweet=”Dubai welcomed 15.8 million visitors in 2017, making it the fourth most visited city in the world. ” username=”foodics”]The emirate is set to draw in a forecasted increase of 20 million by the time the Expo 2020 commences.

 

“Our goal is to preserve these gains & consolidate our position as a competitive global destination,” he added.

 

With the introduction of the 5% Value Added Tax (VAT) cap on 1 January 2018, the reduction of municipality fees at Dubai restaurants and hotels will play a significant role in offering the Dubai Food and Beverage industry extra support in a competitive environment.

 

This will also have a knock on effect on conscious spending diners who 37% of chose to eat dinner out five to eight times a month, according to a 2017 KPMG report on the Food and Beverage industry in the UAE.