The Abu Dhabi Executive Committee has approved a proposal to reduce tourism fees from 6 per cent to 3.5 per cent and municipality fees from 4 per cent to 2 per cent, a report said.

The decision came during a meeting on Tuesday, which was presided over by Jassim Mohammed Buatabh Al Zaabi, chairman of the Committee, reported Emirates news agency Wam.

The Committee also sanctioned a proposal to reduce municipality fees for hotel rooms from Dh15 ($4) to Dh10 ($2.7) per room, per night and to collect the fees on half-yearly, instead of monthly basis.

The move comes just a day after Dubai slashed municipality fees on sales at local 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.

The new fee reduction comes as part of the Abu Dhabi Development Accelerators Programmes, launched by HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, the report said.

Al Zaabi emphasised the importance of the tourism sector as a key component in the economic diversification drive in Abu Dhabi and said that the move will boost the sector's development plan through world-class facilities that will make the emirate a leading tourist destination.