The tourism business in Dubai is one of the highest-earning businesses. There are hundreds of reasons that make Dubai the best city for starting a tourism related business. Its strategic location makes it a hub for travelers from Asia, Europe, and Africa.
The city has a number of exceptional facilities and opportunities that attract tourists from all over the world. Moreover, the UAE government has introduced supportive policies and offers incentives.
Also, Dubai has endless entertainment options, including beaches, deserts, shopping malls, heritage sites, landmarks, and festivals. All these factors attract tourists and make it a perfect place to start a tourism business.
According to Dubai tourism data, Dubai welcomed 14.9 million, 15.92 million, and 16.73 million international overnight visitors in 2016, 2017, and 2018, respectively.
The above data shows a steady increase in the number of tourists compared to previous years. This indicates a high chance of successful tourism businesses and an ideal opportunity for entrepreneurs to earn a good profit.
Now that you know the potential of travel and tourism business in Dubai, you may be wondering how to open a tourism company in Dubai?
This article will help you understand the procedure of opening a tourism company and provide essential information related to the tourism business.
Application Process to Start Travel and Tourism Business
Multiple steps are involved in the process of starting and registering a Travel Business. Here is a step by step guide
Choose Suitable Location
Location matters significantly in setting up a business as it impacts various factors, such as the cost of Setting up the Business, customers, taxes, and infrastructure. In Dubai, you are allowed to choose a suitable location for your business. It can be on the mainland or in a free zone. Both have some perks and cons that should be considered before selecting a location.
The mainland company is registered with DED and allowed to operate anywhere in Dubai; however, they have stringent rules that must be followed.
Free zones are centers of attraction for investors. Compared to other areas, investors prefer free zones as they provide more opportunities and perks. These include tax exemption, easy processing, better services, more flexibility, and an appealing environment.
Register Your Company
After choosing a suitable location, the next step is to register your company with relevant authorities. In the case of the mainland, you have to register with the Department of Economic Development (DED). DED will review your application and the documents you have submitted. After that, a Trading License is provided, which is necessary to operate a business legally.
Tourism License
For a tourism license, you have to submit your documents and initial approval from the DED to the Department of Tourism and Commerce Marketing (DTCM). If the application is comjjplete and the company meets the criteria set by the DTCM, then a tourism license will be provided.
Open a bank Account
Managing funds effectively without a bank account is not easy and can create problems. That’s why it is mandatory to open a bank account to operate a business in Dubai. However, applicants are allowed to choose any corporate bank.
Visa and Immigration
The visa and immigration process depends on the location you have selected. If it is on the mainland, you and other company employees must apply for a visa.
In the case of Freezone, you don’t have to apply for a visa as Freezone provides visas for both employees and company owners.
Business Regulations
It is recommended to follow all the rules and regulations set by the authorities and have insurance coverage.
Types of Tourism Business License
Dubai offers different kinds of tourism business licenses depending on the specific nature of tourism-related activities.
Inbound Tour Operator License
With this type of license, you are allowed to organize Dubai tours for non-residents. The activities in Dubai tours include booking hotels, arranging transportation, providing guidance, and other activities.
Outbound Tour Operator License
An outbound tour operator license allows you to organize tour packages for Dubai residents to travel to any country. This includes booking flights, hotels, accommodation, and visa processing.
Travel Agency License
With a travel agency license, you can act as a travel agent and sell services on behalf of other tourism companies. If you want to sell services that involve activities related to outbound and inbound operator licenses, then you should have both types of licenses.
Documents Required for Tourism Company
The following documents are required to be submitted to get a tourism license in Dubai
- Application Form
- Passport of each foreign employee
- Trade name registration
- Entry page copy (if needed)
- Business plan
- Experience Certificate of owner
- Certificate of clean criminal record of the applicant
Travel And Tourism License Cost in Dubai
Multiple factors dictate travel and tourism license cost in Dubai. The main factors are the size of the business, the type of the business, and the location of the business.
Size of the Business
A small tourism business has low initial and operational costs compared to a large business. Moreover, a large business requires large office space, additional vehicles, and equipment.
Type of the Business
Each type of tourism business needs different resources, and each resource contributes to the total cost of the company. If you offer specialized services, it demands trained employees and additional equipment. In the case of an online tourism business, you can earn more profit compared to an office setup. Also, it is easy to manage.
Location of the Business
If you choose a location near a popular tourist destination, it will cost you a lot more than other locations. The demand and rent of such locations are really high and hard to manage for entrepreneurs.
On average, the cost of a medium sized tourism business is AED 14,900. It includes
- Rent of office space
- Registration fee
- Trading license fee
- Tourism license fee
- Advertising fee
- Visa fee for owner and employees (in case of mainland)
Benefits Of Travel and Tourism Business
Travel and tourism are evergreen businesses in Dubai. Starting one in the UAE is a wise idea, as it offers several benefits.
Profitability: Tourism is a highly profitable business as it has high demand.
Stability: The consistent flow of tourists makes it a stable business.
Supporting policies: The UAE government offers supportive policies for investors.
Conclusion
Dubai’s strategic location, advanced infrastructure, and endless entertainment options attract tourists from all over the world, making travel and tourism a highly profitable business. All you need is a trading license and a tourism license from the relevant authorities. Register your business and thrive in the Dubai tourism market.
Obtaining and registering a license is a time-consuming process, and for entrepreneurs, it can be confusing and challenging. You can reach out to Al Riyady to set up your business with the least effort.
