Passengers face departure tax at Dubai airports
Australian passengers flying out of Dubai airports are set to be slugged with a $12.50 departure tax.
Australian passengers flying out of Dubai airports are set to be slugged with a new tax as Gulf countries try to recoup investments from the long-haul hub and as they continue to grapple with low oil prices.
All passengers departing from Dubai will pay a 35 dirham ($12.50) service fee for flights leaving after June 30 that have been booked since March 1, according to a statement from the Crown Prince of Dubai, Sheik Hamdan bin Mohammed bin Rashid Al Maktoum.
That includes most passengers transiting through Dubai International Airport, the world’s busiest for international travel, though children under two will be exempt. It is the first time Dubai has announced a passenger tax, which is imposed at many airports worldwide.
Qantas passengers flying to Europe via the Gulf airport could be particularly exposed to the new tax as flights covered by the airline’s partnership with Emirates regularly transit through Dubai.
While Qantas “through customers” — those flying on the same plane, flight number, and medal — will be exempt from the new charge, customers with connections to other flights from Dubai will need to pay the fee.
About 100 airlines fly to more than 240 destinations from the international hub, which is also home to carrier Emirates.
According to the statement from the Crown Prince, the fee will go towards expansion projects such as Dubai International Airport’s new $US1.2 billion ($1.57bn) Concourse D, the expansion of the airport’s Terminal 2 and the renovation of Terminal 1.
The city is also expanding Al Maktoum International Airport at Dubai World Central, with hopes of one day transferring all Emirates airline flights there.
The statement offered no revenue estimates.
More than 78 million passengers passed through Dubai International Airport in 2015 alone. That traffic could have brought in more than $US740 million had the fee been in place. Al Maktoum International Airport at Dubai World Central, in Dubai’s desert expanse near where it will host the 2020 World Expo, recorded more than 460,000 passengers in 2015, which would have raised another $US4.3m.
While airport fees are levied across the world, Dubai’s announcement comes as oil prices have slumped to less than $US40 a barrel.
Those low prices, which are likely to remain depressed for some time, have forced the United Arab Emirates and its Gulf neighbours to consider taxes and levy other fees to raise money.
ADDITIONAL REPORTING: AP
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