Dubai To Tax Tourists To Finance Expo 2020
by Lorys Charalambous, Lowtax.net, Cyprus
06 February, 2014
Dubai is going to introduce a tax on tourist accommodation in order to raise funds for the World Expo 2020 projects, the director general of Dubai Tourism and Commerce Marketing (DTCM), Helal Saeed Al Marri, announced recently.
The tax, called the Tourism Dirham, will come into force on March 31, 2014 and will apply to hotels, hotel apartments, guesthouses and holiday homes.
The rate will be between AED7 and AED20 per room per night (USD1.9 to USD5.4), depending on the type of accommodation and its rating. Saeed Al Marri said that the revenue from the tax will be used to finance the promotion of Dubai, with the aim of boosting tourism and international trade.
The World Expo 2020 is expected to cost USD8.8bn, with funds coming mainly from the government and foreign investment. It is not yet clear what part the hospitality industry will play in project financing, but the DCTM has promised to reveal more details over the coming few days.
The emirate has said previously that it hopes to attract 20 million visitors by 2020, double the number in 2012.
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