The UK and European hospitality industry enters 2025 with strong consumer demand but faces the most volatile cost environment the sector has navigated in more than ten years. Although inflation has eased in some categories, suppliers continue to adjust prices weekly. Labour remains costly and scarce. Volatility in commodities and logistics persists across Europe. For operators managing tight margins, small deviations in inventory accuracy now have significant financial impact.
Dubai will rewind back its alcohol tax-free years by re-introducing the 30% alcohol sales tax in Dubai as early as January 1, 2025. The party, therefore, will be getting more expensive with the new tax slab. The two-year tax suspension had taken tourism to new heights as the affordable prices made more people visit the UAE. It has even driven low prices for retailers and made the emirate much more appealing to visitors and people looking to live in the beautiful UAE. But 2025 is going to get a lot different, however, and businesses, tourists, and regular consumers are now preparing for the impact.
