Dubai, due to its expanding economy, abundant resources and stability in the business growth, have made it the best place to set up business in the UAE. With various government policies and incentives offered, Dubai has become a business hub for all the start-ups.
One of the most remunerative economic businesses in the UAE is Hotel Business. Due to high tourist attractions and visitors around the globe, the hotel business is booming. Around millions of people visit Dubai every year for travelling, business setup, and job opportunities making Dubai in need of more number of accommodating places. A wide range of futuristic projects makes it a reason for corporate investors to attract towards this sector.
Hotel Business in Dubai
Dubai, with its fabulous locations and beautiful sea links, makes a perfect place for any accommodation industry. The tourism sector offers multiple investment possibilities to foreign investors who are looking forward to investing in this sector. From restaurants to the hotel, there are many accommodation industries in Dubai.
With thousands of visitors flying everyday in Dubai, require a place to stay that fits their income brackets. Hotels and furnished apartments in Dubai are hence the need of the hour. It is just a myth that a hotel business setup is millions of dollars investment in Dubai; whereas the objective analysis shows us the contrary. According to the survey made in the year 2017, the growth of the hotel business in Dubai has increased by 5.6 per cent.
There can be different kinds of accommodation places that can be setup under hotels:
- Hotel Apartments
- Youth hostels
- Holiday homes
- Vacation homes
- Beach houses
A foreigner who wishes to invest in Dubai can engage in the categories of hotels mentioned above. The hotels are further classified into 1 star to 7-star hotels. These are divided from standard to deluxe categories. Establishing a hotel can be hassle-free if you are well versed with all the legal formalities.
Steps to Setup a Hotel Business in Dubai
Before setting up a hotel business, you need to follow specific steps and regulations, as mentioned by the authorities.
1.Compliance with all the Regulations
To set up a hotel, the first set is to register the hotel by the rules and regulations prescribed by the authorities. In Dubai, the Department of Tourism and Commerce Marketing (DTCM) has made specific rules that are to be followed while setting up a Hotel Business.
- Bank guarantee from the investors or owners should be given before issuance of the tourism license
- The minimum size of a hotel room should be 30sq meters
- Provisions should be made to maintain guests data
- Prices of all the packages must be displayed accurately
All the statutory requirements must be adequately fulfilled while setting up the business. These requirements are more or less the same for all the business setups. For a hotel business, you need to have a tourism license. All the details should comply with the legal regulations of the government.
3.Manager to be Appointed
For regulation of a hotel business, a manager must be selected. The manager will be responsible for all the activities in the hotel. The manager is required to keep a check on all the necessities of the hotel. Manager will be a qualified person with approved certification. A prior appointment of a manager is advised as he can help for initial approvals and documentation process.
The manager appointed can get the initial process of the approval started. So appointing a manager in the initial level is very beneficial. Permissions are required on documents by the authorities. Following are the requirements
- Application form to be filled from the DED
- Copy of the applicants' Passport or ID should be submitted
- Locations and blueprints copy must be given
- Plot maps and building completion certificate to be provided
- Certificate of good conduct must be approved by the DTCM
- Classification card for the hotel business must be issued
- Approval from the Dubai General Police Headquarters must be taken
The most crucial step to carry out any business is to get a license to run that business. To set up a hotel business in Dubai, you need to have a Tourism license issued by the Department of Tourism and Commerce Dubai (DTCM). After submitting all the documents, your license will be issued within one week of approval of documents.
Documents Required for License Approval
- Receipt of fee from initial approval
- Certificate of trade name
- Related payment receipts
- No-Objection certificate (NOC)
- Three months of minimum tenancy agreement copy
- Ejari certificate copy for the hotel property
- Documents that were submitted for initial approval and other certificates
- Approval from Dubai Municipality and other related bodies for sanitation and waste management and public health.
Above mentioned are the steps required to be followed for setting up a hotel business in Dubai. These steps are easy to follow but can have complexities. To avoid any such issues, it is advisable to take help from the consultancies. Our advisors at commitbiz, are here to help you solve any query or doubt relating to business setup in Dubai. Our experts are just one step to help you feel free to Contact us- we are here to help.
What are the Architectural Requirements for starting a hotel business in Dubai?
Here are the architectural requirements for every Dubai based hotel business -
Your Kitchen should be around 300 to 380 square feet.
Your hotel should have a storage facility for every type of food.
Drainage pipes need to be at a minimum distance of 2 feet from the Hotel walls.
There should be proper ventilation systems, and also a chimney.
Floors, roofs, and walls should be washed well, shouldn’t absorb water, and need to be fireproof.
There should be separate washbasins for washing utensils, meat, fruits, and vegetables.
What is the price of a hotel license in Dubai?
The price for your hotel license will fall between AED 35000 (USD 9528.74) and AED 45000 (USD 12251.23).
How profitable is the Dubai hotel industry after the pandemic?
The hospitality industry in Dubai is growing at a remarkable pace since the Dubai Expo 2020.
The occupancy rate during the last quarter of 2021 was not 50%, 60%, or 70% but more than 80% (on par with 2019).
The Central Bank is estimating Dubai’s Hospitality industry to grow by 2.3% in 2022.
This shows that the industry has tremendous untapped business potential.
Which are the Top 7 newly opened hotels in Dubai 2022?
- Marriott Resort Palm Jumeirah
W Dubai - Mina Seyahi
Hyatt Centric Jumeirah Dubai
25hours Hotel Dubai One Central
Anantara World Islands Dubai Resort
All the top-notch hotel businesses in the world are opening their branches in Dubai.
What are the regulations for starting a Dubai hotel business?
If you’re opening your Hotel on a Mainland then you’ll have to appoint a Local Agent who should be a UAE national. But for Freezones, there is no need to do so.