Decree
No. (41) of 2013
Regulating
the Activity of Leasing out Holiday Homes in the Emirate of Dubai[1]
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We, Mohammed bin Rashid Al
Maktoum, Ruler of Dubai,
After
perusal of:
Law
No. (1) of 1997 Establishing the Department of Tourism and Commerce Marketing
and its amendments;
Law
No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai;
Law
No. (9) of 2004 Concerning the Dubai International Financial Centre and its
amendments;
Law
No. (32) of 2008 Establishing the Government of Dubai Legal Affairs Department;
Law
No. (14) of 2009 Concerning the Pricing of Government Services in the Emirate
of Dubai;
Law
No. (35) of 2009 Concerning Management of the Public Funds of the Government of
Dubai and its amendments;
Law
No. (13) of 2011 Regulating the Conduct of Economic Activities in the Emirate
of Dubai;
Decree
No. (22) of 2009 Concerning Special Development Zones in the Emirate of Dubai;
Decree
No. (13) of 2011 Concerning the e-Programme for Hotel and Tourism
Establishments in the Emirate of Dubai;
Regulation
No. (1) of 1998 Concerning Licensing and Classification of Hotels, Guest Houses,
and Hotel Apartments and its amendments; and
The
legislation regulating free zones in the Emirate of Dubai,
Do hereby issue this Decree.
The following words and
expressions, wherever mentioned in this Decree, will have the meaning indicated
opposite each of them unless the context implies otherwise:
|
Emirate: |
The
Emirate of Dubai. |
|
Executive
Council: |
The
Executive Council of the Emirate of Dubai. |
|
DTCM: |
The
Department of Tourism and Commerce Marketing. |
|
Director
General: |
The director
general of the DTCM. |
|
Licensing
Authority: |
The
entity legally authorised to issue tourist licences to Establishments
operating in the Emirate, in Special Development Zones, and in free zones,
including the Dubai International Financial Centre. |
|
Holiday
Homes: |
Furnished
real property units designated to conduct the Activity in accordance with the
conditions and criteria adopted by the DTCM in this regard. |
|
Activity:
|
Regularly,
and on an ongoing basis, engaging in leasing out Holiday Homes, or renting Holiday
Homes for the purpose of subletting them to Guests. |
|
Establishment: |
A
corporation or company licensed to conduct the Activity in the Emirate. |
|
Licensee:
|
An individual
or Establishment licensed to conduct the Activity in the Emirate. |
|
Licence:
|
A
document issued by the DTCM stating that the DTCM authorises a Licensee to
conduct the Activity in the Emirate after verifying that all conditions and
requirements adopted by the DTCM in this regard are met by the Licensee. |
|
Register: |
The
paper or electronic record maintained by the DTCM for the purpose of
recording all information related to Licensees. |
|
Guest: |
A
natural person who stays in a Holiday Home in return for payment with the
intention of using it as overnight accommodation. |
The
provisions of this Decree will apply to all individuals and entities conducting
the Activity in the Emirate including Special Development Zones and free zones,
such as the Dubai International Financial Centre.
a.
No
natural or legal person may conduct the Activity in the Emirate unless that
person is licensed to do so by the DTCM.
b.
No
Establishment may establish a branch in the Emirate without first obtaining the
relevant Licence from the DTCM.
c.
The
Activity will be conducted by Licensees within the Emirate in accordance with
the conditions and requirements determined by the DTCM in coordination with the
concerned entities.
The
DTCM is the competent entity in the Emirate in charge of regulating the
Activity. For this purpose, the DTCM will have the duties and powers to:
1. set the technical conditions,
requirements, and criteria that must be met to conduct the Activity in
accordance with the best international practices in this regard, and determine
the procedures that must be followed to grant a Licence;
2. determine applications for Licences,
renewal of Licences, and variation of the details of individuals and
Establishments;
3. determine the tasks, duties, and
obligations of Licensees;
4. supervise and monitor Licensees in
accordance with the provisions of this Decree and the resolutions issued in
pursuance hereof;
5. supervise and inspect Holiday Homes to
verify their compliance with the criteria, conditions, and requirements
determined by the DTCM;
6. receive, investigate, and take the
necessary action in respect of complaints filed against Licensees, or against any
individual or entity conducting the Activity in the Emirate without a Licence
from the DTCM;
7. impose the penalties stipulated in
this Decree on violators of the provisions of this Decree and the resolutions
issued in pursuance hereof;
8. create a database of the names of
Licensees and Holiday Homes in the Emirate;
9. maintain the Register and determine
its form and the basic information that must be entered in it; and
10. perform any other duties required for
regulating the Activity in the Emirate.
The DTCM will, pursuant to the resolutions it issues, determine the conditions, requirements, and procedures for granting Licences to individuals and Establishments to conduct the Activity.
The DTCM will, pursuant to the resolutions it issues, determine the criteria, requirements, and conditions that must be met by the Holiday Homes managed by individuals or Establishments.
a. The term of the Licence will be one
(1) year, renewable for the same period. The DTCM may, upon the request of an
applicant for a Licence, approve that the term of the Licence be for more than
one (1) year, and up to four (4) years.
b. A Licensee must renew his Licence with
the DTCM in accordance with the conditions and requirements adopted by the DTCM
in this regard.
A Licensee must:
1. comply with the legislation in force
in the Emirate, including the resolutions issued by the DTCM;
2. keep paper and electronic records of
all information relating to Holiday Homes, maintain these for the period
determined by the DTCM, and make them accessible to the DTCM employees;
3. provide an insurance policy issued by
a licensed insurance company in accordance with the conditions adopted by the DTCM
in this regard, with a view to ensuring that Guests are indemnified for any
damage they may sustain. The insurance policy must be valid for the entire term
of the Licence;
4. subscribe to the e-Programme for Hotel
and Tourism Establishments in accordance with the above-mentioned Decree No.
(13) of 2011, and enter the required information in this programme;
5. provide Guests with accurate and
complete information on Holiday Homes and their classification categories;
6. respond to the complaints referred to
it by the DTCM within the prescribed period;
7. maintain a notice board, which
displays the information of the Licensee in the Arabic and English languages
and the classification category of the Holiday Home, in a prominent place in
each Holiday Home;
8. regularly provide maintenance services
of Holiday Homes;
9. provide Holiday Homes with electricity
and water services without charging Guests additional costs;
10. lease Holiday Homes to Guests on a
daily, weekly, monthly, or annual basis;
11. lease out Holiday Homes in whole
rather than in part as separate rooms or bed spaces;
12. abstain from acting as a broker
between Guests and any entity which is not licensed by the DTCM to conduct the
Activity;
13. provide the DTCM with the information,
documents, papers, and statistics requested by it, and fully cooperate with it;
14. notify the DTCM of any variation of
the details of the Licensee; and
15. comply with any other obligations
determined by the DTCM pursuant to the resolutions issued by it in this regard.
a. In accordance with the classification
criteria prescribed by a resolution of the Director General, Holiday Homes will
be classified into two categories: deluxe and standard.
b. The DTCM will inspect Holiday Homes to
verify that they meet the classification criteria adopted by the DTCM.
c. The DTCM may upgrade or downgrade the
classification of a Holiday Home in accordance with the adopted classification
criteria and based on compliance by the Establishment with the provisions of
this Decree, the resolutions issued in pursuance hereof, and any other
criteria deemed necessary by the DTCM.
In return for the Licences
and other services provided by the DTCM, the DTCM will collect the fees prescribed pursuant to a
resolution of the Chairman of the Executive Council.
a. Without prejudice to any stricter
penalty stipulated in any other legislation, any person who violates the
provisions of this Decree or the resolutions issued in pursuance hereof will be
punished by a fine of not less than two hundred Dirhams (AED 200.00) and not
more than twenty thousand Dirhams (AED 20,000.00). Upon repetition of the same
violation within one (1) year from the date of the previous violation, the
amount of the fine will be doubled, provided that a fine does not exceed one
hundred thousand Dirhams (AED 100,000.00). The Chairman of the Executive
Council will determine, pursuant to a resolution issued by him in this regard,
the prohibited acts and the fines to be imposed on the perpetrators of these
acts.
b. In addition to the penalty of a fine
referred to in paragraph (a) of this Article, the DTCM may take one or more of
the following measures against violators:
1. warning;
2. suspending the Activity for a period not exceeding six (6) months; and/ or
3. cancelling the Licence.
c. Upon a written request submitted by a Licensee
whose Licence has been cancelled, the DTCM may reinstate the Licence one (1)
year after the date of cancellation of the Licence in accordance with the
procedures and rules adopted by the DTCM in this regard.
Employees
of the DTCM nominated by a resolution of the Director General, issued in
coordination with the Director General of the Government of Dubai Legal Affairs
Department, will have the capacity of law enforcement officers to record the
acts committed in breach of the provisions of this Decree and the resolutions issued in
pursuance hereof. For this purpose, they may inspect Holiday Homes,
Establishments, or any of their facilities, and review all the records,
documents, and entries maintained by the Licensees, and may issue the violation
reports required in this regard.
Any
affected party may submit a written grievance to the Director General against
the decisions, procedures, or measures taken against him under this Decree and
the resolutions issued in pursuance hereof, within thirty (30) days of being
notified of the contested decision, procedure, or measure. The grievance will
be determined within thirty (30) days from the submission date. The decision
issued in respect of the grievance will be final.
For
the purposes of implementing the provisions of this Decree and the resolutions
issued in pursuance hereof, the DTCM may seek assistance from Government
entities in the Emirate, including police personnel. Upon request, such
entities must provide prompt support and assistance to the DTCM.
The
DTCM will not be liable to third parties for any damage they may suffer as a
result of a Licensee conducting the Activity.
All
individuals and entities conducting the Activity in the Emirate before the
effective date of this Decree must comply with its provisions within three (3)
months from the effective date of the Decree.
The
Director General will issue the resolutions required for the implementation of
the provisions of this Decree.
Any
provision in any other legislation will be repealed to the extent that it
contradicts the provisions of this Decree.
This
Decree will be published in the Official Gazette and will come into force three
(3) months after the date on which it is published.
Mohammed bin Rashid Al Maktoum
Ruler of Dubai
Issued in Dubai on 24 November 2013
Corresponding to 20
Muharram 1435 A.H.
©2015 The Supreme Legislation Committee in the
Emirate of Dubai
[1]Every effort has been made to produce an
accurate and complete English version of this legislation. However, for the
purpose of its interpretation and application, reference must be made to the
original Arabic text. In case of conflict the Arabic text will prevail.