Dubai has slashed municipality fees on sales at restaurants and hotels from 10 per cent to 7 per cent in a move aimed at reducing the cost of doing business in Dubai and promoting the emirate as a favourite business destination worldwide, a media report said.

This is in addition to enhancing the competitiveness of the emirate's tourism industry and luring more investments to the hospitality and tourism sector, reported Emirates news agency Wam.

The decision is in line with the resolution issued by Dubai Executive Council last week to slash "market fees" imposed by Dubai Municipality by 50 per cent, as Dubai aims to provide more support to the existing businesses and attracting more foreign investments.

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council  said: "We continue working upon the directives of Sheikh Mohammed bin Rashid Al Maktoum, the Vice President, Prime Minister and Ruler of Dubai, to facilitate the process of doing business, increasing the emirate's competitiveness and enhancing the partnerships between the public and private sector thus ensuring the growth of all the economic sectors, with focus on the tourism sector."

"We have a very strong tourism sector that enjoys a lot of potential and we are quite sure that it will continue its valuable contribution to the emirate's GDP.

"We are very determined in confirming Dubai's status as one of the best destinations for tourism and business worldwide and our incentive policy is directed towards the major strategic economic sectors.

"The tourism and hospitality sector is a major pillar for our policy of economic diversification and we need to develop resilient strategies and conducive environment that support the current and forecasted economic growth to ensure its sustainability,” he added.

Dubai is the fourth city worldwide in terms of luring tourists with 15.8 million visitors in 2017 and this figure is forecast to increase to 20 million by 2020.

Starting on October 20, 2020, the Expo 2020 Dubai is expected to draw millions of visitors from all around the world.