Dubai is one of the world’s most popular tourist locations, making it an ideal location for establishing a travel agency. When starting a travel business in Dubai, you must determine whether you want to operate as a single person or an LLC. It is because the licensing requirements for a single proprietorship are less strict than those for an LLC. In a sole proprietorship, the tourism business owner should also be a qualified travel agent.
Growth Of Tourism In Dubai
The tourism attractions are what most people think of when they think of Dubai. As a result, Dubai’s travel and tourism businesses are continually in the spotlight. The UAE government is devoting significant resources to the growth of the tourist industry. The combination of these elements makes it an appealing location for business setup in Dubai.
For quite some time, the tourist business in the United Arab Emirates has been on the rise. In 2016, Dubai alone welcomed 15 million overnight tourists, increasing 5% from the previous year. This amount is likely to surpass 20 million in the next year, with Expo 2020 on the skyline. It’s simple to start a business in Dubai if you have a passion for traveling.
Benefits Of Starting A Tourism Business In Dubai
Some benefits of starting a business in Dubai based on travel and tourism are:
- Tourist accounts for about 10% of the UAE’s GDP, and it is estimated that tourism growth in Dubai is expanding at a rate of nearly 3% each year.
- Dubai welcomes visitors from all over the world and the number of visitors to Dubai is growing by the day.
- Many oil and gas businesses have their headquarters in Dubai, and gasoline is cheaper here than in other nations, making tourism and transportation more affordable.
- Almost every sort of business setup in Dubai has a zero-tax policy.
- Dubai’s government allows for 100 percent repatriation of revenues and profits from businesses established in Dubai.
Requirements To Open A Tourism Agency In Dubai
If the supervisor of a Dubai travel agency has a university diploma or certificate in travel and tourism, he or she must possess three years of experience but if the manager simply has high school graduation, he or she must have five years of experience.
The following documents are required to open a tourism agency in Dubai:
- A filled-out application form
- A copy of the intended owner’s passport
- 2 passport-size color photographs
- 2 passport-size color photographs
Steps To Open A Tourism Business In Dubai
To establish a tourist business setup in Dubai, you’ll need to follow these steps:
- Register your company with the Department of Economic Development (DED).
- Register your company with the Department of Tourism and Commerce Marketing in Dubai.
- Make an application for the appropriate sort of tourism license.
Applying For Tourism License In Dubai
To open a travel agency in Dubai, you must first obtain a license. And following these procedures will assist you in obtaining it.
- Select the type of tourism license you require among the three:
- As a tour operator specializing in inbound travel
- As a tour operator specializing in outbound travel
- Working as a Travel Agent
- Assemble the necessary documents
- Comply with all specific requirements
- Fill out the application and pay the required payments.
Commercial Activities Under Tourism License
The tourism department of Dubai has established numerous sorts of activities that a travel agency might deliver to its consumers to improve the country’s travel business. Commercial Activities that come under tourism license are:
- Buying and selling airline tickets
- The provision of travel insurance
- Using a website to sell tourist packages
- Assisting in the visa application process
- Developing tourism packages and promoting them through various mediums
- Providing options for accommodation
Cost Of Starting A Tourism Business In Dubai
The following things will make up your overall costs when you start a business in Dubai based on tourism:
- AED 13,000 – 17,000 for a license
- AED 30,000+ for a local partner
- Office rent: AED 50,000 – AED 60,000+
- AED 100,000+ for irreversible guarantee
- 5,000 AED for NOC
You will be able to budget your tourism business setup in Dubai if you keep all of these facts in mind.