A Guide to Travel Agency Business in Dubai

by commitbizadmin 19, Aug 2019

A Guide to Travel Agency Business in Dubai

It is a very well-known fact that the UAE most specifically, Dubai is the major hot spot centre for tourism all over the world. 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 most importantly, 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 are planning to start or set up a travel agency in Dubai, this guide will lead to the significant factors which one should keep in mind in relation to starting a travel agency in Dubai.

Overview of the Travel industry in Dubai

Location

Choosing an appropriate place for your business is not a tough 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.

Budget

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 case of an outbound travel license, the said amount will be AED 200,000.

Business Culture and practices

The middle east typically is considered as culturally different from other parts of the world. The laws, rules, regulations, as well as the traditions of the middle east, are so very different from those of other countries. So, it is advisable to the business investors and entrepreneurs to get familiar with the local traditions and practices in relation to their business etiquettes. A travel agency is required to be well through with the cultural practices.

Jurisdiction

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 as well as restrictions which are 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 traveling talent is based up in Dubai and Abu Dhabi. The surprising part is that the said quality is limited. There are very few local Emirati working in this industry, mostly expats from the Indian subcontinent and Asia comprises the travel industry in Dubai. A tiny portion of Western Europe, South Africa.

Tourism License

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,

  1. Travel Agency Activity License
  1. Inbound Travel Agency Operator Activity License
  1. Outbound Travel Agency License

One can plan a proper business plan jotting down all the activities that they will be carrying on and accordingly can apply for the said license.

The Process

A business investor is required to submit the following documents with the department of economic development.

  1. Paying the initial approval fee to the DTCM
  1. Approval of the trade name;
  1. Supply of insurance policy;
  1. Submission of the lease contract with the blueprint of the location where the travel agency will be operating.

Labour Laws

  The Labour laws in the United Arab Emirates have been changing from time to time. So it is essential for an investor to keep an eye on the UAE government’s website and should be up to date with the latest changes and amendments.

Know Your Market

Although Dubai is positioned as a luxury travel market, the fact that the market incredibly prices sensitive will surprise you. Hence it is required by the business investors that whether they want to go for low-margin volume or for quality traffic in relation to the customer that are ready to pay more. This generally applies to corporate and leisure travel 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 a tricky process and would consume much time. Therefore, it is advisable to seek expertise from a reputed business consultant company which will help you with every bit of the 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.