How to Start a Tour Operator Business in Dubai?

by Zaara 22, Oct 2019

Dubai used to be known solely for its oil sector.  Those days are now well in the past as Dubai has now expanded and developed into a global financial hub as well as one of the most visited places in the world. Dubai is only 8 hours away for more than half of the world population. This makes it a central destination to meet up. With the numerous activities and several kinds of multicultural experiences Dubai offers, crowds have flocked into the UAE in the recent past. Dubai in itself has become an investor’s capital with businessmen all over the world starting businesses in Dubai. Tour operators in Dubai are extremely successful.

With the tourism sector booming in Dubai, the future looks bright for those looking to start a Tour Operator Business in Dubai. However, there are a few formalities to be completed before a legitimate business can be started. It always advised seeking help from a business consultancy to avoid any mishaps with respect to the part of the entire process.

For a travel agency or a tour operator business, the license needs to be obtained from the Department of Tourism and Commerce Marketing.

There are two kinds of business licenses    with respect to tour operation, them being

  1. Outbound and Inbound Tourism
  2. Travel Agency Business

Out -Bound and Inbound Tourism in Dubai

This Tour license in Dubai  is mandatory if the business will involve activities that arrange International trips, tours within the UAE. Activities like sight-seeing and international exhibitions are covered here.

For obtaining this license, a few documents have to be submitted. These include:

  • A completed application form
  • Copies of passports of all applicants
  • A professional Qualification certificate of the manager( Including education and experience certificate)
  • No Criminal record of any of the representatives of the company and a certificate proving this
  • A report approving the technical feasibility of the project
  • Processing fee: An amount of 100,000 AED needs to be submitted Department of Tourism and Commerce Marketing for inbound tourism, however for an outbound trip the amount is 200,000 AED.
  • A Non- Objection certificate from the Civil Aviation Authority

There are a few other pre-requisites for becoming a tour operator in Dubai as well. The manager of a company is required to have at least 3 years of experience with a degree or diploma in travel and tourism from a recognised university. However, if the manager does not possess any degree, then an experience of 5 years in the tourism field is a must. An approval fee needs to be paid. Further, the registration of the name of the trade agency needs to be completed. An insurance policy, as well as blueprint of the office premises, is a must. A lease contract also needs to be shown. The office should fit the requirements as stated by the authority with respect to size.

The next step would be to create a functional, user-friendly website. It is always advised that the site should have online booking facilities, and should have valuable information for any person seeking the same. This will help in improving the brand name as well as divert traffic thereby increasing the business. If done in accordance with all the laws, the tour operator business can be very profitable

Travel Agency Business

A tourism operator relies on the assistance of travel agencies especially with operational activities like helping with visa support, tours with tour guides, and handling transport. Travel agencies have to submit similar documents as the tour operator. This includes approval fee, lease contract.

Key Points

  • Choosing the right bank: Financial dependency is integral for any business, but it is most important to choose a bank that is apt for the activities conducted by the enterprise.
  • Business Plan: It is important to draft a key business plan that has taken all the factors of manpower, industrialisation and economy into account.
  • Service Contacts: It is always important to have service contracts in the region of this tourism. A network must be built
  • Knowledge of all commercial Laws
  • All the activities have to be insured fully to avoid unforeseen damage
  • Engaging actively with clients and follow-ups with regard to every aspect of any planned trip is important.

It is always advisable to have back up plans with respect to any potential trip as due to unforeseen circumstances there may be logistics failure or any other fall-backs.

Need Help?

Setting up a travel company might be a tedious job because of the individual aspects that are present in the business. It can be the cab service, food service, hospitality and many other things. For one individual to handle all the prospects of setting up a tour operating business might be time-consuming. However, the team at Commitbiz are experts when it comes to business incorporation. Feel free to contact us anytime and we’d be happy to assist you with all your queries and processes.