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Lower fees to save hotels millions of dirhams

Industry likely to see savings of around Dh660m from reduced fees

Gulf News

Just how much money the fee reduction will save the UAE hospitality industry is difficult to determine. Figures for 2016 and 2017 were not readily available, but Euromonitor International estimated that in 2015, total hospitality revenue would reach Dh26.8 billion ($7.3 billion).

In January, STR estimated that revenue per available room in the UAE stood at Dh450, with 132,000 rooms available. Roughly speaking, that would place a 2017 revenue for the industry at about Dh21.6 billion. Based on that figures, the charge of 7 per cent, down from 10 per cent, would save the industry Dh660 million.

Hospitality revenue in the UAE is expected to reach $9.8 billion in 2020, the year the Expo 2020 will open, according to investment bank Alpen Capital.

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