Wedding Planners Welcome Decision to End Alcohol Tax in Dubai
Dubai ended its 30% tax on alcohol sales on 1 January 2023, and made its required liquor licenses free to obtain. This decision ended a long-standing source of revenue for its ruling family to further boost tourism and destination weddings to the emirate.
The sudden New Year's Day announcement, made by Dubai's two state-linked alcohol retailers, came apparently from a government decree from its ruling Al Maktoum family.
Personal liquor licenses will be free-to-obtain for those eligible to legally purchase alcoholic beverages in Dubai. A valid Emirates ID, or Passport for tourists, will still be required to apply.
Maritime and Mercantile International (MMI), a subsidiary of the Emirates Group, and a major alcohol distributor and retailer in Dubai, removed 30% municipality tax levied on alcohol sales. It urged customers to buy from its stores, saying "you no longer need to drive out to the other emirates." Dubai residents long have driven into Umm Al Quwain and other emirates for bulk, tax-free alcohol purchases.
The wedding planning community in Dubai welcomed the news which is seen to have a positive impact on attracting more destination weddings into Dubai.
"With the turn of the New Year, the city of Dubai has yet again amazed us with an announcement that the events industry has welcomed with immense joy. The exemption of 30% tax on alcohol purchase in the emirate of Dubai will widen the gateway of destination weddings being hosted in this beautiful city. Dubai has always been a preferred destination for high profile weddings that are celebrated over multiple days which includes high consumption of alcohol. Having said that, we have seen wedding celebrations sway in the direction of other neighbouring emirates as the alcohol purchase price was significantly cheaper than in Dubai which made these emirates a popular choice for hosting weddings", said Rahul Kumar, Vivaah Celebrations.
"With the new announcement in place, the alcohol prices in Dubai are now quite competitive compared to other emirates and in some cases, even cheaper than the neighbouring emirates. This will definitely boost the wedding tourism in the city and further propel the thriving events and wedding industry in Dubai," added Rahul Kumar.
A Spectacular Indian Destination Wedding in Dubai by Vivaah Celebrations
Other wedding planners welcomed the news by saying "there will definitely be an impact of ending the 30% tax on alcohol for weddings and events in Dubai. We have seen huge struggles with clients booking certain venues or alcohol packages, because it was just too expensive. I'm sure some couples have decided against Dubai as their wedding destination because of that. I'm very happy about this decision, because now the couples have less budget pressure, Dubai will be more attractive as a wedding destination and we can do more beautiful décor because of this", said Stefanie Heller, Senior Wedding Planner at Jam Wedding Planner.
Arun Bablani, Found and Owner, Vivaah Weddings, also agrees that scraping the 30% alcohol tax in Dubai has a positive impact on the wedding industry. He said: "This is wonderful news for us as an industry. The move will act as a catalyst for decision makers wanting destination weddings and other social celebrations motivating them to choose Dubai over other cities. Over the last few years, whilst alcohol may have not been a 'deal breaker' to people looking to celebrate in Dubai, but it was definitely a point of contemplation which we at Vivaah Weddings has also raised with the authorities a few months ago."
"It is too soon to talk numbers at this stage but since alcohol plays a big role in social and corporate celebrations here in Dubai, cutting the taxes to zero will definitely boost the decision making and make Dubai more appealing compared to other gulf countries," added Arun Bablani.
Tasneem Alibhai, founder of TA Weddings and Special Occasions, a destination wedding planning company in Dubai said: "Great news to hear the 30% drop on alcohol prices! This will help for sure our wedding budgets, as alcohol was one of the biggest expenses."
Rasha Badran, Managing Director, The Purple Chair said: "Ending 30% Tax on alcohol will create a positive impact on the events and wedding industry in Dubai and will definitely open doors. This will positively contribute to the decision making when considering Dubai for a destination wedding. Guests will now have a bigger budget to spend on wedding décor and entertainment which is great news for planners!". She added "considering a significant budget was allocated to alcohol earlier considering the tax, this was a barrier which is now lifted and will give clients more flexibility. We look forward to seeing how this change unfolds and positively impacts this exciting industry."
