Dubai aims to encourage more mid-market hotels by providing a financial development incentive.
Dubai Tourism and Commerce Marketing (DTCM) will grant three and four star hotel operators a concession on the standard municipality fee, Arabian Business reported.
Investors in these properties will be granted a four year waiver on the fee from the date the permit to construct is granted, provided this falls between 1 October 2013 and 31 December 2017.
The standard municipality fee is 10 percent and is levied upon the daily room rate.
“In order to achieve our headline objective of 20 million visitors per year by 2020, we need to both increase the overall stock of hotel rooms in Dubai and widen the range of options for visitors,” DTCM director general Helal Saeed Almarri said.
“In recent years the number of three and four star establishments has increased, but it’s vital that we continue to engineer the growth of this range.”
Tourism authorities in the Emirati, which is traditionally occupied by luxury properties, hope the initiative will bring forward construction timelines for new mid-market hotels.