By July 1, 2018, all services at hotels and restaurants serving alcohol will be slashed.

 

Dubai has made plans to slash the municipality fee on sales at restaurants and hotels by 30%. Click To Tweet

 

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 the new decree 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.

 

 

Dubai welcomed 15.8 million visitors in 2017, making it the fourth most visited city in the world. Click To TweetThe 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 reduced fees 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.