Dubai’s tourism scene is about to witness a new initiative. Dubai has launched a brand-new incentive programme for hotels. Basically, it means encouraging hotel development in key areas of Dubai. The idea is simple: the more hotels built will attract more visitors, which will boost tourism in the region.
Dubai’s Big Push for New Hotels And How The Incentive Works
The Dubai Department of Economy and Tourism (DET) launches a new incentive programme for investors designed to stimulate hotel development in future high-growth areas in the city including Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands. Under the initiative,… pic.twitter.com/cNgO1u75oi
— Dubai Media Office (@DXBMediaOffice) October 21, 2025
According to a report by The National, the key areas include Dubai South, Palm Jebel Ali, Dubai Parks, and the Dubai Islands. Hotels that open in these areas can get two years of reimbursements on Dubai Municipality room fees and the Tourism Dirham, which is the extra charge guests normally pay. But not every hotel qualifies for incentive system. Only those registered after the official Executive Council resolution can apply.
The Dubai Department of Economy and Tourism is in charge of reviewing applications. It will follow the set protocol of checking all the mentioned conditions to ensure the hotels are ready to host guests within three years.
Boom In The Tourism Sector
Dubai’s tourism scene is on fire. In just the first eight months of 2025, the city welcomed a whopping 12.54 million international overnight visitors, which is 5% more than the same period last year. Hotels didn’t miss a beat either, recording 29.03 million occupied room nights and pushing occupancy up to 78.5%, a solid 2% jump from 2024.
Big Projects On The Horizon
Palm Jebel Ali is going to be the next gem of Dubai’s tourism scene. With 80 hotels and resorts, leisure spots, green spaces, and shopping areas all spread across 13.4 square kilometres, this place will be a haven for tourists. After construction, the coastline will stretch an extra 110km, offering beachside living for 35,000 lucky residents. Dubai’s new Al Maktoum International Airport is getting a brand-new passenger terminal. Post its completion, it’s set to become the world’s largest airport in terms of capacity.
Also Read: Green Diwali: 7 Eco-Friendly Hotels In Dubai To Celebrate This Festive Season
What’s In For Visitors and Investors
Travellers are in for more luxurious stays, unique experiences, and unforgettable destinations. For investors, it’s a golden opportunity with the added comfort of government support and fee reimbursements.
At its core, Dubai’s hotel incentive programme is about growth, innovation, and global positioning. The emirate is doubling down on its reputation as a top travel hub while encouraging responsible, strategic development in new areas.
Cover Image Courtesy: CanvaPro/Leonid Andronov
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