Starting a travel agency in the UAE

Pauline Familara
Pauline Familara
Administrator
10 October 2024
Starting a travel agency in the UAE
Content

Dubai attracts millions of tourists worldwide with its unique architecture and luxurious resorts, now iconic to the city. Its convenient location also aids in tourism growth, with approximately 30 countries reachable within a 4-6 hour flight. Currently, the UAE ranks fourth globally in international tourism revenue, highlighting the sector’s importance to the nation. By the end of 2024, the UAE’s fast-growing tourism sector is expected to contribute AED 236 billion to the economy. This booming industry will continue to open new opportunities for investors and create thousands of new jobs. Dubai will continue to establish itself as a global hub for both leisure and business tourism.

This makes the UAE an incredibly promising location for developing a tourism business. Unsurprisingly, Dynasty Business Adviser often receives inquiries on how to establish a travel agency and enter this fast-growing market.

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Setting up a travel business in the Emirates requires significant financial investment. Along with various registration costs, a non-refundable deposit ranging from AED 100,000 to AED 200,000 must be placed in a bank account, depending on the type of activity. This deposit serves as a financial stability guarantee for the company.

Additionally, certain licensing requirements must be met:

  • the owner or director must have a relevant degree in the industry (a bachelor’s degree is sufficient), which must be verified with a diploma;
  • In certain areas of tourism, directors may need at least three years of experience. This could mean working within a travel company or having proven experience running a business in the tourism field supported by official documents;
  • All staff in management roles must provide proof of no criminal record, which can be obtained from the local police.

If these initial conditions are met, it may be worthwhile to continue exploring the steps for opening a travel agency. The following sections highlight the benefits of making this move.

Benefits of running a tourism business in Dubai

AdvantageDescription
Growing marketDubai’s tourism sector is rapidly developing. The city attracts millions of tourists each year with its luxurious hotels, large-scale events, and unique attractions. In 2023 alone, Dubai welcomed 17.15 million tourists, 19% more than in 2022. Tourism’s contribution to the UAE GDP is expected to keep growing.
No income or capital gains taxThere is no capital gains or income tax in Dubai. The only tax businesses encounter is a 5% VAT. By the way, it’s among the lowest globally.
Well-developed infrastructureDubai provides extensive transportation networks, international airports, excellent hotels, restaurants, and conference centers. All this enables high-quality event organization and service for various needs.
Government supportThe government actively supports tourism development through initiatives to ease visa processes and investments in infrastructure improvements.
Global reputation and safetyDubai is well-regarded for its safety for tourists. This makes it a highly attractive destination for tourists from around the world.

Let’s look at what needs to be done to open a travel agency.

Getting a tourism license

Operating a business without a license in the UAE is illegal. So, securing the appropriate license is the first step.

Types of tourism licenses

There are three primary categories for tourism companies in Dubai. Businesses are restricted to offering only the services specified in their license. Companies can choose one or all three at registration.

Types of tourist sectors in the UAE:

  • travel agency — acts as an intermediary, selling tours and services provided by tour operators. Travel agencies offer clients pre-arranged trips, ticket bookings, hotel reservations, and excursions.
  • inbound tourism operator — organizes local services such as visa arrangements, local tours, transportation, and accommodation within the UAE.
  • outbound tourism operator — manages tours and related services for travel outside the UAE.
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Step-by-step guide to acquiring a tourism license

The licensing process in the UAE includes the following steps:

  1. Register the company name.
  2. Define the business activity.
  3. Establish the legal structure.
  4. Choose an office location.
  5. Prepare documents for preliminary registration.
  6. Obtain approval from the Department of Tourism and Commerce Marketing (DTCM).
  7. Pay the licensing fees and receive the license.

Steps overview

  • Step 1. The company name must be unique within the UAE and clearly reflect the business activity. Consider including words like “Travel,” “Tours,” or “Holidays.” Register the name with the Department of Economic Development.
  • Step 2. Decide on the type of tourism business you wish to run – whether as an intermediary, event organizer, or service provider within or outside the UAE.
  • Step 3. Choose the legal structure, which can be an LLC, a representative office, or a branch of your foreign company.
  • Step 4. The minimum office size is 30 m². If you have multiple types of activities, each requires a minimum of 30 m². An office is essential for opening a bank account and securing the required irrevocable deposit.
  • Step 5. Passports, diplomas, and certificates obtained in languages other than Arabic or English must be translated and certified.
  • Step 6. The DTCM will review the company’s compliance with qualification and financial requirements (hence, the deposit).
  • Step 7. After completing these steps and obtaining the necessary approvals, you’ll receive a license to legally operate your tourism business in Dubai.

Required documents

To obtain a tourism license, prepare the following:

  • copies of the founders’ passports;
  • educational and professional qualification documents (diplomas, certificates);
  • copies of employee visas;
  • company name certificate;
  • office lease agreement;
  • bank statement showing the deposit account.

Conditions for issuing a tourism license

Above, we discussed how to obtain a travel agency license in the UAE: the steps and documents needed for this process. To expedite the process and increase the chances of getting a license, consider these additional requirements:

  • Наличие специального образования, желательно высшего. Преимуществом будет дополнительное прохождение специализированных курсов в DTCM.
  • Менеджеры и сотрудники должны иметь от 1 до 3 лет опыта работы сфере туризма.
  • Обязательно открытие физического офиса, который соответствует необходимым требованиям по размерам и оборудованию.
  • Требуется страхование профессиональной ответственности для защиты от претензий клиентов в случае срывов поездок или проблем с оказанием услуг.
  • Наличие банковского депозита.

Сколько стоит открыть свое турагентство?

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Основные затраты на открытие туристического бизнеса это:

  • Оплата лицензии — от 13 000 до 17 000 AED за каждую. Стоимость зависит от региона регистрации и видов услуг. Следует учесть, что любая бизнес-лицензия в ОАЭ продлевается ежегодно.
  • Аренда офиса — от $500 до $800 в месяц за квадратный метр. Аренда оплачивается, как правило, ежегодно. К сумме добавляются коммунальные услуги и телефония. Также в Дубае предусмотрен муниципальный налог в размере 10% от годовой арендной платы. Его оплачивает арендатор. Налог добавляется к коммунальным платежам.
  • Страховочный депозит — от 100 000 до 200 000 AED.
  • Услуги консалтинговой компании — без неё процесс регистрации иностранного бизнеса сопровождается огромным количеством задержек и сложностей. Стоимость зависит от пакета услуг. В среднем — около $4000-$6500.

Ко всем платежам нужно будет добавить 5% НДС и различные государственные сборы, сумма которых зависит от региона. В среднем это около $850.

Как упростить открытие туристического бизнеса?

Самостоятельное прохождение всех процедур для получения туристической лицензии в Дубае может стать сложной задачей. Это требует не только соблюдения местных законов, но и знания специфики работы с государственными органами. Ошибки на любом этапе могут привести к задержкам или отказам в выдаче лицензии. Однако обращение в консалтинговую компанию, такую как наша — с опытом регистрации бизнесов любого уровня сложности, — значительно упрощает весь процесс.

Мы можем помочь как с регистрацией бизнеса «под ключ», так и с решением отдельных вопросов, таких как:

Наши эксперты в области финансовых вопросов и международного права, владеющие арабским и английским языками и хорошо ориентирующиеся в местных законах, помогут вам избежать бюрократических препятствий и успешно открыть бизнес.

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