Dubai Tourism Dirham Tax-Cause and Concerns

Three months back just after celebrating the New Year and delight to become the host of international event named World Expo in year 2020, Sheikh Hamdan bin Mohammed, Crown Prince of Dubai and chairman of the Executive Council announced to charge a fee as tourism tax from tourists visiting and staying in tourism rentals in the city.

What is Dubai tourism tax?

The tourism tax in Dubai is a small fee which will be applied per room, per night. Depending on the rank and hotel type the amount ranges from AED 7 (£1.17) to AED 20 (£3.33). All guests staying in all hotels, hotel apartments, guest houses and holiday homes are required to pay this fee with their bills. The new charge will roughly add total £23 to the total holiday cost in Dubai for a week. After being listed among United Nations World Tourism Organisation (UNWTO) top 10 fastest growing tourism hotspots for year 2013, it is clear that the city is receiving huge number of tourists throughout the year. Further, expo 2020 is expected to increase the total number of tourist to 20 million, which is double to the number of 2012.

Type of Hotel	Applicable Tourism Dirham Tax per night
Five-star hotels	AED 20
Four-star hotels	AED 15
Three-star hotels	AED 10
Deluxe Hotel Apartments	AED 20
Superior Hotel Apartments	AED 15
Standard Hotel Apartments	AED 10
One-star/budget hotels and Guest Houses	AED 7

Primary causes of implementing Dirham Tax in Tourism sector

According to estimates Dubai will have to bare total cost of Dh32bn for hosting the international event of World Expo in 2020. With total amount of Dh26bn for investment, rest of the amount is considered to be operating cost of this event.  Having considered the huge cost of this event, State Government decided to find some suitable way to fund this event. Tourism is the economical backbone and major earning sector of this emirate. After considering its earning potential, governmental authorities decided to earn little extra from tourism and formulate a new kind of fee as Tourism Dirham Tax. Their major aim is to fund the upcoming event. Further, Dubai Corporation for Tourism and Commerce Marketing DTCM ensure that the introduction of new fee is the significant help which will support emirate to maintain its competitiveness on global stage by nurturing two pillars of trade and tourism in the region. Estimates showed that total capital gains based on these figures will rise the revenue between Dhs140 million and Dhs400 million a year by 2020 if each tourist will stay in a hotel or short stay even only for a night.

The hospitality sector is not surprised after hearing this news as they are already aware that the same kind of tax is being charged in several other destinations across the globe. However, Dubai is facing criticism; experts mentioned that tourism tax is not expected to negatively affect the travel and tourism industry as the emirate has lot of things to offer along with year-round sunshine, white beaches and direct flights of seven hours to several important destinations across the world.  They also expect that investing the tax collected from visitors will further improve tourism sector in emirate. 

Concerns on Tourism Dirham Tax

Authorities tried their best to minimize any kind of negative impact over the tourism industry, they are not successful completely.  Despite its low amount, tourists are not happy with additional charges. It looks a small amount but it is actually an additional amount that will be charged daily basis. The tax may not affect those who are staying for shorter period of time but it can be a significant amount for visitors who are staying for longer time period.  It is expected that this will discourage tourists to stay longer in Dubai.

Official from hospitality consultancy mentioned in their discussions that Government implemented this  Tourism Dirham Tax just to provide sufficient fund for infrastructure developments which are planned forexpo 2020. Further DTCM has issued an official circular regarding the fee structure to all hotels. It has also been declared that Dubai hotels will be penalized and asked to pay the fine of total AED 15,000 if they do not implement the new fee with correct per night rate from March 31. The circular also mentioned that the tax must be specified in separate line on the bill. This will be an additional amount that every visitor needs to pay other than Municipality and service charges.  

Dubai lifestyle ranks it on top position

According to a global survey report made by Knight Frank, Dubai ranked on top position among other unbeatable competitors like Majorca, Cayman Islands and Madrid. The Emirate has got itself recognized as the best place to relocate for everyone looking for luxury lifestyle. Top quality education, good weather with more sunshine and a wide select of splendid leisure and eating outlets are the things enabling Dubai to become the best place to relocate. Their survey report was based on primary factors like availability of international schools, overall weather, and leisure and entertainment spots. 

This Emirate is on top for three categories of education, weather and leisure opportunities but for restaurants Hong Kong is on the top position in the list with 69 Michelin starred eateries in the e-British colony. Although, Dubai did not lead on top with its restaurants, it does not mean that restaurants in the city are not worth to visit. Currently, the city is striving to progress restaurants in city with opening new restaurants. Moreover, the nightlife scene is also progressing at considerable fast pace. After considering huge number of tourists and holiday makers visiting this city, local clubs arrange parties and beach festivals regularly to entertain visitors. 

Factors making Dubai a favorite place among expats

The political stability, modern traveling and dining facilities have made this emirate favorite place to relocate among different types of expats including families, retired couples and entrepreneurs. The city is equipped to offer best lifestyle with profitable investment opportunities for retiring couples. Additionally, the quality education and health facilities made it a perfect place for families. The great connectivity with major countries across the globe has made this city easily accessible for travelers. Dubai offers range of accommodation options from super luxury hotels and expensive villas to affordable Dubai apartments like studios and one bedroom apartments which are perfect for expats. Living a luxury lifestyle in desert is wonderful while opportunity to go for skiing is amazing.

Continuous struggle and strategic planning enable this Middle Eastern city to offer best life style amenities for its residents. While providing exciting entertainment and fun activities, the city becomes vibrant place for youngsters.

Business in Abu Dhabi

Abu Dhabi is the capital emirate of United Arab Emirates. The capital city has successfully made itself recognized among business and trade hub of Middle Eastern region, only because of combine efforts of State Government and developers. Outstanding growth of infrastructure, business and accommodation facilities attracts investors and entrepreneurs across the world to setup their businesses in Abu Dhabi. Whether you are thinking to establish new business or you are thinking to launch your franchise, Abu Dhabi can be a perfect place. Its strong stable economy, low crime rate with state of the art infrastructure facilities offers plenty of opportunities to grow your business. Government authorities implemented simple, clear and flexible rules to support foreigners who want to setup their businesses in the city of Abu Dhabi. In order to avoid any risks, it has suggested spending some time to understand legal and practical requirements for setting up your business in Abu Dhabi.  You must overview all business relevant legislations, procedures and local culture of city. Fresh business ideas and private enterprises are privileged like important assets in Abu Dhabi.

Starting Up Business in Abu Dhabi

Once you have decided to establish your business in Abu Dhabi, you must be able to efficiently define the nature of your business. It is also essential to know the basic requirements of your business. It will be very helpful if you have developed a proper business plan on your own before applying to governmental authorities. Good understanding with your business plan will help you to start up your business smoothly.

Business Environment in Abu Dhabi

Business environment in Abu Dhabi supports all local and foreigner investors and entrepreneurs without making any discrimination. Businessmen can take advantage of utilizing state of the art infrastructure, telecommunication, transportation, cargo and shipping amenities in the region. Moreover, emirates also develop free zone in specific areas that offer 100% ownerships rights with paying zero taxes on income and capital amount invested. In fact if you are a foreigner, who is setting up business outside these free zones, you will need to pay negligible percentage of tariff around 5%.

Strong economy and political stability

Abu Dhabi is among wealthiest cities and possesses very strong and stable economy. Secondly emirates political condition is also very stable. Stability in politics and economy are the two major factors responsible for progress in almost every business sector. Entrepreneurs from several Western countries and neighboring Middle Eastern countries are considering this emirate to establish their business and maximizing their profits.

Low Business operating cost and 100% compensation of Profits and Capital

If you compare the total cost of establishing and operating business in Abu Dhabi with Western countries you will find that total labor and operational cost is low. Whereas newly established free zones allow entrepreneurs to earn maximum profits with zero taxes.

Outstanding Human Resources and Government Services

Businessmen can take advantage of human resource skills of foreign experts working in Abu Dhabi. Secondly Abu Dhabi Chamber of Commerce and Industry also support new comers and provide helpful information to guide them. 

Abu Dhabi invests Dh 330 billion to boost up city in next five years 2013-2017

Having considered the magnificent progress of Dubai, the Crown Prince of Abu Dhabi his Highness General Sheikh Mohamed bin Zayed Al Nahyan, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Abu Dhabi Executive Council has taken strong initiative to build up city infrastructure and residential real estate developments to provide better accommodation facilities for its residents. Dh 330 billion has been injected to fuel development and construction projects in different sectors across the emirate for coming five years 2013-2017.

Primary initiative of funding citizens and developers is to increase the stability among society and its residents after offering them living space with complete accommodations. It is expected that new residential units will benefit total 689 in Abu Dhabi, among them all 756 in Eastern Region and 109 in the Western Region.

• Infrastructure and real estate projects to be completed in Abu Dhabi
• Abu Dhabi Executive Council has decided to carefully fund the huge amount of Dh 330 billion in different sectors to improve standard of living. They are not only focusing on housing rather they also consider investing in infrastructure, healthcare and educational sector. Below is the brief detail of sectors that are being invested.  Total 15.8 billion are allotted to construct new homes, hospital and sewage plant.
• 1554 citizens of Eastern and Al Gharbia region will receive the total loans of Dh 3.1 billion. With this loan they are allowed to construct their house.
• In addition to housing, Dh 4.3 billion are also invested in a new hospital project in Al Ain. Funds have been commissioned to the Abu Dhabi Health Company (Seha). After completion the hospital will execute needs of growing population of capital emirate. With 719 beds, the facility will be well equipped to offer surgery, children, maternity, intensive care and medical rehabilitation services. Moreover, royal suites will serve VIP patients. With 104 specialist clinic, 17 radiology units, CT scan, MRI and 22 endoscopy diagnosis units, the hospital is expected to be providing modern health facilities for everyone.
• Remarkable infrastructure project that are being funded include sewage treatment plant, roads, motorways and airports.
• Dh 132 billion have been invested to build a sewage water treatment plant to serve the residents of Al Ruwais in the Western Region. Abu Dhabi Sewage Company has been allotted this project. With total capacity of 15,000 cubic meters a day, the plant has a receiving station with the capacity of 16 tanks and 10 kilometers pipeline that will transfer treated water to forest reservoirs in Al Ghayathi. Hopefully the treatment plant will help saving and reusing water for irrigation and other industries. It is expected that it can efficiently meet the growing needs of rapidly expanding industrial zone. Additionally plant has complete monitoring system to remove bad odours.

• To further improve the roads and transportation system in the emirate, 15 upper intersections, electricity posts and lights will be added on 248km-road to the Westren Region or Saudi Arabia and on a new road connecting Khalifa Port with the industrial zone and Al Falah. This will greatly reduce the number of accidents. Moreover, high voltage cables are removed that intersect 62km Abu Dhabi-Dubai motorway from Saih Sheib to Sweihan Road. Other road and transport projects that are due to be completed are Al Mafraq-Al Ghuwaifat road. They have been funded with total amount of Dh 2.5 billion.

The massive financial allocation has been done to help capital projects that are due to be completed in five years of 2013-2017. The huge amount of Dh 330 billion has been carefully invested in different sectors to achieve the objectives of Abu Dhabi vision for 2030. 

UAE the expat’s paradise

Being noticed with its unusual mix of population of expats and locals, United Arab Emirates has gained the status of expat’s paradise. Nearly 80% of the residents are expats and belong to other countries like India, Pakistan and UK. UAE emirates preferred by expats are Dubai, Abu Dhabi and Sharjah. The country is capable to offer business and work opportunities in different sectors like real estate, construction, finance, tourism and trade sectors.

What UAE offers?

Beautiful beaches, bustling city life with state of the art life style amenities and luxury accommodation are what UAE is best at. Living can be little expensive in some areas of the country but still it’s easy to enjoy luxury life style amenities as compared to countries like UK or USA. As you don’t need to pay any taxes on earnings and luxuries you are consuming. The country allows every expat to enjoy lifestyle amenities that they may not afford in their home countries. Most of the buildings are fitted with air conditioning system which makes living comfortable in UAE during scorching temperatures of 50°C in summer.

Professional financial benefits of living in UAE

Although, the global economic recession of year 2008-2009 has badly hit the country, especially the hub city of Dubai, UAE has regained its momentum and showing good progress in business, trade and investment sectors. It is nice that you have decided to move this Arab country for finding better job opportunities. Working here will not only allow you to improve your career and standard of living rather it will also enable you to network with other professional expats. This may help you to find better employment opportunities even outside UAE. Besides this, the country also proffers unmatched financial benefits via zero taxes on earnings and profits. No income taxes and tax free shopping enables expats to save money.

Leasing and Buying Assets in UAE

However, UAE property market has huge supply of residential and commercial properties, property rents are high. As most of the apartments, villas and houses are purposefully constructed and equipped to provide luxury living space. Most of the buildings are fitted with air-conditioning system due to high temperatures during summer’s season. Size, location and amenities primarily decide rents. Most of the residential units are available with maintenance services that further increase rents. Initially foreigners were not supposed to buy assets in UAE, what they were allowed to do is leasing a residential or commercial property for their accommodation or to establish their business. After considering interest of foreigners in region’s real estate, northern emirates like Dubai and Sharjah started offering freehold properties in specific areas.  Foreigners who have fully paid for the property they have purchased will get permit to live in UAE. Soon after the inception of Freehold property law, a significant rise has been observed in real estate investments.

UAE the happiest Arab place to live

According to the second World Happiness report issued by United Nations, UAE has been ranked on first position among Arab countries and globally ranked on 14^th position. The report is based on basic factors like GDP per capita, economic growth, healthcare, freedom to make choices and public awareness with corruption. The country is very well known for sunny beaches, zero taxes and wealthy residents. Despite these allures, the country has numerous other things to offer for everyone living and visiting the city. Negligible crime rate, obtainable luxury lifestyle and profitable business and investment opportunities are the real reasons making United Arab Emirates happiest Arab country.

These are the few reasons fostering UAE’s image as a great place to live among expats across the world. Those who want to explore career and luxury lifestyle amenities could easily find better life in leading emirates of Dubai and Abu Dhabi.

Pros of Choosing Self Catering Holiday Rentals

Perhaps you are planning to go abroad to spend your vacation away from your home land. Irrespective to the holiday destination you have chosen to spend your vacation, finding a suitable accommodation within your budget is the primary concern for you. It’s necessary to estimate the amount you essentially need to spend over accommodation.  It has observed that no one is willing to pay huge money on accommodation, especially if the budget is limited. Hotels and resorts are the common options providing complete accommodations of routine life. Anyone can book a room or suite for their short stay, such short stays can be rented from few hours to few days. It can be costly if you are on family trip and travelling with group of friends.  In case you are travelling in a group it’s good to find some self catering holiday rentals for your stay. Villas, cottages, serviced apartment and hotel apartments are few examples of self catering holiday rentals, which are capable to provide living space at much affordable cost as compared to hotels.  Different types of holiday rentals are being constructed to execute diverse accommodation needs of travellers and holiday makers.

Top 3 Resorts in Dubai

A trip to liberal and luxurious city of Dubai during the holidays can be the dream of every person. Dubai is completely revolutionized into modern city from a little town. The advanced lifestyle and the services provided in city are simply amazing.

The golden city has become a landmark of architectural wonders. Huge skyscrapers and lavish urban life of the town attract foreigners. Magical shopping malls are backbone of the city. Dubai lavish hotels and resorts are the beauty icons. Dubai famous resorts are the attractions of the city, that can’t find anywhere in the world. Resorts of the city offers great destination. All the local and foreigners visitors of the resorts enjoy the excessive services and natural beauty. There are number of resorts located in Dubai. According to me here are top three resorts of Dubai.