Tourists at the Burj Khalifa. Chris Whiteoak / The NationalTourists at the Burj Khalifa. Chris Whiteoak / The NationalNightly hotel charge and municipal fees suspended along with host of further measuresHeadphonesBookmarkDubai has approved a Dh1.5 billion ($400 million) economic incentive package to support the city's business and tourism sector, at a time when demand has fallen due to the Iran war. The raft of measures includes suspending the nightly hotel tax, which is Dh20 ($5.45) in higher-tier hotels, and the 7 per cent municipal tax added to hotel and restaurant bills. It further sets out a range of exemptions for nurseries and private schools, including deferring fees and requirements. It is the second package to be announced by the government following a Dh1 billion relief fund announced in April.Overall the fund includes 33 initiatives relating to tourism, trade and logistics, real estate, construction, education, and arts and cultural activities. They will be implemented over a period ranging from three to 12 months, Dubai Media Office said on Thursday.“Dubai has built a distinguished model for adapting to change and turning challenges into opportunities,” said Sheikh Hamdan bin Mohammed, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence.“The close partnership between the public and private sectors places people first, and we continue to listen and respond to ideas and proposals that protect our achievements and ensure continued progress.”More to follow...Updated: May 21, 2026, 11:47 AMMost popular today12345678910