New strict rules on the serving of shisha at hotels in Dubai are set to come into effect on January 1, with only four- and five-star properties set to be allowed to offer it.

According to Khaleej Times, hotels with one to three stars ratings are to be banned form serving shisha by Dubai Municipality’s Public Health and Safety Department.

Furthermore, hotels will have to apply for a permit to serve shisha, and will only be able to offer it in open spaces, such as outside the hotel or on the rooftop.

After an initial grace period, fines starting from AED10,000 (US $2722) will be imposed on hotels violating the rules. Fines will rise to AED20,000 (US $5444) for second time violations, with the next step being to freeze trade licenses and visas.

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“December 31 will be the last day for hotels to serve shisha without getting permit,” Dubai Municipality’s Public Health and Safety Department director of the Department Marwan Al Mohammed told Khaleej Times.

“All four and five star hotels should also get a new permit for offering shisha service as there are new conditions to be met as per the law.

Dubai’s Department of Tourism and Commerce Marketing is set to provide hotels with details on the new regulations, which will also affect restaurants and cafes in hotels.