Dedicated as one of the top tourist destinations, the region of UAE has been successfully grabbing the world-wide tourists at a spiking rate year-after-year. The tourism industry is one of the significant players in contributing maximum towards the growth of the nation’s GDP. In the year 2018, the UAE’s tourism industry contributed AED 164.7 billion to the nation’s GDP, and according to the future projections, the sector is estimated to create a count of 753,000 jobs by 2029. Another forecast carried out by Statista reveals that the direct tourism contribution of UAE is expected to be 120 bn USD by the end of 2027.
Foreseeing the industry growth, the UAE Cabinet has approved the launch of a five-year plan of tourist visa in 2020. This step would have a drastic impact on the UAE’s tourism sector. If you are dealing with the tourism business in UAE or planning to initiate one, then this guide is for you.
Sheikh Mohammed bin Rashid, the Ruler of UAE, has approved the UAE’s Cabinet’s decision regarding the visa approval. Accordingly, the move will allow tourists to enter the UAE multiple times within a period of five-years. This initiative has been made having a look at the increasing number of tourists in the core Emirates of Abu Dhabi and Dubai over 15.88 million within the first nine months of 2019. This visa will allow the visa-holders to stay in the UAE for six months.
Impact on the Tourism Industry in the UAE
The core motive of implementing this idea is to double the number of tourists in the region of THE UAE. The Expo 2020 is on the way that is projected to have a massive impact on the tourism industry as the event is expected to fetch a global crowd of 25 million tourists, over six months. By 2021, the region aims to attract more than 10 million tourists and 40 million tourists in the next ten years. Specific other initiatives taken by the Tourism sector in UAE are:
- Dubai Tourism Strategy 2027
- Sustainability Requirements for Dubai Hotels
- Increase in the Medical Tourism
- RAK 3-Year Tourism Strategy (2019-2021)
Now, with these initiatives, the business opportunities in the tourism industry have also uplifted. Business investors who have been looking forward to an investment opportunity, this is the perfect time to proceed ahead and start a business in the UAE.
How to Start a Tourism Business in the UAE?
In the ground of UAE, a business investor or owner needs to suffice the following conditions.
1. Decide the business structure for your business
The UAE allows the flexibility to business owners to choose from a range of business entities. Now, the selection procedures depend upon the number of shareholders available, along with the investment allotted. Some of the well-known business structures in the UAE are:
- Sole proprietorship
- Joint venture
- Public shareholding company
- Private shareholding company
- Free zone company
- Professional firms
- Representative office
- Limited liability company
Make sure to hold a clear concept before you choose an entity for your business.
2.Decide the Company Name, which needs to be Unique
Once you have chosen the respective business entity, decide a name for your business. Make sure that your business name stands unique from that of your competitor and shouldn’t turn out to be offensive. There are certain guidelines to be followed when deciding a company name which needs to be followed.
3.Select a Suitable location for your Business
Now, the ground of UAE has got multiple location options like Mainland, Free Zone and Offshore that provides the flexibilities to the business owners to set up their business in the region. Each of them has got significant features and needs to be evaluated thoroughly before finalizing the business location.
4.Obtain the Tourism License according to the Location Selected
Once the above tasks have been completed, the next process is to obtain the business license from the respective governed authorities. When it comes to the tourism business, a business owner can avail different license such as a travel agency license or tour guide license, depending on the business activities carried out.
5.Verify the Relevant Business Documents from the Governed Authorities
Another necessary procedure that goes along with the business license is the submission of business documents to the government authorities. Some of the essentials include:
- Duly filled application form
- Passport and visa of the company shareholders
- Address proof of company shareholders
- Certification of work qualification of business owner/ manager
- Copy of business plan
- Project report stating economic and technical feasibility of the business
- Name approval letter from the concerned authorities
- No objection letter from the Civil Aviation Authority
6. Pay the Respective Fee
After the submission of the documents stated above, you need to pay the respective license fee. Once you have obtained the same, you are good to proceed ahead with your business operations.
Now, the process highlighted in the above section has to suffice with the legal rules and regulations established by the UAE Government. Proceeding ahead with the procedures alone might turn out to be troublesome and tedious. On the other hand, while moving forward with a business consultant will ease the process at ease. The below section will highlight the important benefits that you can grab by outsourcing the business incorporation services to business experts.
Benefits of Availing Professional Services
By joining hands with professional experts, the global business investors and owners avail the following benefits:
- The incorporation procedures can be completed at a fast pace
- Business license can be attained at ease
- Experts will help you do effective business planning
- The legal proceedings can be completed within a specific duration
- Can guide you regarding the essential aspects like accounting, tax, audit etc.
In short, we can say that by investing in hiring a professional expert, you are heading towards a smart option. This will help you to utilize the business resources and the time in a much productive way. Now, are you wondering whom to contact? Well, your guide is just below who can assist you in the process.
How Can Commitbiz Help?
Commitbiz Consultants has been one of the top ten business consultants in the UAE, excelling in providing business incorporation services to numerous business investors and owners. Our business advisors aim to deliver hassle-free business setup solutions by offering tailored solutions effectively. In case you hold any query, or is looking forward to starting your tourism business in the UAE, do have a word with our advisors. Contact us today-we’d be glad to assist.