Dubai makes it easier to build hotels ahead of Expo 2020

The Novotel hotel decorated with plants,on Sheikh Zayed Road in Dubai. Jaime Puebla / The National

Dubai has introduced a series of reforms aimed at speeding the delivery of new hotels as it prepares to host as many as 25 million visitors during Expo 2020.

The emirate has cut the duration of the pre-approval process by two-thirds for private developers to build hotels, according to a statement by Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai.

It used to take up to six months, but now has been reduced to two months. Fees levied for “change-of-use of land” for hotel usage have also been scrapped.

An exemption to the 10 per cent Dubai Municipality fee was also given to any new three and four-star hotels that begin operating before June 2017.

Government land will be allocated and additional incentives will be provided for the development of three and four-star hotels that “Dubai will need by 2020”, to meet the expected surge in tourists and visitors, the statement said.

Rising visitor numbers and improving room rates have encouraged the resumption of hotel construction throughout the emirate, with more than 1,000 new rooms delivered in the last three months of 2013, according to data from Jones Lang LaSalle, the property company.

Openings included the Mövenpick Hotel Jumeirah Lakes Towers, Novotel Al Barsha and the expansion of the Millennium Airport Hotel.

Some 5,500 additional rooms are planned this year including the Sofitel Dubai Downtown, the InterContinental Dubai Marina, the DoubleTree Hilton Al Barsha and the second phase of the JW Marriott Marquis in Business Bay.

Dubai expects to attract as many as 25 million visitors between October 2020 and April 2021 – with some 17.5 million of them coming from abroad to attend the Expo.

As Dubai International Airport nears its capacity, routes are already being transferred to Al Maktoum International, which is expected to manage the bulk of the passengers coming to Dubai for the international event.

Other regulations introduced yesterday include the streamlining of pre-approval processes of hotel construction by Dubai Municipality. Approvals for hotels in Dubai’s free zones will also be transferred to the municipality, the statement said.

“A one-stop-shop for all sector approvals to be created– a single streamlined system will be managed by Dubai Municipality to help reduce red tape for businesses and ensure the new reduced approval time frames are met.”