Dubai Launches New Plan to Boost Hotel Growth
Image used for illustrative purpose. Photo: WAM
Dubai: Dubai’s Department of Economy and Tourism has started a new plan to help investors build more hotels in the city’s fast-growing areas. This move comes after the approval of Executive Council Resolution No. 68 of 2025 by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai.
Under this plan, new hotels and resorts will get back 100% of the Dubai Municipality fee and the Tourism Dirham fee for two years after they open. The offer is for hotels located in Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands.
Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, said the new plan will help expand Dubai’s hotel network and keep tourism growing strong. He added that Dubai aims to stay one of the best cities in the world to visit, live, work, and invest in.
Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, said the plan will bring more investment into key areas like Dubai South, which is quickly growing with new homes and business projects.
Khalid Al Malik, Managing Director of Dubai Holding, said that Dubai’s success as a global city comes from its forward-thinking leadership and smart projects like this one, which attract investors and support long-term growth.
This incentive program is only for hotels that register after the new rule was issued. It is expected to bring more investors to Dubai’s tourism market, helping the city meet growing demand.
From January to August 2025, Dubai welcomed 12.54 million international visitors, a 5% rise from last year. During the same period, hotels recorded 29.03 million room nights with an occupancy rate of 78.5%, one of the highest in the world.
Investors must apply through the Dubai Department of Economy and Tourism and follow all licensing and classification rules. Hotels must open within three years after applying to receive the benefits.
For more details, investors can contact the Dubai Department of Economy and Tourism at +971 600 55 55 59.
