Dubai Tourism introduces hotel investment incentives

Dubai Tourism has launched a new incentive programme aimed at accelerating hotel development in the emirate’s fast-expanding districts.

 

Under the new scheme, qualifying hotel investors will be reimbursed 100% of Dubai Municipality room sales fees and the Tourism Dirham fee for a two-year period post-opening. 

 

The incentive targets new hotels, resorts and hotel apartments in high-growth locations including Dubai South, Palm Jebel Ali, Dubai Parks and Dubai Islands.

 

Eligibility is limited to properties registered after the implementation of Executive Council Resolution No (68). 

 

Dubai’s Department of Economy and Tourism (DET) said the initiative is designed to further strengthen the city’s hospitality infrastructure and support growing demand from international and regional visitors.

 

Recent figures show sustained momentum, with Dubai attracting 12.54 million overnight international visitors in the first eight months of 2025, a 5% year-on-year increase following two consecutive years of record tourism growth.

 

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During the same period, the city’s hotels recorded 29.03 million occupied room nights, up 4% year-on-year, pushing occupancy rates to 78.5%. This marks a two-percentage-point increase compared to the same period in 2024, placing Dubai among the world’s best-performing hospitality markets.

 

Dubai Corporation for Tourism and Commerce Marketing CEO Issam Kazim described the introduction of the new scheme as a pivotal step for the sector. 

 

“This new programme is a testament to our ongoing efforts to further enhance our world-class infrastructure and expand our diverse accommodation portfolio, supporting our goal of making Dubai the best city to visit, live, work and invest in."

 

Khalifa Al Zaffin, Executive Chairman of Dubai Aviation City Corporation and Dubai South, commended the scheme, citing its potential to attract wider investment into areas such as Dubai South, where large-scale residential and commercial projects are underway.

 

This includes Al Maktoum International Airport (DWC), which is currently undergoing a major Dh128 billion (US$35 billion) expansion set to make it the largest airport in the world once fully completed. 

 

For more information, visit dubaidet.gov.ae