“The new legislation will clearly define how exactly the amount of the 10% service charge should be distributed between employees of hotels and hotel apartments,” said Susan Ode, senior coordinator of DTCM's legal department. “The draft law was submitted to the Dubai Ruler's Court a year ago. We are currently awaiting approval, but we still cannot say exactly when this will happen.”
Recall that in March 1999, a circular was issued in Dubai regarding service charges in all hotels and apartment-type hotels, approved and signed by Sheikh Mohammed bin Rashid Al Maktoum, the then Crown Prince of Dubai and chairman of the DTCM, and now, being the ruler of the emirate. This circular stated that "hotels and apartment-type hotels cannot charge service charges in excess of ten percent of the price of a room, food or drink." In addition, "the management of hotels and apartment-type hotels is obligated to distribute the income received from service charges in favor of hotel workers."
During the recent large Arabian Travel Market 2010 international exhibition in Dubai, Omer Kadduri, senior vice president of the Rotana hotel group, said in an interview with media representatives that "hotel workers directly receive only three to four percent of service charges, the rest is goes to pay for their housing, transportation and other benefits, and is also transferred to a special fund, the funds from which are subsequently used to pay wages, train new employees, on joint outings, picnics, etc. For other initiatives related to their relaxation and leisure. "
