Dubai: Eating at posh restaurants often comes with a hefty price tag, and that does not exclude the most basic human need — drinking water. The huge price difference in bottled water sold in cafes, restaurants and hotels has been a concern for Dubai residents.
Gulf News on Tuesday began a three-part series to examine the issue and determine why a commodity as basic as bottled drinking water is priced differently at different establishments.
On Tuesday, we looked at how much residents pay for bottled water and what they do to avoid spending so much money when dining out.
- Mohammad Ali Rashid Lootah | CEO, Commercial Compliance and Consumer Protection, Dubai Economy
Today, Gulf News speaks to Dubai Economy on the pricing of bottled water and why there is a wide gap in different establishments.
According to Mohammad Ali Rashid Lootah, CEO of the Commercial Compliance and Consumer Protection (CCCP) sector in Dubai Economy, the disparity in prices of bottled water exists because of the nature of the market.
“The market is open to competition and consumers have a vast variety of choices,” Lootah told Gulf News in a statement.
As for placing a limit to how much mark-up a cafe, restaurant or hotel may place on bottled water, Lootah said, “No such cap is planned as it is an open market.”
“There are costs that investors incur, such as rent, decorations, ambience, entertainment etc. In any market globally, people pay for the experience,” Lootah said.
“The price of drinking coffee in a prime location with a prime view and rent cannot be compared to the price of a coffee in a very basic outlet. The same water bottle mentioned in the question may be available for a dirham or a little more in a supermarket. So long as different options are available, the consumer can choose what suits him/her.”
Fixing prices falls under the purview of the Ministry of Economy. The CCCP sector, however, can check if there are disparities in prices, but only to a certain extent.
“Price limits on water bottles are only for hypermarkets/supermarkets. Prices at restaurants, cafes, and other outlets vary because consumers always have the option of buying water from other sources and the market is having a healthy competition,” Lootah said.
“Consumers can complain if they feel they are being overcharged in hypermarkets and supermarkets but not in the case of restaurants and cafes, unless the price doesn’t match what is printed on the menu.”
When asked about making “house water” or complimentary drinking water available in Dubai, Lootah said this cannot be imposed and should be a decision restaurant owners make on their own.
“In many countries, complimentary house water is provided by restaurants voluntarily. Similarly, some restaurants in Dubai provide appetisers, dessert et cetera for free too. This is up to the restaurant or coffee shop so long as it doesn’t violate any law.”
