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Tourism Dirham and Holiday Home Fees in Dubai

How the Tourism Dirham works for holiday homes, what else a guest may pay, and where VAT fits in, including Dubai's 2026 fee relief.

Updated 30 September 2026

What the Tourism Dirham is

The Tourism Dirham is a government fee charged to guests for each night they stay at a licensed hotel establishment in Dubai. Under Executive Council Resolution No. 2 of 2014, holiday homes count as hotel establishments, so the fee applies to them too.

The amount depends on the property's classification. For holiday homes, the two classifications are Standard and Deluxe, and Deluxe homes pay the higher rate. Hosts must describe it as a fee, not a tax, and show it in their prices, booking pages and invoices.

How it is worked out for a holiday home

DET's rules charge the fee per bedroom per night, not per guest. A three-bedroom home therefore attracts three times the nightly fee of a one-bedroom home, however many people stay.

The fee stops after 30 consecutive nights, so a guest staying longer pays it only for the first 30. An owner staying in their own home does not pay it. The host collects the fee and must pay it to DET before the 16th of the following month.

2026 relief measures

In April 2026 Dubai let hospitality businesses, including holiday homes, defer the Tourism Dirham and room sales fees for three months from 1 April. A second package approved on 21 May 2026 went further, announcing an exemption from collecting the Tourism Dirham and from holiday home permit and licence fees.

The government said the May measures would run for three to 12 months, with each authority announcing its own timeline. If you are booking or hosting now, ask whether the Tourism Dirham applies to your dates and check that the invoice shows it correctly.

Other charges a guest may see

On top of the nightly rate, a booking can include a cleaning fee, a booking platform service fee and a refundable security deposit. Some operators also charge for extras such as early check-in or extra linen.

DET's rules require licensed operators to give each guest a written contract and not to charge anything beyond what the contract says. No official figure for security deposits was found, so read the deposit amount, what it covers and when it will be returned before you pay.

Where VAT fits in

The UAE's standard VAT rate is 5%. A business must register for VAT once its taxable supplies over the past 12 months exceed AED 375,000, and it may register voluntarily above AED 187,500. If the owner or operator is registered, VAT is added to taxable charges and the guest should get a tax invoice.

Short holiday stays are generally treated more like hotel accommodation than exempt residential leases, so they can be taxable. The rules on exempt residential leases turn on the details, so owners should confirm their position with the Federal Tax Authority or a registered tax agent.

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Questions people ask

Is the Tourism Dirham charged per person?

No. For holiday homes it is charged per bedroom per night, whatever the number of guests.

Do I pay it for a two-month stay?

Only for the first 30 consecutive nights. The fee does not apply to nights beyond that.

Is the Tourism Dirham still being charged in 2026?

Dubai announced relief measures in 2026, including an exemption from collecting it, with timelines set by each authority. Check with your host or DET for your dates.

Will my holiday home price include VAT?

Only if the owner or operator is VAT-registered. If they are, ask for a tax invoice showing the VAT separately.