Dubai Launches Hotel Incentives to Boost Tourism Growth

Dubai is stepping up its efforts to expand its hospitality landscape with a new incentive program designed to attract hotel investors to high-growth areas across the city. The initiative comes after His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum approved Executive Council Resolution No. (68) of 2025.

Under this program, new hotels, resorts, and hotel apartments in targeted zones such as Dubai South, Palm Jebel Ali, Dubai Parks, and Dubai Islands will receive 100% reimbursement of Dubai Municipality fees on room sales and the Tourism Dirham for two years after opening.

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The initiative is expected to drive private-sector investment and strengthen Dubai’s tourism ecosystem. Hotel establishments must meet licensing and classification requirements, start operations within three years, and continue to meet conditions throughout the benefit period.

In 2025 alone, Dubai has welcomed over 12.5 million international overnight visitors, marking a 5% growth from the previous year. Occupancy rates have also risen, with hotels recording nearly 29 million occupied room nights and maintaining a rate of 78.5%, one of the highest globally.

By incentivizing hotel development in emerging areas, Dubai aims to maintain its strong tourism momentum, diversify accommodation offerings, and support its economic agenda under D33. Investors interested in applying for the program can contact the Dubai Department of Economy and Tourism to submit applications and follow approved procedures.

This strategic move highlights Dubai’s commitment to creating an integrated hospitality and economic ecosystem, ensuring the city remains a top destination for tourism, business, and international investment.