Abu Dhabi to introduce two new hotel taxes

Two new taxes have been introduced in Abu Dhabi, which hotels in the capital will have to abide by.

The news comes following the recent announcement that the government will introduce Value Added Tax (VAT) across the UAE by 2018. 

Abu Dhabi has imposed a 4% municipality tax, as well as a $4 (AED15) charge per night, on hotel bills in the capital, according to a report by sister publication Arabian Business. 

The National, quoting sister paper Al Ittihad, reported that the fees would be collected by the Abu Dhabi Tourism and Culture Authority. Hotels in the city already charge a city tax of 6% and a 10% service charge.

The newspaper said it was not yet clear whether the new fee would be applied to all customers or just guests.

Just over four million guests stayed in the UAE capital’s hotels last year, staying over 12 million nights. The National estimated the potential revenue from the new fees, based on those figures, at $122 million.

Visitor numbers to Abu Dhabi rose by 18 percent last year.