Abu Dhabi cuts fees to boost tourism, hospitality sectors

The Louvre Abu Dhabi Museum has been dubbed the ‘jewel in the crown’ of the emirate’s tourism push. (Shutterstock)
Updated 13 March 2019
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Abu Dhabi cuts fees to boost tourism, hospitality sectors

  • The capital of the United Arab Emirates is investing billions of dollars in industry, infrastructure and tourism to diversify its economy away from oil
  • ‘The tourism sector is a key alternative to oil,’ said Saif Saeed Ghobash, undersecretary of Abu Dhabi’s tourism department

ABU DHABI: Abu Dhabi has reduced tourism-related fees to help the ailing hospitality sector and attract more visitors as the oil-rich emirate looks to diversify its economy.
The Department of Culture & Tourism (DCT) said on Tuesday it has reduced tourism fees from 6 to 3.5 percent, municipal fees from 4 to 2 percent and municipality hotel room fees per night from 15 dirhams ($4) to 10 dirhams.
The capital of the United Arab Emirates is investing billions of dollars in industry, infrastructure and tourism to diversify its economy away from oil.
Abu Dhabi is home to the Formula One Etihad Airways Abu Dhabi Grand Prix, the Louvre Abu Dhabi, the Warner Bros. world-themed indoor park and other attractions.
Two more museums, the Guggenheim and the Zayed National Museum, are being built.
Neighboring Dubai welcomed a record 15.9 million tourists last year compared with Abu Dhabi’s 10 million hotel guests in 2018.
The move to reduce the fees came on the back of a study on Abu Dhabi’s hotels conducted by the DCT.
“The tourism sector is a key alternative to oil,” said Saif Saeed Ghobash, undersecretary of DCT. “It is necessary to support this sector as it experiences difficulties to allow it to contribute to the achievement of future goals.”
The financial impact of the reduction in fees would be 1 billion dirhams over the next three years, he said.
DCT also plans to spend 500 million dirhams over the next three years toward marketing the emirate and attract tourists, as part of the Abu Dhabi government’s accelerators program called Ghadan 21.


No need for more talks over draft budget: Lebanon finance minister

Updated 21 May 2019
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No need for more talks over draft budget: Lebanon finance minister

  • Lebanon’s proposed austerity budget may please international lenders but it could enrage sectors of society
  • Lebanon has one of the world’s heaviest public debt burdens at 150 percent of GDP

BEIRUT: Lebanon’s finance minister said on Tuesday there was no need for more talks over the 2019 draft budget, seen as a vital test of the government’s will to reform, although the foreign minister signalled the debate may go on.
The cabinet says the budget will reduce the deficit to 7.6% of gross domestic product (GDP) from last year’s 11.2%. Lebanon has one of the world’s heaviest public debt burdens at 150% of GDP.
“There is no longer need for too much talking or anything that calls for delay. I have presented all the numbers in their final form,” Finance Minister Ali Hassan Khalil said.
But Foreign Minister Gebran Bassil suggested the debate may go on, telling reporters: “The budget is done when it’s done.”
While Lebanon has dragged its feet on reforms for years, its sectarian leaders appear more serious this time, warning of a catastrophe if there is no serious action. Their plans have triggered protests and strikes by state workers and army retirees worried about their pensions.
President Michel Aoun on Tuesday repeated his call for Lebanese to sacrifice “a little“: “(If) we want to hold onto all privileges without sacrifice, we will lose them all.”
“We import from abroad, we don’t produce anything ... So what we did was necessary and the citizens won’t realize its importance until after they feel its positive results soon,” Aoun said, noting Lebanon’s $80 billion debt mountain.
A draft of the budget seen by Reuters included a three-year freeze on all forms of hiring and a cap on bonus and overtime benefits.
It also includes a 2% levy on imports including refined oil products and excluding medicine and primary inputs for agriculture and industry, said Youssef Finianos, minister of public works and transport.
“DEVIL IN THE DETAIL“
Marwan Mikhael, head of research at Blominvest Bank, said investors would welcome the additional efforts in the latest draft to cut the deficit.
“There will be some who claim it is not good because they were hit by the decline in spending or increased taxes, but it should be well viewed by the international community,” he said.
Jason Tuvey, senior emerging markets economist at Capital Economics, said: “The numbers will be of some comfort to investors, but the devil will be in the detail.”
“Even if the authorities do manage to rein in the deficit, it probably won’t be enough to stabilize the debt ratio and some form of restructuring looks increasingly likely over the next couple of years,” Tuvey said.
The government said in January it was committed to paying all maturing debt and interest payments on the predetermined dates.
Lebanon’s main expenses are a bloated public sector, interest payments on public debt and transfers to the loss-making power generator, for which a reform plan was approved in April. The state is riddled with corruption and waste.
Serious reforms should help Lebanon tap into some $11 billion of project financing pledged at a Paris donors’ conference last year.
Once approved by cabinet, the draft budget must be debated and passed by parliament. While no specific timetable is in place for those steps, Aoun has previously said he wants the budget approved by parliament by the end of May.
On Monday, veterans fearing cuts to their pensions and benefits burned tires outside the parliament building where the cabinet met. Police used water cannon to drive them back.