Accessibility links

Breaking News

Dubai Announces New Airport Fee to Fund Improvements

FILE - An Emirates Airlines passenger jet taxis on the tarmac at Dubai International airport in Dubai, United Arab Emirates, April 20, 2010.

Travelers flying in and out of Dubai will have to pay a new tax meant to cover expansion at one of the world's busiest transit hubs.

Starting June 30, all passengers passing through the UAE city by plane will have to pay a $9.50 fee, according to a statement carried by the state news agency WAM.

It says the money from the new tax will be channeled into funding the expansion of Dubai's two airports.

Last month, airport authorities increased the annual capacity of Dubai International Airport to 90 million passengers with the opening of concourse D, at a cost of $1.2 billion. The main airport is also in the process of expanding and renovating two other terminals.

More than 78 million passengers passed through Dubai International in 2015, which, had the fee been in place, would have generated around $741 million in revenue.

The country is also expanding its second smaller airport, Al-Maktoum International, which opened in 2013.