The cost of dining and drinking in the UAE is set to rise after the government reinstated the 30% tax on alcohol. This move will significantly impact bars, restaurants, and customers who have enjoyed lower prices over the past year. The change is expected to push up the cost of alcoholic beverages across the country, especially in Dubai, where the tax had been removed as part of a trial period in 2023.
What’s Changing?
For the past year, Dubai had removed its 30% alcohol tax to boost tourism and encourage spending in the hospitality sector. This led to a noticeable drop in alcohol prices, making drinks more affordable for residents and visitors. However, as of 2024, the tax has been reinstated, meaning all alcohol sales, whether in bars, restaurants, or liquor stores, will now include the additional 30% charge.
How Will This Affect Customers?
If you enjoy a night out in Dubai or other parts of the UAE, expect to pay more for your drinks. With the tax back in place, a bottle of wine or a pint of beer will now cost significantly more than it did last year. Many bars and restaurants will pass on the additional cost to customers, which could lead to higher overall bills.
A customer at a popular Dubai bar shared their thoughts: “I was really enjoying the lower prices. Now, going out for drinks will feel like a luxury again.”
Impact on Businesses
Bars and restaurants are preparing for the effects of the tax increase. Some business owners fear that the higher costs will reduce customer spending and lead to a drop in sales. Others believe that people will continue to enjoy alcohol but may shift their habits—perhaps drinking less or choosing more affordable options.
A manager at a well-known Dubai restaurant said: “Last year, we saw more customers ordering expensive wines and cocktails. With the tax back, we expect some people to cut back on their spending.”
Liquor stores will also be affected, as the reinstated tax means retail alcohol prices will jump again. Many residents had stocked up on alcohol while prices were low, anticipating this change.
Why Is the Tax Back?
The removal of the alcohol tax was always considered a temporary measure. It was introduced to support the hospitality industry and attract more tourists. With tourism in Dubai and the UAE already booming, officials may have decided it was time to restore the tax and generate additional revenue for the government.
What’s Next?
While the price increase is disappointing for many, it is unlikely to stop people from going out and enjoying themselves. However, customers might become more selective about where they drink and how much they spend. Some businesses could introduce special promotions or happy hour deals to keep attracting customers.
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