Dubai: Local emirates will need to offer 25-50 per cent subsidy for staff accommodation costs and utility companies waive off transfer fees for the UAE’s hotel industry to see off the pandemic.
There will also need to be an immediate waiver of all employment permit and visa charges, as well as of municipality and VAT payments as part of a multi-pronged effort to revive an industry pulverised by COVID-19 disruption and yet to make a sustained recovery.
And hotels must also be released from hosting "non-stranded guests who refuse to pay for their stay.
These form some of the recommendations a think-tank set up by Mashreq Bank has come up with. It had earlier issued one for the local retail sector.
Only by creating a permanent shift in the way business is done will the hospitality industry be able to create strong momentum during the medium term
Joel Van Dusen, Head of Corporate and Investment Banking Group at Mashreq Bank, said in a statement: “The regional hospitality sector already faces multiple headwinds, and the pandemic has only further impacted the industry with factors such as the global economic environment, struggling tourist numbers and oversupply.
"Despite this, there are numerous opportunities which can be leveraged to make the industry a more sustainable proposition. This report presents insights and recommendations that act as a stimuli for the industry to come together and rethink the existing model.
"Only by creating a permanent shift in the way business is done will the hospitality industry be able to create strong momentum during the medium term.”