Dubai is the best place to set up a business in the UAE. This is because of its growing economy, rich resources, and reliability in growing business. With friendly government policies and incentives, they offer, Dubai has become the hub of start-ups.
Dubai hosts around 15-16 million tourists every year for traveling, Business Setup, and job opportunities making Dubai an accommodating place. So what could be better than starting a hotel business in Dubai? Due to this number of visitor’s hotel business is booming making this business as the most financially rewarding business.
Some requirements must be fulfilled before you start a hotel business in Dubai. We will help you understand the fundamentals of this business which will be very beneficial for you while establishing your business.
About Hotel Business in Dubai
Dubai with its tremendous location and pleasant sea links is a perfect place for the tourism industry. The tourism sector offers various investment opportunities for foreign investors who also want to invest in this sector.
The government also supports the hotel business in Dubai for foreigners because of the foreign investment they bring with them. The hotel business cost depends on the type of accommodation places you are setting up. The type of accommodation places may include:
- Resorts.
- Hostel Apartments.
- Hotel.
- Guest houses.
- Beach houses.
- Holiday homes.
- Youth hostels.
- Luxury Resorts.
Out of all the above Holiday Homes are considered as the best business hotel in Dubai.
Rules and Regulations to Start a Hotel Business in Dubai
To start a hotel in Dubai you need to acquire a proper license for that purpose proper rules and regulations are set by the Department of Tourism and Commerce Marketing (DTCM). To acquire a proper license, you must follow the below-mentioned rules:
- You must have a bank guarantee for the issuance of the hotel license in Dubai.
- The minimum size of the hotel room is set at 30-35 SQ meters by the Department of Tourism.
- The data of every guest/ tourist should be stored securely.
- The manager you hire must have a Certificate of Good Conduct
Process to Start the Business
Before starting a business in Dubai you need a trade license which is a legal and judicial requirement. However, in the case of the hotel business, it is a bit different, in general, you need a tourism license as per legal and judicial requirements. Below are the by which you can start a hotel business.
Acquire Initial Approval
All the necessary documents should be kept ready if you want to get the initial approval. The Department of Economic Development (DED) is responsible for giving initial approvals for setting up a hotel business in Dubai. Following are the documents that you need to acquire for the initial approval.
- You need to submit your passport copies.
- Submit an application form provided by DED.
- Submit a passport copy of your manager along with experience letters and educational certificates.
- Submit the building completion certificate, blueprint of your location, and plot maps as they are mandatory.
- You also need to acquire a Certificate of Conduct for your hotel from the Department of Tourism.
- Approval from the general police headquarters in Dubai.
Get Your License
As mentioned above before starting a hotel business a tourism license is required. For acquiring a license following requirements need to be fulfilled.
- Give the fee receipt of the initial approvals.
- Submit the receipts of all the related payments you made and your trade name.
- You have to register on the EJARI platform which is a platform that requires all kinds of property to be registered on the platform. After you have registered you will get your EJARI number.
- You will also receive a tenancy contract which you need your landlord to approve within 90 days.
- Acquire from all the legal departments for all kinds of waste management, public health, sanitation, and other things.
Choose a Location
If you want to start a hotel business the most important thing is choosing a location that is suitable for your hotel. You should conduct a proper survey before you finalize the location. Dubai Mainland and Free Zone are most likely a suitable place for this business.
It is always better to conduct a proper survey and get in touch with experienced business owners who are already working to help you select an appropriate place. After selecting the address make sure to locate the address on the maps.
Hire a Manager
If you want to set up a hotel business you need to hire a manager with all the necessary qualifications. After You are sure about the qualifications of that person only then can you hire him as a Manager. Your chosen manager must also have relevant experience in this business and know how the market works.
The manager must be a master in his craft because he will play a key role in decision-making and meeting the requirements of the hotel. The behavior of staff and quality of service to cleanliness and hygiene all will be checked and managed by him. So make sure you pick the right person that fits in this place as per your needs.
Architectural Requirements
There are some special architectural requirements set for opening a hotel:
- The drainage pipe should be at least 2 inches from the wall.
- All walls, floors, and roofs should be washable and fireproof.
- Storage for all types of food items is necessary.
- Provide a good ventilation facility in your building.
Final Verdict
All kinds of rules and regulations are mentioned above if you want to start a hotel business in Dubai. You can also contact Al Riyady if you are planning to start a hotel business in Dubai.
With many years of experience in setting up successful businesses in Dubai and experts on board, we can give you the best service that you want. From conducting a market survey and consulting with an expert business consultant we will guide you through this complex and confusing process.
The experts on board will help you in ensuring a smooth launch of your hotel. It is a very beneficial business and the profits from this are way more than starting a hotel business in Dubai cost.
