Dubai in the United Arab Emirates has truly become a world hub for every kind of business imaginable. Due to its diverse expat population, strategic location, state-of-art infrastructure, skyscrapers that bring the world to its feet, the country is blessed with positivity. It has urbanized itself as one of the world’s famous travel and tourism destinations. The hospitality industry has a major part to play and now has been redefined through innovation and creativity. It presents numerous investment opportunities for both local and foreign companies wishing to establish themselves in the region. With this article we bring you all the information you need to know about setting a hotel business in Dubai for the year 2019.
Classification of Hotels in Dubai
Before we dig deeper, let us first understand the basics. The hotels in Dubai are divided under various parts. If you want to start a hotel business in Dubai, it should be under one of the following categories:
- Hotel Apartments
- Youth Hostels
- Guest Houses
- Holiday Houses
A hotel is classified from 1 to 7 stars, while holiday houses are divided into standard or deluxe.
Hotel Regulations in Dubai
In order to obtain a license for your hotel business, there are a number of rules and regulations formed by the Department of Tourism and Commerce Marketing (DTCM)Dubai. Some of these regulations include:
- A bank guarantee is required before the license can be issued
- The minimum size of any hotel room may not be less than 30 square meters
- Provision of an effective program to securely store guest’s data
- All packages and prices must be correctly displayed
- The owner or the manager must have a ‘Certificate of Good Conduct’
Benefits of Starting a Hotel Business in Dubai
Hotel business will be a sure shot way to crack into this multi-billion dollars sector in the UAE. Here are a few benefits of setting a hotel company in Dubai.
1. Global Events
Dubai Expo 2020 is said to have 25 million outside visitors which is a once in a lifetime opportunity to make this business profitable than it already is. Apart from this, Dubai is also a key location for all the meetings, conferences, project presentations, and events for international organizations around the world.
2. Talented Staff
Dubai being a multicultural city is also a treasure chest for talented manpower. The investor will be able to find all the personnel right from the senior managers to service and floor staff easily with profile that fits his business model and target crowd.
3. Everyone Needs a Place to Stay
There are thousands of visitors flying in and out of Dubai everyday with every person belonging to different income class. They will, therefore require a boarding that fits their income bracket. Hotels, Motels, or Small Houses can be built to target such types of clientele.
4. Easy Set Up Process
The process to set up a hotel business is simple and straightforward with less hassles. Investors can follow the rules and regulations to get their job done without any knots in the process. Department of Economic Development (DED) is the primary authority who handles the set up process.
Procedure to Open a Hotel Business in Dubai
First thing you need to know is, unlike other businesses in Dubai which require you to have a trade license, a hotel business formation shall have a tourism license. Other than that, for the most part, the procedure is same as any other business in Dubai. The next thing is, where do you want to set up a business- Mainland or Freezone. Because rules and process varies for every free zone while mainland process is same. Let us now understand the procedure to be followed to register your hotel business.
1. Appoint a Manager
You need to appoint a manager for your hotel business with relevant qualification and approved certification through which he/she can be given a position. The manager plays an important role in terms of ascertaining the requirements of the hotel as well as aid through the process of initial approval and licensing
2. Get the Initial Approval
Initial approval must be taken from the Department of Economic Development (DED). It includes sending them the following documents attached with the application form.
- Filled application form from the DED
- ID and Passport copies of the applicants
- Blueprint, plot map, location, and building completion certificate for the hotel property
- Classification card for the hotel business
- Managers passport copy and educational qualification with experience letter (if any)
- Certificate of Good Conduct approval from DTCM
- Approval from Dubai general police headquarters
Once you submit this form and documents, DED will go through it and make a definite decision in a week.
3. Obtain the License
Hotel business in Dubai requires you to have a tourism license. To get the same, you need to have the following documents:
- Fee receipt of initial approval
- Trade name certificate and related payment receipts
- NOC in case of international group or brand of hotel
- Ejari Certification for the property
- Initial approval documents and pertinent certification
- Consent from Dubai Municipality and related judicial bodies for sanitation, waste management, public health etc
- Minimum three months of tenancy contract approved by the landlord
After submitting all the documents, DTCM will go through every document and if there are no glitches then you will get your tourism license in a week or two. The DTCM also offers e-services through which you can print your hotel license.
This information is enough for you to start a hotel business in Dubai. The procedure may seem complex and confusing at times, therefore, it is always a good idea to hire a consulting agent to handle all the procedure for you.
If you are still clueless from where to start, we at Commitbiz are here to help you. Contact us today and we will help you plan better.