Dubai mulls new law for hotel service charge

16 May 2010

(MENAFN) A senior executive at the Dubai?s Department of Tourism and Commerce Marketing (DTCM) said that the emirate is considering implementing a new law to regulate the distribution of the 10 percent service charge hotels receive from guests, Arabian Business reported.

The official added that the draft of the law was submitted to the Ruler?s Court a year ago and was currently pending approval. However, she did not have any timescale as to when the law would be implemented and could not give any early indications as to what the law will contain.

In March 1999, a circular regarding service charges was issued to all hotels and hotel apartments from HH Sheikh Mohammed bin Rashid Al Maktoum, then Crown Prince of Dubai and chairman of the Department of Tourism and Commerce Marketing, but present Ruler of Dubai.

The circular said that hotels and furnished apartments may not levy service charges in excess of ten percent of the room rates, price of food and beverages, and other services.

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