Tourism, one of the largest industries of the world, has been considered as a favourable businesses option when it comes to the United Arab Emirates. Seeking a possible ground in the other Emirates, the tourism industry has also found RAK as a platform of growth. Apart from increasing the number of tourists to the destination, the sector creates a home of employment and enhances the overall GDP. Holding a fascinating history and culture of around 7000 years old, the region turns out to be a perfect gateway for the tourism industry. With a few kilometres away from Dubai, the area of RAK provides enormous business opportunities for global investors to come forward and invest in the tourism industry.
Tourism Industry in the UAE
Imbibing endless attractions in the region of UAE, the country stands to be a perfect platform when it comes to the tourism business. The country has been continuously implementing multiple strategies to boost the tourism industry that plays a crucial role in economic diversification. According to a study carried by Future Brand, the UAE has been positioned as 16th out of 75 countries dealing in the tourism industry. The tourism industry stands as one of the top sectors contributing to the nation’s overall GDP. By 2026, the number of international visitors in the UAE is expected to hit 30.94 million fetching an amount of AED 167.7 Billion.
Now, when it comes to the tourism business in UAE, there exist different levels such as Leisure Tourism, Business Tourism, Pilgrimage Tourism, etc. This brings out the multiple opportunities that an investor can think about when it comes to investment options in the tourism industry in the UAE.
Why RAK as a Tourism Spot?
The region of RAK provides a unique and special experience to the visitors, and one can be whisked away with the magical journey that the area offers. This paves out numerous opportunities for the Emirati Government to come forward to boost the industry. Keeping this in mind, recently Raki Phillips has been announced as the new CEO of Ras Al Khaimah Tourism Development Authority (RAKTDA). The centre has got multiple projections and strategies like 3-Year Tourism Development Strategy, which is expected to rope in 1.5 million visitors by 2031 and 3 million by 2025. This presents the fact that there is a massive demand for the tourism industry, and if you are planning to start a business in the RAK, then this is the right time to initiate the process.
How to Start a Tourism Business in RAK?
Well, to start a tourism business in RAK, you need to go through the following steps:
1.Decide a Budget
The first task at hand is to analyze the budget that you have for your business. Every business needs to have financial planning, and before you proceed ahead, you need to be clear regarding the financial budget for your business.
The second step is to study and understand the market that stands as your target. You need to understand the market, the competitors prevailing in the market, their strategic approaches, etc. Having an idea about this will help you to shape your business strategies, and you will be in a better position to enter the market.
3.Know Your Target Audience
You also need to have a clear idea regarding your target audience and their expectations and requirements. This will help you to provide better services that meet the customer’s expectations and ultimately helps you to grab the attention of more customers.
4.Decide a Strategic Location
The next step is to set up a physical space for your business. You need to understand that location plays a significant role in excelling a business. If your business is located where your target audience is absent, it will lead to severe loss. RAK provides a different option like Mainland, Free Zone, Offshore location that are specific to various business activities. So, you need to be careful enough in selecting the physical location for your business.
5.Select the Type of Business Entity
In the next step, you need to be clear regarding the business entity that you will opt for. The region of RAK provides numerous business entity types for the feasibility of investors. You need to clear view regarding the number of business investors that your business holds and the share capital. Depending on your business needs, you can select the preferred option accordingly.
6.Obtain the Travel License
Once you have selected the required business entity, you need to obtain a travel license to operate the business activities. To get the same, you need to submit essential documents to the Government Authorities of RAK. The set of documents include:
- A duly filed business application form
- A blueprint of your business plan
- Passport and visa of the shareholders
- Certificate of Incorporation
- Drafted MOA and AOA
- Travel License Fee
Upon the payment of the required fee, the licensing process will be initiated, and you will receive it within a few days. Once you obtain the same, you can carry out your business activities accordingly. Now, you need to understand that the company set up process turns out to be a complicated process that involves numerous legal aspects. The process turns out to be much easier if you have a business guide by your side. At Commitbiz, we are dedicated to providing the best business consultancy services. Ranging from incorporation to managing of accounting, audit, taxation, legal services, etc. We stand as a complete solution stop for your business. Our business advisors take utmost care in understanding your business requirements and cater to the needs accordingly. Contact us today to know more-we’d be glad to assist.