How to Start a Tourism Business In Dubai ?
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Boasting over 14 million annual visitors and the world’s second busiest airport, Dubai stands as a tourism powerhouse in the UAE. This evergreen industry fuels not only the travel sector but also the broader UAE economy.
Several factors make establishing a tourism company in Dubai highly advantageous. The emirate’s sunny climate, stunning beaches, and iconic architectural landmarks draw international tourists year-round.
Furthermore, Dubai’s strategic location, robust infrastructure, and welcoming environment for entrepreneurs and investors have turned it into a global hub for business tycoons. This fertile ground presents lucrative opportunities for international investors to enter the thriving travel and tourism market.
To fully own (100% Ownership) and operate a tourism company in Dubai, navigating specific documentation requirements is crucial. Khidmath Corporate Business Consultant in Dubai can seamlessly guide you through the entire business setup process, ensuring a smooth and efficient launch into this dynamic market.
How to start a tourism business in Dubai
Several investors in 2021 considered starting tourism businesses in Dubai, spurred by the new amendment allowing 100% foreign ownership. This simplified the process, as business licenses shifted from commercial to professional categories. Previously, a 51% share was mandatory for local UAE partners. While this is no longer a strict requirement, appointing a local sponsor remains an option.
Establishing a tourism company in Dubai involves registration with the Dubai Economic Department and acquiring an E permit from Dubai Tourism & Commerce. Choosing the appropriate license is crucial due to various categories within the travel and tourism sector. Consulting a professional business setup expert can streamline this process and provide valuable guidance.
Required documents to get a tourism license in Dubai, UAE
Applicants are required to submit the below mentioned documents if they plan to start a travel & tourism company in Dubai. In this case a business setup consultant can help here.
- Trade name registration
- Photocopy of valid passports of the owners/ shareholders
- Visa copy of foreign national
- Completed Tourism License Application form
- Certification of work qualification
- Certificate of the good conduct of the owner/Proof of clean criminal record
- Tourism business plan and feasibility study report, indicating the mode of operation and profit analysis
- NOC issued by Civil Aviation Authority
Types of tourism business license in Dubai
- Inbound tour operator license: This license allows companies to organize and manage tours, events, transportation, and visa arrangements for tourists visiting Dubai. It covers cultural tours, city tours, desert safaris, and other activities within the UAE.
- Outbound tour operator license: This license authorizes companies to design and sell travel and tourism packages outside the UAE. They can specialize in beach holidays, adventure tours, religious pilgrimages, or other travel experiences in various regions.
- Travel agent license: This license permits companies to act as ticketing agents for airlines, buses, and vacation packages. They can book flights, hotel stays, and other travel services on behalf of their clients
Steps to obtain tourism business license in Dubai
Choose a business location
Understanding the two main business registration options in Dubai – Mainland and Freezone – is crucial for entrepreneurs and investors. Each offers distinct advantages and limitations:
- Mainland companies:
- Wider reach: Registered with the Dubai Economic Department (DED), Mainland companies can operate throughout the Emirate, not just within designated free zones.
- Stricter regulations: Mainland companies adhere to a more comprehensive set of regulations compared to free zones.
- Potential benefits: Certain business activities may benefit from greater accessibility to local markets and government contracts on the Mainland.
- Freezone companies:
- Simplified Setup: Registration processes tend to be quicker and simpler within free zones.
- Flexible regulations: Companies enjoy greater operational flexibility due to relaxed regulations within free zones.
- Specific incentives: Various free zones offer unique incentives like tax breaks, customs duty exemptions, and repatriation of profits. However, their operations are typically restricted to within the designated free zone area.
The ideal choice depends on your specific business needs and priorities. Consider factors like your target market, desired regulations, operational limitations, and financial projections. Consulting with business advisors in Dubai can help you determine the most suitable option for your venture.
Company registration and tourism activities
Planning your tourism business requires a thoughtful sequence of steps:
- Location selection: Start by deciding on your ideal operating location. This will influence potential business activities and licensing requirements. Consider whether you’ll offer tours within a single location, across various sites, or act as a travel agent.
- Business name: Once your location and activity type are set, choose a unique and suitable name for your business. Remember to avoid offensive language and ensure the name isn’t already trademarked by another company.
- Company registration: With your chosen name, register your business according to the relevant licensing requirements for your location and activities.
Acquire tourism business license
Securing the necessary licenses is crucial for operating your tourism business in Dubai. This process depends on your company structure:
- Mainland Companies: For companies registered with the Dubai Economic Department (DED), the DED issues the initial business license based on your chosen location and activities.
- Freezone Companies: If your company operates within a free zone, you’ll obtain the business license from the relevant free zone authority.
In addition to the general business license, all tourism businesses in Dubai require a separate license from the Department of Tourism and Commerce Marketing (DTCM). Fulfilling specific requirements set by DTCM is mandatory to obtain this license.
It’s important to consult with both DED and DTCM about the specific licenses and requirements applicable to your chosen location, activities, and company structure. This ensures a smooth and compliant licensing process for your tourism business.
Visa & immigration processing
Starting a tourism company in Dubai involves different visa considerations depending on your chosen location:
- For mainland companies:
- Business owners must first establish a legal entity for their operations.
- Owners can then apply for their own business visas to live and work in Dubai.
- Additional visas for expatriate employees can also be sponsored by the company.
- For freezone companies:
- Each free zone may offer its own unique visa packages for both employers and employees.
For guidance on navigating visa regulations and other business setup needs, Khidmath Corporate Services can offer valuable assistance. They provide solutions tailored to your specific situation and chosen company structure in Dubai.
Open a bank account
Securing a business bank account is a crucial step for operating any company, including tourism businesses in Dubai. The process can be complex due to regulations and compliance requirements.
To navigate this complexity, many businesses choose to enlist the help of specialized bank account assistance services. These services can guide you through the application process, ensuring all necessary documentation is prepared and submitted correctly.
Khidmath Corporate Services offers bank account assistance as part of their business setup solutions. They can help you understand the specific requirements for tourism businesses and connect you with relevant banking partners.
Ultimately, choosing the right bank account assistance service can simplify the process and increase your chances of a successful application.
Cost of starting a tourism business in Dubai
Although business setup costs can vary based on specific needs, some general expenses apply to all tourism companies in Dubai:
- Business registration fees
- Trade license fees
- Tourism license fees (starting from AED 6,000, with possible additional costs depending on activities)
- Visa fees for employees
- Office rental
- Website development cost
- Marketing and advertising costs
Beyond these standard expenses, additional factors can influence the overall cost, such as your chosen location, business activities, and the number of employees.
For a customized cost estimate tailored to your specific tourism business, it’s recommended to consult with experienced business setup consultants like Khidmath Corporate Services in Dubai. They can analyze your requirements and offer comprehensive guidance on costs, licenses, and other essential aspects of launching a successful tourism venture in the emirate.
Commercial activities performed with a tourism license
Once you secure a Tourism License in Dubai for establishing your business, you can;
- Sell tourism packages offline & online
In the dynamic tourism landscape of Dubai, generating revenue through attractive tourism packages is a key strategy. This approach works effectively both through traditional offline channels and the ever-expanding online marketplace.
By curating and offering well-designed packages, your company can capitalize on the city’s rich tapestry of cultural, historical, and leisure experiences. Diversifying your package offerings to cater to various interests and budgets is crucial. This ensures a memorable and personalized experience for every traveler, fostering customer loyalty and repeat business.
- Issue travel insurance
Prioritizing the safety and well-being of your clients is a cornerstone of success in the tourism industry. Offering travel insurance as part of your services can significantly contribute to this, providing travelers with valuable peace of mind and a sense of security.
Building partnerships with reputable insurance providers allows you to offer comprehensive plans tailored to various needs. These plans could cover medical emergencies, trip cancellations, lost belongings, and other potential travel disruptions.
By making travel insurance readily available and highlighting its benefits, you demonstrate your commitment to your clients’ well-being, potentially differentiating your company from competitors and fostering trust among travelers.
- Provide accommodation and stay options
In Dubai’s diverse tourism landscape, offering a wide range of accommodation options is crucial for catering to travelers’ varied needs and preferences. This could include luxury hotels, charming boutique stays, or budget-friendly lodgings.
By establishing partnerships with different accommodation providers, your tourism company can act as a one-stop-shop for visitors seeking a comfortable and suitable place to stay during their trip.
- Provide supporting services related to visa
Navigating visa processes can be a complex task for travelers. Your tourism company can simplify this journey by offering comprehensive visa support services. This includes guiding clients through the application process, ensuring compliance with regulations, and providing timely updates on visa statuses. A smooth visa experience enhances overall customer satisfaction.
- Sell flight, railway & bus tickets
Securing visas can be a complex and sometimes stressful step for travelers, especially unfamiliar with Dubai’s regulations. To ease this journey, your tourism company can offer valuable visa support services. These services can include:
- Guide clients through the application process: Assisting with necessary documents, filling out forms, and explaining requirements.
- Ensuring compliance with regulations: Staying updated on visa rules and advising clients on any specific needs based on their nationality and travel plans.
- Providing timely updates on visa statuses: Keeping clients informed throughout the process and addressing any questions or concerns.
By offering comprehensive visa support, you can significantly enhance your clients’ satisfaction and contribute to a smoother overall travel experience for them. This can further differentiate your company from competitors and foster trust with travelers.
- Provide car rental services
Make travel seamless for your clients by offering a range of convenient transportation options. This could include international flights, domestic railways, and buses, providing ticketing services and simplifying travel planning. By partnering with reliable transportation providers, your company can secure competitive rates and ensure a smooth and hassle-free booking experience for your customers.
- Sell adventure tour packages
Dubai’s vibrant landscape caters to diverse interests, including the growing community of adventure enthusiasts. To tap into this market, your tourism company could develop and promote exciting adventure tour packages. Consider desert safaris, thrilling water sports, or invigorating mountain excursions to create exhilarating experiences that appeal to this niche audience.
Conditions of license issuance to keep in mind
1. Business structure
- Local sponsorship: Foreign nationals must have a local sponsor who owns 51% of the company shares. This sponsor acts as a legal representative and provides support with government formalities.
- Company type: Most tourism businesses operate as Limited Liability Companies (LLCs).
2. Personnel qualifications
- Manager experience: The company manager must have at least 3 years of experience managing a travel/tourism/hospitality business. Relevant qualifications or certifications may be required.
- Employee training: Staff involved in tourism activities should receive appropriate training to ensure quality service and adherence to regulations.
3. Operational requirements
- Registered office: You must have a physical office space in Dubai with a valid lease agreement.
- Financial guarantees: A refundable security deposit, typically AED 100,000, may be required by the Department of Tourism and Commerce Marketing (DTCM).
- Insurance: Adequate liability insurance coverage is mandatory.
- Compliance with regulations: Your business must comply with all relevant tourism laws and regulations set by the DTCM and other government entities.
Dubai tourism business made easy with Khidmath Corporate Services
Khidmath Corporate Services guides you every step of the way, transforming your vision into a successful reality.
No need to navigate complex regulations alone. Our experienced team, well-versed in Dubai’s dynamic tourism scene, simplifies the setup process. We handle licensing, legal matters, and even secure prime office space, allowing you to focus on crafting unique experiences for your guests.
For further inquiries or to initiate the process, please contact us via email at ask@khidmath.ae or call us at +971-582-955227. We look forward to the opportunity to assist you in achieving your business goals.
