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Tourism license in Dubai – Special conditions for Tour Operator (Inbound and Outbound)

Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) has announced that companies in the Dubai tourism industry will soon be able to re-collect the bank guarantees they had earlier given when they started doing their business in Dubai.

This means that entrepreneurs who are looking to start a business in Dubai do not need to provide a massive amount as a guarantee before obtaining a tourism license in Dubai.

Dubai’s DTCM has commenced efforts to release Dh250 million in bank guarantees that have been secured from tourism-related service providers, after a decision to scrap the requirement to start a travel and tour business in Dubai.

Previously, department of Economic development DED Dubai has put up a precondition for tourism companies in Dubai (including inbound and outbound tour operators) that in order to secure a trade license in Dubai, they will have to provide a bank guarantee to Dubai Tourism ranging from AED 100,000 to AED 600,000 depending upon type of business activity.

Furthermore, the minimum space requirement of 300 sq. ft. has also been removed.

Also, documents such as experience letter and educational certificate for the managers in the same field are also not required anymore. This means that more investors in the field can also be now eligible for Tourism license in Dubai.

Expected outcome of the new measures:

The move is expected to,

  • To lower cost of doing business in Dubai. For all new investors and entrepreneurs looking to start business in Dubai are no longer required to provide such bank guarantees to Dubai Tourism whether they are opening a tourism establishment or going to offer specific travel or tour-related services and activities in Dubai.
  • To boost liquidity of local businesses in Dubai because when Dubai tourism will refund bank guarantee to the tourism companies they will reinvest these much needed funds in their business and grow their services.
  • Over 2000 travel and tourism agencies working in Dubai will benefit from this measure.

Also Read: A significant impact of cost on startups in the UAE

Tourism Industry in Dubai and UAE

The Travel & Tourism industry has a high significance in sustaining economic development of Dubai. According to the Department of Economic Development’s (DED) Dubai Economic Report 2018, tourism sector contributed 5% in the GDP of Dubai and 11.3% to UAE’s GDP. The sector grew 8% in 2017 as compared to 2.5% in 2016. Furthermore, Dubai is one of the Top 10 tourism destination cities in the world. According to Euromonitor International ‘Top 100 City Destinations 2018’ report, Dubai is the 7th most visited city in the world, ahead of other popular cities like New York, Rome and Amsterdam.

According to UAE Department of Tourism and Commerce Marketing, 15.92 million international guests visited Dubai in 2018 which reinstates the city’s position as global destination of choice for another year. The growing momentum of international visitors in Dubai is in line with Dubai Tourism Vision 2022-2025 i.e. to position Dubai as the ‘first choice’ for the international leisure and business traveller.

So what are the factors that have led Dubai in becoming a huge tourist attraction?

The establishment of state of the art infrastructure and landmark projects such as Burj Khalifa, Dubai Mall, Burj al Arab etc. together with marketing initiatives by Emirates and DTCM have been the key drivers for Dubai’s tourism industry.

On the other hand, high disposable income and a high proportion of expats driven by employment or for new business setup in Dubai are the key drivers for outbound travel from Dubai.

Lastly, a fervent government focus to develop tourism sector by diversifying into new tourism segments like cruise, medical tourism, sports tourism, etc. is anticipated to further drive growth of the industry.

Read More: Dubai as a magnet for tourists from all around the globe & tourism industry’s effort on UAE

The waiving of bank guarantee requirement for tourism firms forms part of the ongoing efforts of Dubai Tourism to remove barriers to entry and growth for SMEs and start-ups as well as reflects their commitment in bringing relief to small businesses and entrepreneurs by minimizing red tape and introducing simple, low cost and hassle free processes for Business Registration Dubai.

In order to make it further easy and quick, you only have to contact Business Consultants Dubai. We have the expertise in handling all matters related to business setup in Dubai and UAE.  We have multiple satisfied clients having tourism and travel licenses obtained via us and are now running their businesses successfully in Dubai and other parts of UAE.

You can contact us for further information or send us your query at our email address info@businessconsultantsdubai.com.

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