UAE, Dubai: Yesterday, the emirate of Dubai, whose airport is the world’s busiest for international passengers, announced that it was introducing a tax on travellers to help finance expansion, as Gulf governments grapple with plummeting revenues. The 35 dirham ($9.50) fee will apply to all passengers, including those transitting in Dubai, on all flights from June 30, according to a statement carried by WAM state news agency.

It is the first time Dubai has announced a passenger tax, which is imposed in many airports worldwide. More than 78 million passengers passed through Dubai International in 2015, keeping its place as the world’s busiest for international passengers since overtaking London Heathrow in 2014. Last month, Dubai Airports increased the capacity of its main airport to 90 million passengers with the opening of concourse D, at a cost of $1.2 billion.