Dubai suspended a tax and drinking license fee as it competes with neighbors, such as alcohol-free Saudi Arabia, for tourists and economic hub status.
The privilege to drink in Dubai, however, comes at a cost, as many vendors have built the 30 percent tax into beverage prices. A pint of Budweiser costs about $13 at Biggles Pub, a hotel bar near the Dubai airport.
Representatives for several hotels in Dubai did not immediately respond to requests for comment about whether they would drop their prices in line with the suspension of the tax.that the changes were part of a year-long trial period. The Dubai government did not immediately respond to a request for comment.“Drinks out in Dubai are the most expensive drinks that I’ve ever bought,” said Lawrence, a 40-year-old British expat who recently moved to the emirate.
Lawrence, who spoke on the condition that only his first name be used as he was not authorized by his employer to speak on the topic, said many expats in Dubai pick up liquor at duty-free stores while traveling. The suspension of the alcohol tax will save him from those errands, he said, although he was not optimistic that the savings would be passed on to customers at bars.
The competition for tourists and foreign professionals is growing stiffer in the gulf region, with countries such as Saudi Arabia and Qatar seeking to wean themselves off dependency on oil revenue.into a “global wellness ultra-luxury destination that focuses on transformative personal journeys inspired by wellness, arts, culture and purity.”
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