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Aruna Mukherji - Associate - Real Estate
Further clarifications have now been issued by the Department of Tourism and Commerce Marketing (“DTCM”), and we have taken the opportunity to report on these below.
The DTCM have held various workshop sessions for hotel industry finance personnel to introduce DTCM’s dedicated team who will be supporting the implementation of the Tourism Dirham Fee. Attendance at the sessions is mandatory and is required in order to acquire an ‘Administrative Account Number’ for each establishment, which will be registered on DTCM’s system.
(A) Executive Council Resolution No. 2 OF 2014
As mentioned in the March edition, Executive Council Resolution No. 2 of 2014 introduced the Tourism Dirham Fee in Dubai (“ECR 2 of 2014”) which is applicable to all hotel establishments operating in Dubai, including hotel apartments, holiday homes, and any such establishments which are located in special development zones and free zones such as DIFC.
The Tourism Dirham Fee is payable for each night of occupancy per room in accordance with Schedule 1 of the ECR 2 of 2014. We have provided a summary of ECR 2 of 2014 as follows:
(B) DTCM Circulars
Since the issue of ECR 2 of 2014, three circulars have been issued by DTCM to clarify certain matters, and to introduce guidelines for implementation of the scheme.
The key issues addressed by these Circulars can be summarized as follows. The Tourism Dirham Fee:
– any late checkout extension (even if a fee for same is charged by the hotel); or
– a room which is not classified by DTCM to be rented to guests as part of the hotel establishment’s inventory (ie. rooms designated as accommodation supplied by the hotel to its own employees that are registered under the hotel trade licence).
For your information, we have provided more detailed summaries of the Circulars below:
(1) Circular no. D/000/152/187 dated 23 February 2014 (“Circular 1”)
Circular 1 provides the guidelines for the implementation of the Tourism Dirham Fee together with a form of notice which has been approved by the DTCM for use by hotels to provide to their guests at the time of check-in.
(2) Circular No. D/000/152/187/1 dated 30 March 2014 (“Circular 2”)
Circular 2 provides clarity on the following two matters namely:
(3) Circular No. D/000/152/187 dated 26 March 2014 (“Circular 3”)
Circular 3 announced the formation of the dedicated team at DTCM and the dates of those workshops which shall take place on the implementation of the Tourism Dirham Fee.