It is common knowledge that Dubai and the United Arab Emirates in general are popular tourist destinations. There is no doubt that people from all over the world visit the nation for its hospitality, beautiful beaches, entertainment, and safety, among other things.
The UAE tourism industry has been on the rise for some time. Dubai alone recorded 15 million overnight guests in 2016, 5% more than in the previous year. With Expo 2020 on the horizon, that number is expected to reach 20 million by next year. This means big companies. The tourism sector’s direct contribution to GDP is nearly AED 70 billion (US $ 19 billion), according to the UAE government official portal. It is projected to grow to AED 116 billion ($ 31.6 billion) by 2027. Of course, this presents an incredible opportunity for entrepreneurs in the UAE. If you are passionate about travel and business knowledge, opening a travel agency in the United Arab Emirates is easy.
At the same time, the country is home to a large population of expats with a large amount of freely disposable cash that allows them to travel around the region and beyond. robust and long-term development.
What kind of travel and Tourism Company do you want to start?
If you want to start a travel and tourism business, the first thing you need to do is figure out what type of business you want to start.
Would you like to start your typical retail travel agency or set up a website to process online hotel and ticket reservations?
Will you offer services adapted to the local market or will you expand internationally? Are you planning to offer group tours? What kind of local and international partnerships would you need before company registration in Dubai?
Most employers’ responses to the following questions are based on previous work experience. It’s quite unusual to start a travel company with no prior experience in the industry. If you have many years of experience in an IATA-accredited travel agency, you will know the agency’s processes and how to deal with hotels and airlines. If you’re making a new investment with no prior industry experience, the first thing you should do is seek advice from specialists on how to run and maintain an agency.
Depending on the type of business you are trying to start, rules may be set by the local government.
You must deposit funds with the supervisory authority, e.g. a travel agency, and ensure adequate insurance cover in the event of liquidity problems. Depending on the jurisdiction you choose, our advisors can provide you with additional information.
Discover your unique selling proposition.
Have you done your homework and are you ready to take the plunge? It is important to consider your position in the market. Too many companies have learned the hard way that “general” and “no unique selling proposition” is a formula for failure.
Consider the following fundamental question: what makes you unique in the marketplace? You need to be able to identify your “niche”, whether it be targeting a specific segment (e.g. tailored package tours for high income individuals), a growing segment of tourists visiting the United Arab Emirates (Chinese or Russian citizens recently granted visa-free entry) or business travelers. You can become an expert on a subject creating custom packages to travel around Southeast Asia on a student budget.
For example, imagine you want to address the 1825 market. If you do it right, your reputation will spread and you will be able to attract consumers without spending a lot of money on advertising. While it’s not impossible to compete with established local businesses and global brands operating through well-known websites with no differentiator, it is considerably more difficult. You get into a competition for the lowest price and the lowest profit margin.
The transaction service does not encourage long-term loyalty; it’s about money. Your unique selling points and excellent customer service can make all the difference in this situation.
Acquisition of a proper travel agency license
Most of our clients have chosen Dubai as the location for their travel and tourism business and travel agencies. Talking to one of our consultants will help you choose the best deal for your needs. You must deposit AED 100,000 with the Dubai Department of Tourism and Business Marketing to obtain a travel license with an activity (Travel Agency License or Inbound Travel Operator License). AED 200,000 deposit is required to obtain an Outbound Travel Operator license. You will be asked to submit certain documents to the Dubai Department of Tourism and Marketing that we can assist you with. Our team interacts regularly with this agency and knows the requirements for a successful application.
Set up employee visas:
Make sure you submit your application within 30 days of an employee’s entry until they can obtain a tourist or visitor visa. Simply register on the Home Office’s electronic channel portal to get an employee entry permit (another name for a 60 day temporary work visa). Once issued, employees can “change state in the country” to activate this entry permit, a critical step in obtaining a full employment visa. You need your trade license, copies of your passport and company ID, a service for business setup in Dubai with the General Directorate for Residence and Foreign Affairs (DDRFA). Remember that it is also your responsibility to obtain “OK to Board” approval prior to entry from employees from the South Asian subcontinent.
Open a company bank account:
No bank will recognize your business without a trade license, but choose your bank carefully; a bad choice can come back and bite you. Most require a rolling minimum balance of AED 1 million to AED 5000. In addition, some require proof of the residence status of at least one shareholder, others do not.
Smooth processes save time and money
There are six key steps that can help you build a successful travel company, but they come with a considerable amount of paperwork and many hidden pitfalls.
Starting Your Business
Travel and Tourism Companies must be physically located and cannot operate from a virtual location. At least 30 square meters of office space is required. However, we recommend getting in touch with one of our experts who can provide you with the most up-to-date information.
