How much does it cost to open a travel agency in UAE?
Dubai is a leading destination for tourists, thanks to its iconic landmarks, beautiful beaches, favorable climate, and ever-evolving vacation culture. According to the UAE Government's Official Portal, the tourism sector contributes almost AED 70bn (USD 19bn) to the country's GDP. By 2027, this figure is expected to reach AED 116bn (USD 31.6bn). Entrepreneurs looking to tap into this burgeoning market would be wise to consider starting a tourism company in Dubai as soon as possible.
Starting a new business can be overwhelming, and there are often many questions to consider. For example, how can one begin a travel and tourism business in the UAE? What is the cost of opening a travel agency in the UAE, and how does one go about setting up a travel agency and tour operator? Additionally, what is the process for obtaining a tourism license in the UAE, and how can one start a travel agency in other locations like Abu Dhabi, Ajman, or Sharjah?
The answers to these questions can be found with a bit of research, and it's essential to fully understand the legal and regulatory requirements before beginning a new venture. With the right preparation, entrepreneurs can successfully navigate the startup process and take advantage of the growing tourism industry in Dubai and the UAE.
What you need to know before setting up a Travel and Tourism Company in Dubai
Dubai is a popular destination known for its remarkable landmarks, warm beaches, and welcoming climate. The tourism sector is a significant contributor to the country's GDP, with a direct contribution of almost AED 70bn (USD 19bn) predicted to increase to AED 116 bn (USD 31.6bn) by 2027. Hence, it is a good idea to start a tourism company in Dubai as early as possible to take advantage of this thriving industry.
When starting a travel and tourism company in Dubai, there are certain factors to consider. Firstly, the manager of the company should have a minimum of 3 years' experience in managing a travel/hospitality business and possess a relevant degree in Tourism. A police clearance from the Dubai Police Office is also necessary for all partners and the manager. Additionally, the office space of the company should not be less than 30 square meters. Depending on the chosen business activity, an irrevocable bank guarantee deposit of between 100,000AED to 200,000AED is required. Furthermore, a tourism insurance policy is mandatory to cover all risks associated with the tourism industry.
There are three main activities to choose from when forming a tourism company - inbound tour operator, outbound tour operator, and travel agency. Each activity allows for different services such as organizing local incentive tours, handling visas, transportation, accommodation, and selling tourist programs abroad. All three activities require a license and documents such as a completed tourism license application form, valid passports of applicants, certification of work qualification or bonafide by the manager, certificate of good conduct, a detailed project report, and a no objection letter from the Civil Aviation Authority.
The process of setting up a travel/tourism company involves establishing the business activity, choosing a company name, applying for a business license, applying for a tourism license, setting up employee visas, and opening a corporate bank account. The costs for each activity vary, with deposits ranging from Dh100,000 to Dh200,000 depending on the business activity chosen.
There are several advantages to starting a tourism business in Dubai, such as optimal growth possibilities, an investor-friendly political regime, 100% expat investment allowance, increasing tourist foot traffic every year, and the option to choose a tourism license according to your preference. Furthermore, the business setup process is easy and hassle-free.
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