Hotel Fees Reduced in Abu Dhabi

by News Desk 1 year ago Hospitality GCC Wealth Funds

Leading GCC Wealth Funds

Abu Dhabi strategically decided to reduce government fees on hotels, aligning with its long-term goals to leverage the tourism sector's potential. The Department of Culture and Tourism — Abu Dhabi (DCT — Abu Dhabi) recently announced these changes, which are scheduled to be implemented from September 1. The move aims to make hotel stays in Abu Dhabi more affordable while reinforcing the emirate's position as a hub for tourism and culture. This initiative also provides additional support to the flourishing hospitality industry. S&P Global Market Intelligence's report on sovereign wealth funds in the GCC brought attention to Dubai's Burj Khalifa, which has earned the title of the world's most visited landmark. With an impressive annual visitation of 17 million, the iconic structure generates $621 million annually from ticket sales alone. Additionally, Burj Khalifa boasts over 22 million Google searches and more than 7 million hashtags on Instagram.

Analyzing search volumes and average visitor figures for over 150 renowned landmarks worldwide, Switch On Business ranked Burj Khalifa at the top, followed by landmarks like the Taj Mahal, Niagara Falls, and the Eiffel Tower. Abu Dhabi's hotels experienced a significant uptick in performance, welcoming 2.4 million guests in the first half of 2023—a remarkable 34% increase compared to the same period the previous year. During this time, hotel revenues in the emirate exceeded AED3 billion, marking a substantial 26% growth. The average hotel occupancy rate was 70%, with guests staying an average of 2.7 nights. Abu Dhabi International Airport also reported a substantial increase in passenger traffic, recording a 67% rise with 10,258,653 passengers in the first six months of 2023.

Aligned with these positive developments, the UAE Tourism Strategy 2031 aims to attract tourism investments totalling AED100 billion and host 40 million hotel guests. These endeavours underscore Abu Dhabi's commitment to fostering a robust tourism sector and capitalizing on its economic and cultural potential.

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