Dubai to regulate holiday home market
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has issued Decree No. 41 of 2013, concerning the regulation of the holiday homes market in Dubai.
With the objective of contributing to the growth of the tourism industry by broadening the range of accommodations available to visitors, the decree dictates that Dubai’s Department of Tourism and Commerce Marketing (DTCM) will be responsible for the granting of licenses to those parties who intend to rent out a furnished residential property on a daily, weekly or monthly basis, the Dubai Media Office said.
The decree dictates that DTCM will define the standards that must be met and procedures that must be followed in order to receive a licence; accept licence applications and approve or deny such applications; conduct inspections on the properties to ensure they meet the required standards; and create a database of all such licensed establishments in the emirate.
Restrictions will be placed regarding in which areas of the emirate licenses will be granted and two new classification standards will be added to the existing framework, with Holiday Homes being classified as either Standard’ or Deluxe’.
Helal Saeed AlMarri, Director General of DTCM, said:”The regulation of the renting of properties as holiday homes will have a considerable positive impact on two of Dubai’s key industries ?tourismand real estate.
“With regards to tourism, in order to achieve the target of welcoming 20 million annual visitors to Dubai by 2020, one priority is the supply of visitor accommodation and broadening the range of accommodations available is a major part of this. We are working with the private sector to bring more five star hotels to the emirate and in September of this year, DTCM announced a financial incentive for the development of new three and four star hotels. Now, under the directive of Shaikh Mohammad, the licensing of properties as holiday homes will add further accommodation options.
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