Dubai has launched a hotel incentive programme to attract investment in new tourism zones. The Dubai hotel incentive scheme offers full fee reimbursements for two years.
DUBAI: Dubai has announced a major new initiative to boost investment in its tourism sector by unveiling a hotel incentive scheme targeting fast-growing development zones. The Dubai hotel incentive scheme, launched by the Dubai Department of Economy and Tourism (DET), aims to strengthen the city’s hospitality offering and support the Dubai Economic Agenda D33.
Approved under Executive Council Resolution No. (68) of 2025, the scheme will offer 100% reimbursement on Dubai Municipality room fees and the Tourism Dirham for two years after the hotel begins operations. Eligible projects include hotels, resorts, and serviced apartments within Dubai South, Palm Jebel Ali, Dubai Islands, and Dubai Parks.
His Excellency Issam Kazim, CEO of the Dubai Corporation for Tourism and Commerce Marketing, called the initiative “a vital step in expanding Dubai’s hospitality ecosystem,” aligning with Dubai’s vision of becoming the world’s best city to live, work, and invest in. He said the programme reaffirms the city’s commitment to public–private partnerships and tourism diversification.
The initiative has been welcomed by key stakeholders including H.E. Khalifa Al Zaffin of Dubai South, who said the programme would stimulate greater investment in hospitality around new urban hubs. Khalid Al Malik, MD of Dubai Holding, added that this proactive move supports sustainable growth and economic diversification by attracting long-term foreign investment into high-potential areas.
The Dubai hotel incentive scheme applies only to new hotel projects licensed after the Resolution’s enactment. Hotels must begin operations within three years of application and remain compliant with classification and licensing rules under Decree No. (17) of 2013.
The new scheme follows a strong performance in Dubai’s tourism sector — with 12.54 million international overnight visitors and 29.03 million occupied hotel room nights recorded in the first eight months of 2025. The city’s average occupancy rate during this period stood at 78.5%, ranking among the world’s highest.
DET will oversee all application processes, reviews, and compliance monitoring. Interested investors can apply through official DET channels or contact +971 600 55 55 59 for further guidance.
