It is a well-known fact that the UAE, most specifically, Dubai, is the central hot spot centre for tourism worldwide. People from various countries and all over the world travel to Dubai. The primary reason for such accessible tourism in Dubai is significant because of the hospitality, major entertainment facilities, beautiful beaches, and safety in the UAE. Henceforth, no doubt why all the budding entrepreneurs and many business investors want to set up a travel agency in Dubai.
Thanks to the tax-free lifestyle in Dubai that starting a travel agency business in Dubai is one of the wisest decisions an investor or an entrepreneur can make. However, if you plan to start or set up a travel agency in Dubai, this guide will lead to the significant factors that one should keep in mind about starting a travel agency in Dubai.
Overview of the Travel industry in Dubai
Choosing an appropriate place for your business is not a challenging task if you are thorough with the advantages of every specific site in the UAE. It is most advisable for the investors to set up a travel agency either in Dubai or Abu Dhabi as these emirates are the hub for such travel agencies.
Starting a travel agency in Dubai requires a decent amount of budget as well. To get a travel license with one activity, an amount of AED 100,000 will be required to be deposited with the Department of Tourism and Commerce Marketing. In the case of an outbound travel license, the said amount will be AED 200,000.
Business Culture and practices
The Middle East typically is considered culturally different from other parts of the world. The laws, rules, regulations, and traditions of the middle east, are so very different from those of other countries. So, business investors and entrepreneurs should get familiar with their business etiquettes' local traditions and practices. A travel agency is required to be well through with the cultural practices.
To establish a travel agency in Dubai, most travel agencies usually are either incorporated in either partnership with a local sponsor Emirati or one of the many free zones. For both these types of jurisdictions, there are certain advantages and restrictions provided by our company's website under Difference between Mainland, free-zone and offshore in UAE.
Travel Talent in Dubai
It has been assessed that most of the travelling talent is based up in Dubai and Abu Dhabi. The surprising part is that the said quality is limited. Significantly few local Emirati working in this industry, primarily ex-pats from the Indian subcontinent and Asia, comprise the travel industry in Dubai. A tiny portion of Western Europe, South Africa.
For setting up a travel company in Dubai, a critical thing required is to get an appropriate tourism license for providing the services legally. For this purpose, there are majorly three types of company licenses available in Dubai for a travel agency. These are,
- Travel Agency Activity License
- Inbound Travel Agency Operator Activity License
- Outbound Travel Agency License
One can plan a proper business plan is jotting down all the activities they will carry on and apply for the said license accordingly.
- The most common structure employed to set up a travel agency business is a Limited Liability Company (LLC).
- Next, obtain the license depending on the activity. The licenses are mentioned above for your reference
- Deposit AED 100,000 to the Department of Tourism and Commerce Marketing (DTCM)
- Submit the documents as under –
- an application form
- copies of the passports of the applicants and manager
- a family record ‘khulasat Al Qid’ and a copy of the identification documents for UAE nationals
- a notarized copy of the manager’s certificate of experience
- the owner and manager’s certificates of good conduct
- a no objection letter issued by the Civil Aviation Authority
Requirements to Open Travel Agency in Dubai
The manager of a Dubai travel agency must have three years of experience if he or she has a university diploma or a certificate in travel and tourism, or five years of experience if he or she only has a high school diploma.
In order to receive the travel license, the applicant must:
- Pay an initial approval fee
- Request the approval of the agency’s trade name
- Supply an insurance policy
- Provide a lease contract and the blueprint of the location where the travel agency will operate.
The contract must be signed for at least three months and the office space must have at least 30 meters for each activity.
Role of Travel Agent in Dubai
As mentioned earlier, the travel agent is a mandatory requirement no matter the business form chosen by the owner. The travel agent plays an important role in the company, as he or she will have to complete the following activities:
- The agent will be in charge of the sale of flight tickets;
- He or she will provide the necessary support in obtaining the travel visa;
- The agent will be in charge of securing accommodation for the tourists;
- The agent will also ensure the transportation services and guided tours (where applicable).
The travel agent must obtain a certification issued by the Civil Aviation Department in Dubai.
The travel company is a booming opportunity prevailing in Dubai. The registration process and choosing the perfect market with the appropriate legal framework can be tricky and consume much time. Therefore, it is advisable to seek expertise from a reputed business consultant company to help you with every legal formality. We at Commitbiz helps business investors and entrepreneurs in starting up a business in Dubai. If you want to set up a travel agency in Dubai and have any queries Contact Us, we would be happy to help.