New hotel law for Dubai a possibility

May 15 - Dubai may implement a new law that regulates the distribution of the 10 per cent service charge that hotels get from guests. The law is in the pipeline and being drawn up by Dubai’s Department of Tourism and Commerce Marketing (DTCM). "We are preparing a law explaining how to distribute the ten per cent service charges gross amount among the workers at the hotels and hotel apartments," said Suzan Odeh, senior coordinator in the legal affairs section of DTCM, Dubai.

Odeh added that the draft of the new law was submitted a year ago to the ruler’s court and is still pending approval. However, she did not say when the law would be implemented and did not provide any further details about it either.

In March 1999, a circular regarding service charges was issued to all hotels and hotel apartments from Sheikh Mohammed bin Rashid Al Maktoum, then the Crown Prince of Dubai and chairman of the Department of Tourism and Commerce Marketing. According to the circular, "hotels and furnished apartments may not levy service charges in excess of ten percent of the room rates, price of food and beverages, and other services."

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