Increasing Hotel Prices Due to Alcohol Shortage in Qatar [UPDATE]

Increasing Hotel Prices Due to Alcohol Shortage in Qatar [UPDATE]

Increasing Hotel Prices Due to Alcohol Shortage in Qatar [UPDATE] “Qatar Hospitality Industry” is facing a significant challenge due to a shortage of alcohol, which has led to an increase in prices. The unexpected turn of events has rippled through the industry, affecting both locals and visitors.

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Increasing Hotel Prices Due to Alcohol Shortage in Qatar [UPDATE]

This update discusses the factors contributing to “The Scarcity of Alcohol in Qatar Hotels” and the subsequent rise in prices, as well as the implications for the hospitality industry.

[Update] 9 July 2019

As per the most recent update in our possession, the Qatar Distribution Company (QDC) has recently slashed alcohol prices by nearly 30%, and the stock is now replenished.

7 July 2019 Alcohol Shortage Crisis in Qatar Hotels

Over the past two weeks, several hotels across Qatar have been grappling with a “Significant Shortage” of alcohol, forcing them to raise prices in response to the scarcity. Sources indicate that the primary cause behind this shortage is the bottleneck at the “General Authority of Customs in Doha”, where alcohol shipments are reportedly getting stuck, leading to delays in releasing supplies to theQatar Distribution Company” (QDC), the central hub for alcohol distribution in the country.

QDC Response and Lack of Information

Despite seeking clarification from QDC. customer services were unable to provide any additional information on the matter.

Rumors Surrounding the Alcohol Shortage

As the reasons behind the alcohol shortage remain unclear, various rumors have circulated on social media platforms. One speculation suggests that QDC is awaiting a potential reduction in the Excise Tax, which imposes a 100% tax on alcohol, among other items. Another rumor alleges that QDC is refusing to pay the tax, causing delays in releasing shipments.

Selective Tax Law Implementation

In an effort to curtail the consumption of certain goods and generate funds for public services, Qatar implemented the Selective Tax Law at the beginning of the year. This law imposes a 100% tax on alcohol, tobacco products, energy drinks, and special purpose goods, with a 50% Tax on Carbonated Drinks”. QDC and hotels are responsible for paying these taxes, contributing to the increased cost of alcohol and related items. “The Tax Department” at the Ministry of Finance oversees these tax regulations and aims to improve voluntary tax compliance.

FAQs

Q): Is alcohol available in Qatar hotels?

A): Alcohol consumption and sale are strictly regulated in Qatar, a Muslim country. “For Non-Muslim” residents and tourists, alcohol is available in “Certain Establishments”, such as hotels.

Q): Why are there shortages of alcohol in Qatar hotels, and why are prices going up?

A): Qatar Distribution Company (QDC) is experiencing a shortage due to delays in releasing alcohol supplies caused by “The General Authority of Customs in Doha”. As a result of the scarcity, hotels have raised their prices.

Q): How is the Selective Tax Law impacting the availability and cost of alcohol in Qatar?

A): At the beginning of the year, the Selective Tax Law imposed a 100% tax on alcohol, tobacco products, energy drinks, and special purpose goods, “With a 50% tax on Carbonated Drinks”. Hotels and QDC are responsible for paying these taxes, resulting in increased costs and shortages

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Conclusion

Recent updates on alcohol supply in Qatar reveal a shortage in hotels, prompting price hikes. The Qatar Distribution Company (QDC) responded by cutting alcohol prices by “Nearly 30%”, replenishing stock. The shortage is linked to delays at the “General Authority of Customs in Doha”.

Despite rumors about the cause, clarity from QDC is lacking. The Selective Tax Law, imposing high taxes on alcohol, contributes to increased costs. Alcohol availability for “Non-Muslims” is restricted to specific establishments.

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