Dubai’s tourism sector has emerged as one of the most lucrative industries, transforming the city into a global tourist destination. Over the past two decades, the UAE government has implemented numerous projects to enhance Dubai’s appeal, including beaches, the iconic Burj Khalifa, expansive malls, thrilling Night Safari experiences, Dubai Park and Resorts, Ferrari World, and the stunning Palm Jumeirah. This rapid growth in Dubai’s tourism sector has ignited the interest of serial entrepreneurs, prompting them to venture into the tourism business in Dubai.
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Compelling Reasons to Start a Tourism Business in Dubai
Embarking on a tourism business venture in Dubai presents an array of compelling reasons, fueled by a unique blend of factors that position the city as a prime hub for entrepreneurs within the industry.
Consider the following advantages:
1. Global Tourism Hub
Dubai stands as a beacon in global tourism, boasting over 17 million international visitors in 2022 alone, ranking it as the fourth most visited city worldwide. Forecasts indicate this number could surge to 25 million by 2025, underscoring the city’s enduring appeal.
2. Strategic Location
Nestled at the nexus of Europe, Asia, and Africa, Dubai serves as an immensely convenient global travel junction. With over 66% of the world’s population accessible within an 8-hour flight radius, it emerges as an optimal stopover destination, enhancing its allure for travelers worldwide.
3. Diverse Attractions
From iconic marvels like the Burj Khalifa and Palm Jumeirah to immersive cultural experiences in the historic Al Fahidi district, Dubai offers a rich tapestry of attractions that cater to varied interests and preferences, ensuring a vibrant tourism landscape.
4. Stable Environment and Policies
The UAE’s political stability and business-friendly regulations render Dubai an appealing destination for entrepreneurial endeavors. Its conducive business environment encourages innovation and growth, fostering an ecosystem ripe for tourism ventures.
5. Favorable Climate
Dubai’s perennially warm climate lends itself as an inviting destination year-round, drawing tourists from across the globe seeking respite from colder climates and ensuring steady visitor influx throughout the seasons.
6. Safety and Security
With a commendably low crime rate, Dubai boasts a reputation as one of the safest cities globally, instilling confidence and peace of mind among tourists, thereby augmenting its appeal as a premier destination.
7. Business Incentives
Dubai extends an array of incentives to businesses, including tax exemptions and streamlined access to capital, thereby facilitating the establishment and growth of tourism enterprises.
These factors collectively underscore Dubai’s standing as a dynamic epicenter for tourism ventures, offering a fertile ground for entrepreneurial aspirations to flourish and thrive.
Process of Starting a Tourism business in Dubai?
Before June 1, 2021, starting a tourism business in Dubai required compliance with strict regulations, including the mandatory requirement for foreign nationals to partner with a UAE national as a 51% shareholder. However, with the amendment of Law No. 2 of 2015 by the UAE Government, foreign nationals can now become 100% owners of tourism companies. This amendment, implemented by the Department of Economic Development in Dubai, changed the legal classification of tourism companies from commercial to professional, allowing foreign nationals to establish tour operator companies in Dubai without the need for a UAE national partner. Although a UAE national must still be appointed as the company’s agent for sponsorship purposes, this change marks a significant milestone in facilitating foreign investment in the tourism sector in Dubai.
Steps to Establishing a Tourism Business in Dubai
Here’s a simplified guide on how to open a tourism business in Dubai:
- Obtain name approval and preapproval from the Department of Economic Development (DED).
- Secure a No Objection Certificate (NOC) from the Tourism Department.
- Rent suitable office or shop premises for your business operations.
- Sign the Memorandum of Association (MOA) / Local Service Agent (LSA) agreement at either the Notary Public or the DED.
- Obtain liability insurance coverage of up to 2 million Dirhams.
- Seek guidance from a reputable company setup consultancy to navigate through the new rules and regulations, minimizing the risk of misunderstandings or penalties.
Experienced business setup advisors, like Company Setup Consultancy, play a crucial role in assisting with various procedures, including application preparation, meeting tourism authority requirements, and offering guidance at each step of the process to ensure a smooth journey towards establishing your tourism business.
Permissible Activities Under a Tourism License in Dubai
Under a tourism license in Dubai, you can engage in the following activities:
- Selling tourism packages both offline and online.
- Issuing travel insurance.
- Providing accommodation or stay options.
- Offering visa-related support services.
- Selling transportation tickets, including flights, railway, etc.
- Providing car rental services.
All of these activities can be conducted seamlessly under the same license in Dubai.
Varieties of Tourism Business Licenses in Dubai
When establishing a tourism enterprise in Dubai, various types of tourism business licenses cater to distinct facets of the industry. These licenses include:
a). Inbound Tour Operator License:
This license authorizes the organization of travel activities for visitors arriving in Dubai. It encompasses tasks such as hotel bookings, transportation arrangements, activity coordination, and provision of tour guide services. Additionally, holders of this license can arrange global conferences and exhibitions.
b). Outbound Tour Operator License:
An outbound tour operator license permits the organization of travel packages for Dubai residents seeking to explore other countries. It entails responsibilities like arranging flights, accommodations, activities, and facilitating visa procedures for outbound travelers.
c). Travel Agency License:
With a travel agency license, businesses can operate as intermediaries, representing and selling travel products and services on behalf of other entities within the tourism sector.
Documents Required to Start Tourism Business in Dubai<
To obtain a tourism license in Dubai, you will need to provide several key documents:
- Passport and visa copies of foreign nationals.
- If holding a residence visa, Emirates ID and a No Objection Certificate (NOC) from the current sponsor are necessary.
- A completed Tourism License Application.
- Work qualification certificates.
- A No Objection letter for Travel agent activity from the Civil Aviation Authority.
It’s important to note that for tourism company formation in Dubai, the business must be established as a mainland setup for operational purposes. Under new regulations, the license can be a professional one, allowing foreign nationals to own 100% of the company.
Cost of Starting a Tourism Business in Dubai
The cost of initiating a tourism venture in Dubai varies depending on several factors, including the business type, scale, and location. However, there are common expenses to anticipate, such as:
- Company registration charges
- Trade license fees
- Tourism license expenses
- Visa costs for staff
- Office space rental
- Marketing and promotional expenditures
As a guideline, the starting cost for obtaining a tourism business license in Dubai, UAE typically begins from AED 14,900*. It’s essential to note that these figures are approximate, and consulting with business setup professionals, like Company Setup Consultants, is advised for tailored guidance in establishing a tourism enterprise in Dubai.
How Company helps you start a Tourism Business in Dubai
Company Setup Consultants, a leading Business consultancy firm headquartered in Dubai, UAE, specializes in providing professional services tailored to assist individuals in launching their travel and tourism agencies cost-effectively.
Starting a tourism business in Dubai becomes effortless with the guidance and support of Company Setup. Our team is dedicated to simplifying the process for you, ensuring swift setup procedures, and facilitating a seamless journey towards establishing your tourism-related enterprise. By entrusting us with your aspirations, you can expedite the setup process, enabling you to inaugurate a prestigious and flourishing touristic venture in one of the world’s most renowned destinations.
Feel Free to Contact us at +971 582595164 (call or WhatsApp) or email info@companysetup.ae.
