How to start a travel and tourism company in the UAE?Blog
The UAE’s tourism industry has been in the ascendance for some time now. Dubai alone saw 15m overnight visitors in 2016, up 5% on the previous year. With Expo 2020 on the horizon, this figure is expected to reach 20 million by next year.
This translates to big business. According to the Official Portal of the UAE Government, the direct contribution of the tourism sector to GDP is almost AED 70bn (USD 19bn). This is predicted to increase to AED 116bn (USD 31.6bn) by 2027.
Naturally this presents an incredible opportunity to the UAE’s entrepreneurs. If you have a passion for travel and the business knowhow, it’s easy to launch a travel agency in the UAE.
How to open a travel and tourism company in the UAE
As with starting any business in the UAE, there are few steps you need to take before you can apply for your business license.
Step one is to establish your business activity – i.e. travel agency, tour operator, travel and tourism consultancy. This activity must align with one of the thousands permitted within the UAE. To ensure your license covers you for your chosen business activity, it is a good idea to work with a business formation company at this stage who can suggest those that align best with your business.
The next step is to choose a company name. This takes a little more thought in the UAE than in other parts of the world. Why? Because the UAE has a strict, yet easy to follow, set of naming conventions. Once again, an expert in company formation can help you make sure you adhere to them.
In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting. You must also check that your chosen name is available to register.
Applying for a travel and tourism license in Dubai
Want to know how to open a travel and tourism company in the UAE? The first step is to apply for your business license.
The easiest way to do this is to apply to a UAE free zone, such as Fujairah Creative City. You can apply directly to the free zone or work with a company formation expert who can manage the entire application process on your behalf.
There are plenty of great reasons to establish your company in this particular free zone. Businesses setting up in Fujairah Creative City benefit from customs tax exemption, no foreign currency restrictions, no paid-up share capital requirement, no annual audit and an easy incorporation process. There is also no need to be present in the UAE to establish your new company.
You’ll also need to apply to the Department of Tourism and Commerce Marketing (DTCM) for your specific tourism license. There are three types to choose from: trade license for an outbound tour operator, trade license for an inbound tour operator, and trade license for a travel agency.
These license types are fairly self-explanatory. The outbound license allows you to organise trips out of the country, the inbound license allows you to organise trips for visitors to the country and the trade license for travel agency allows you to sell tours, plane tickets and visit visas.
Whichever license you require, the process follows the same steps. Simply submit your application form, a copy of your passport, an outline of your business plan and a clean criminal record certificate to the DTCM.
As well as your licenses, you’ll also require a visa to work in the UAE. Most free zone packages come with visa eligibility. You can also sponsor your dependants for their visas too. This follows the same process whether you wish to sponsor domestic staff or a child or spouse.
If working in a free zone, your account manager can help you with this process, managing your visa and license applications on your behalf.
Cost of a travel agency license
The cost of a travel agency license is largely dependent on a number of factors including company size, number of owners, business activities and more.
As a general rule of thumb, however, the travel agency license cost in Dubai starts from around AED 20,000 for a single owner with eligibility for one visa.
Ready to launch your travel business in the UAE?
If you’re asking how to start a travel agency business, the answer is fairly simple. The company formation process is not overly complex, however it does require a level of prior knowledge of the process. What’s more, it is important to note that the process is only straightforward if your license application is complete at the time of submission and free from errors.
To help you to ensure that this is the case, it’s a good idea to work with a company formation expert when establishing a new company in the UAE.
Fujairah Creative City Free Zone was launched in 2007 to help entrepreneurs save their resources when bringing their business to the region. We enable you to focus on what really matters – growing your enterprise and your bottom line, all while knowing that your business is being set up legally and compliant with the UAE government laws.
We are a team of company registration professionals who are passionate about bringing the dreams of aspiring entrepreneurs and SMEs to life.
As well as handling your license application, we can also assist with the opening of corporate bank accounts and advise on the most appropriate financial institution to suit your specific needs.
We also offer visa and immigration services and can handle all government formalities, permissions, work permits and visas applications that are required to trade in the UAE.
In short, our experts can establish your company on your behalf, make your license and visa applications, and take care of all the necessary admin – leaving you free to get on with running your business.