Hotel pre-approval in Dubai reduced to two months
Measure is part of new directives issued by Sheikh Mohammed
New directives have been announced by the Ruler of Dubai, UAE Vice President and Prime Minister, His Highness Sheikh Mohammed bin Rashid Al Maktoum, surrounding hotel investment in the Emirate.
This includes a reduction in the pre-approval process for hotel construction to two months - currently the process for private developers ranges from three to six months.
There will be a one-stop-shop created for all sector approvals. The single streamlined system will be managed by Dubai Municipality in an attempt to cut red tape and reduce approval timeframes.
The approval processes of planning permission for all hotels in the Emirate will also be standardised through Dubai Municipality - currently some free zones manage their own building regulations approvals processes for hotels in areas across Dubai.
Government land is to be allocated for the development of three-star and four star hotels - Dubai Municipality and government-linked master developers will work with Dubai’s Department of Tourism and Commerce Marketing (DTCM) to identify key locations for hotels at favourable investment terms.
And additional incentives are to be offered to help ensure the development of the additional three and four star hotels that Dubai will need by 2020 to meet the growth in visitor numbers. These include: No fees on change-of-use of land for hotel usage, and the establishment of a special committee to review the re-zoning of plots; and an additional year of exemption of the 10% Dubai Municipality fee for any three and four star hotels which begin operating before June 2017, based on the Hotel Incentive initiative announced by DTCM in September 2013.
His Excellency, HE Hussain Lootah of Dubai Municipality, said: “In partnership with public and private sectors, we will identify opportunities for streamlining in the hotel development sector, and work together to address them. Our aim is to continue Dubai’s journey; to further progress from our position as the region’s leading tourism and business destination to being recognised as a global leader in trade and tourism. To achieve this, we will demand and help our partners to deliver world-class buildings standards and to create an environment of high quality, sustainable growth.”
The directives were made in response to recommendations raised by Dubai’s private sector developers during a consultation workshop organised and hosted by DTCM and Dubai Municipality and attended by representatives of key investors in the hospitality sector including Al Habtoor Group, Al Futtaim Group, Al Ghurair Group, Rotana Group, Dubai Holding and Emaar.