Tourism License in Dubai, UAE: Everything You Need to Know

The UAE is a vibrant and sought-after tourist destination, with millions of visitors travelling to this country each year. For the first half of 2024, Dubai welcomed more than 10 million tourists and the tourism market is expected to grow by 3.93% per year in 2024-2029. The UAE ranks among the top global tourist hotspots, recently landing in the top 10 in the 2023 World Tourism Rankings, driven by robust tour sales, which exceeded $24 billion in 2023. This thriving tourism landscape presents an excellent opportunity for entrepreneurs to tap into this profit-making market through the acquisition of a travel and tourism license in Dubai.

The UAE government has rolled out various tourism initiatives aimed at enhancing the visitor experience and promoting business growth. They include simplified licensing processes, tax incentives for foreign investors, and a commitment to improving infrastructure and hospitality services. By obtaining a Dubai tourism license, you can establish a promising business while capitalizing on the growth potential of this flourishing sector.

What can I do under a tourism license in Dubai?

With a business license for tourism activities in Dubai, you can offer a wide range of services. Whether you're interested in starting a small tourism business, operating tours, managing a travel agency, or organizing leisure activities, the possibilities are vast.

Types of tourism licenses

Dubai offers several types of tourism licenses, each tailored to different kinds of services within the industry. Depending on your business model, you can choose the license that fits your needs.

a) Inbound tour operator

You can organize tours within the UAE, provide guided city tours, desert safaris, and cultural excursions. Additionally, it permits you to arrange conferences and exhibitions and offer transportation services for tourists, making it ideal for businesses targeting the domestic tourism market.

b) Outbound tour operator

With this license, you can help residents and visitors plan trips to other countries. Such operators typically create international travel packages, arrange flights, accommodation, and tours abroad. This license is essential if your business involves offering travel experiences outside of the United Arab Emirates.

c) Travel agent

You can offer a broad range of services, including the sale of tours and tickets, hotel bookings, and travel insurance. You can also provide tourism visa services, helping customers with the paperwork required to enter the UAE. This license is perfect if your business covers various aspects of travel planning and booking, both within and outside the UAE.

The procedure of getting a license

A tourism license is issued by the freezone or mainland depending on where the company is registered and DTCM (Department of Tourism and Commerce Marketing) gives a third party approval to the company, so it can operate.

First, conduct business research to determine which type of tourism license fits your plans. Once decided, choose between operating on the mainland or in a feezone. If you opt for the mainland, submit your documents to the Dubai Department of Economic Development (DED). For free zones, apply through the relevant free zone authority.

It is recommended to register a tourism license on the mainland, since operating a tourism company can come with some restrictions if done with a free zone license, especially for tourism activities within the UAE.

Next, gather the necessary documents, including your passport, business plan, and application forms. You'll need initial approvals from the registering authority, and sector-specific approval from DTCM.

To make the process easier, consider working with business consultants in Dubai. They can guide you through the documentation and approvals, saving time and minimizing errors.

Steps to apply

1. Determine the type of travel license you need.
2. Choose jurisdiction: mainland or free zone.
3. Select a company name.
4. Decide on a legal structure.
5. Gather and submit documentation.
6. Business registration and initial approval.
7. Secure an office space.
8. Receive your tourism license.
9. Set up a corporate bank account.

Documents

• Application form
• Passports and visas of shareholders
• Company owners details
• Clean criminal record certificate
• Business plan

Additional paperwork might be required, such as proof of qualifications, No Objection letters, and more.

Recent updates have simplified the process. The bank guarantee requirement of AED 100,000 to AED 200,000 has been canceled, and there is now no minimum office space requirement.

Benefits of a tourism business in UAE

1. Flourishing tourism sector

Dubai’s tourism sector is thriving, making it an attractive market for new businesses. As a high-cost destination, it offers various profitable leisure activities, such as yachting and luxury experiences. The city is especially popular around New Year’s Eve, with higher prices for services during this peak time. For many foreign tourists, navigating the Arab world can be challenging without local assistance, making your services invaluable. With stunning beaches, warm seas, elite vacation opportunities, and top-tier shopping malls, Dubai attracts millions. Moreover, it serves as a global business hub, hosting numerous conferences and international events.

2. Credibility and trust from clients

Holding a tourism license boosts your business’s credibility, giving you a competitive advantage over those operating without one. Tourists tend to place their trust in licensed agencies, as this certification assures them that you comply with established industry regulations. Additionally, such licenses safeguard consumers against potential fraud.

3. Legal business

Having a tourism license means you’re running a legal business. This not only protects you from potential legal issues but also allows you to operate confidently within the regulatory framework of Dubai. Compliance with local laws enhances your business’s reputation.

4. Favorable business environment

The UAE offers a highly competitive tax regime, making it an attractive place to open a business. The corporate tax rate is only 9% on profits exceeding 375,000 AED. For small businesses with turnover below 3 million AED, you can benefit from a 0% tax rate. Furthermore, you fully own your business and don’t need a local agent or sponsor. The environment also provides clear tax and financial reporting requirements, full repatriation of profits, and the option to maintain multi-currency bank accounts, maximizing your profit potential and operational efficiency.

License costs

The costs of obtaining a travel and tourism license in Dubai can vary, influenced by the specific type of license, the nature of your business, and the registering authority.

Breakdown of costs for different types of licenses

• For an inbound tour operator prices generally start at around AED 14,999.
• A license for an outbound tour operator usually begins at approximately AED 20,000.
• The cost of registering a license for a travel agency typically starts from AED 35,000, though this can vary based on the size of your agency and the variety of services you plan to offer​

Additional fees

• Initial approval: Usually around AED 120.
• Trade name reservation: Roughly AED 620.
• Dubai tourism authority approval: Commonly AED 10,000.

In addition to these, you should also consider the costs associated with obtaining office space, processing employee visas, and possibly engaging professional services to assist in the setup. If you opt to establish your business in a free zone, the financial implications may differ, potentially offering various benefits or incentives.

Business assistance with a travel license registration from Emirabiz

At Emirabiz, we leverage over a decade of extensive experience in supporting businesses throughout the UAE. Our deep understanding of the local market dynamics and regulatory environment enables us to provide a comprehensive suite of services tailored to your needs.

We offer the following services related to tourism businesses in UAE:

• Licensing: Navigating the complexities of obtaining your travel license.
• Visas: Facilitating the application process for employee and investor visas.
• Bank accounts: Assisting in the setup of corporate bank accounts.
• Approvals: Managing all necessary approvals from relevant authorities, ensuring compliance at every step.
• Accounting and reporting: Providing expert accounting services to maintain transparency and meet local reporting requirements.

Our industry-savvy experts are dedicated to making your business journey as seamless as possible. We are not just here for the registration process; we continue to support you even after your business is established. Our goal is to ensure that your experience is customized and aligned with your vision.

Make it your way with Emirabiz.