Illegal hotel apartments overflows UAE hospitality market

Visitors to UAE have an increasingly number of illegal accommodation options, according to Emirates Business.

"Many posh villas with swimming pools and other facilities matching star hotels in the Dubai Marina and The Palm Jumeirah areas, are leased out for short-term stay to tourists and there are agents and internet sites guiding tourists to such cheaper but illegal accommodation," says a employee at a five-star hotel to the magazine.

Asking not to be named, he added: "As the overall number of tourists is anyway less at this time, it will definitely affect our business."

The illegal options have a cost advantage as they do not pay the 10 percent guest service charge to Dubai Municipality.

The sector has expanded for some time now. As the city of Dubai became more and more well-visited, and the shortage of hotel rooms drove up the hotel prices, the number of illegitimate options increased. The boost got extra speed as the real estate market crackled.

The practice might pose a risk to national security according to a source in the hotel apartments business:

"Authorised hotel apartments are always being monitored by law enforcement authorities. Whenever a new guest checks in their presence is recorded and, if needed, security agencies can monitor and track them down.”

Recently, Dubai Tourism and Commerce Marketing closed down an illegal guesthouse run by two women.