Key Highlights:

• Visitor Growth: The Department of Economy and Tourism reported that Dubai welcomed 13.29 million overnight visitors from January to September 2024, reflecting a 7% increase compared to the same period in 2023.

• License Types: Dubai offers various tourism licenses, including inbound, outbound, and travel agency licenses, tailored for specific tourism-related activities.

• Government Incentives: The Dubai government provides significant support for tourism businesses, including 100% repatriation of revenues and no foreign exchange limitations.

• Annual Renewal: Tourism licenses in Dubai are valid for one year and must be renewed annually, which may require updated documentation and participation in refresher programs.

• Visitor Statistics: In the first half of 2024, Dubai recorded 9.31 million foreign overnight guests, an 8.9% increase from the same period in 2023.

Dubai is renowned worldwide as a top travel destination and a thriving business center that attracts investors and entrepreneurs from all over the world. The city’s allure as a destination for investment is especially strong in the tourism industry, which presents a wealth of lucrative prospects. 

As per the “Tourism Performance Report January – September 2024” by the Department of Economy and Tourism, “Dubai welcomed 13.29M overnight visitors in Jan-Sep 2024, with an increase of +7% compared to Jan-Sep2023.”

After all, getting a tourism license in Dubai is essential if you’re thinking about setting up a tourism business in Dubai. Today, we’ll go over how to apply for this Dubai tourism license and why it’s a wise choice for anyone hoping to take advantage of the city’s booming travel industry.

Definitive Guide to Dubai Tourism License

The Department of Economy and Tourism in Dubai, United Arab Emirates, is required to provide a Dubai tourism license, also referred to as a tourism license or tour operator license. 

This license is necessary for firms and individuals engaged in tourism-related activities, such as tour operators, travel agencies, and businesses providing inbound and outbound travel services, excursions, and event management.

A Dubai Tourism License is required to conduct business lawfully in Dubai’s travel and tourism industry and the rest of the United Arab Emirates. It guarantees that companies follow the stringent guidelines and requirements set forth by the DTCM. 

This license demonstrates a company’s legitimacy, expertise, and commitment to providing tourists and visitors in Dubai with top-notch services.

Who Should Apply for a Tourism License in Dubai?

A valid tourism license is necessary for the following kinds of businesses to operate lawfully in Dubai and throughout the United Arab Emirates:

• Travel Firms: Companies that plan expeditions, tours, and travel packages.

• Hotels: Accommodations that provide travelers with lodging services.

• Restaurants: Dining that caters to both residents and visitors.

• Car Rental Firms: Businesses that rent out cars, particularly to visitors.

• Travel Agents: Professionals who make client reservations for travel-related services like hotels and flights.

Types of Tourism Licenses in Dubai

An overview of the various kinds of tourism licenses that Dubai offers, each suited to particular commercial ventures in the travel industry, is provided below:

1. Inbound Tourism License

Businesses that plan local events or offer transportation services within Dubai must have an inbound tourism license, sometimes referred to as a tourism license for inbound tour operators. This license is appropriate for businesses that:

• Plan trips and tours around Dubai.
• Take care of the logistics and travel accommodations for visitors to Dubai.
• Plan educational, recreational, or cultural tours in the area.

2. Outbound Tourism License

Businesses that offer travel packages to locations outside of the United Arab Emirates are eligible to apply for the Outbound Tourism License. Tour operators must have this license if they:

• Create and sell travel packages for tourists aiming to visit countries outside the UAE.
• Organize all aspects of travel, including flights, accommodations, and itineraries for destinations globally.
• Often, work with international travel and tour partners to facilitate these services.

3. Travel Agency License

A travel agency license is required for organizations functioning as travel agencies in Dubai. With this license, companies can:

• Sell tickets for flights.
• Book a hotel.
• Make travel insurance and visa arrangements.
• Offer car rentals and other services associated with travel.

Benefits of Obtaining a Tourism License in Dubai

Getting a tourism license in Dubai has several advantages that can greatly improve a company’s reputation and success in the travel sector. Here are a few main benefits:

1. Government Support and Favorable Regulations

The government of Dubai offers robust assistance to the tourism industry through policies aimed at promoting the expansion and advancement of businesses.

• 100% Repatriation of Revenues: Businesses on the mainland and in free zones can repatriate all capital and profits, which offers significant financial advantages.

• No Foreign Exchange Limitations: Since there are no limits on foreign exchange, capital movement and international business transactions are made easier.

• Stable Political and Economic Environment: Foreign investment is drawn in, and the stable political environment and the fixed exchange rate between the US dollar and the UAE dirham decrease financial risks.

2. Ease of Business Setup

Tourism licenses are among the several licenses that the Department of Economy and Tourism (DET) has made easier to obtain:

• Transparent Processes: Efficiency is increased, and administrative difficulties are decreased when the charges and procedures for getting a tourism license are clear and simple.

• Supportive Infrastructure: Dubai has a plethora of resources and a supporting infrastructure to help new enterprises create and run their operations.

3. Free Zones

Dubai is well known for its Free Zones, which provide a host of benefits for companies involved in tourism:

• Specialization: Every free zone is designed with particular business operations in mind, providing regulations and infrastructure that are advantageous for specific industries.
• 100% Foreign Ownership: International business owners especially benefit from the ability to own their company entirely without requiring a local partner.

4. Credibility and Trust

A company with a license is frequently seen as more reliable and trustworthy.

• Enhanced Reputation: Having a tourism license lets clients and partners know that your company complies with the strict guidelines set by Dubai’s government.

• Regulatory Compliance: Compliance with local rules and regulations improves operational security and company reputation.

5. Networking and Collaboration Opportunities

A tourism license can lead to numerous opportunities:

• Industry Events: License holders can be able to take part in regional and global tourism-related fairs, exhibitions, and events.

• Business Connections: These platforms increase the reach and potential of businesses by facilitating networking, partnerships, and collaborations.

6. Quality Assurance and Tourist Safety

High service quality and safety are ensured by following the licensing requirements:

• Service Standards: Maintaining a high level of service and guaranteeing client satisfaction is made possible by following particular quality and safety requirements.

• Safety of Tourists: Tourist safety and security are given priority by rules and guidelines enforced through the licensing procedure, which is essential for maintaining tourism growth.

Validity of Tourism Licenses

The normal validity duration for Dubai’s tourism permits is one year. Businesses are guaranteed to adhere to the most recent rules and guidelines because of this relatively brief period. 

The one-year validity encourages businesses to evaluate and update their operational procedures on a regular basis and follow any new rules that the governing authorities may release.

Documents Required for Obtaining a Tourism License in Dubai

The following list of documents is required in order to get a Dubai tourism license:

• Completed application form
• Copies of each shareholder’s passport
• Proof of the manager’s professional and educational background
• A certificate confirming to the manager and owner of the business having no criminal records
• NOC from the Civil Aviation Authority

How to Obtain a Tourism License in Dubai

In Dubai, obtaining a tourism license requires a few crucial processes. To guarantee a seamless process, follow this guide:

Choose Your Jurisdiction: Mainland or Free Zone. Choose between operating in a free zone or on the UAE mainland. While Free Zone licenses offer advantages, including tax exemptions and complete profit repatriation, mainland licenses allow direct business transactions within the United Arab Emirates and with government projects.

Define Your Business Activity: Choose the particular tourism license category that most closely fits the activities of your company. To ensure the choice appropriately represents your intended business operations, you are advised to speak with a specialist.

Select a Company Name: Make sure your organization is distinctive, avoid names similar to well-known companies, and follow stringent standards while naming it to avoid using negative or obscene terminology. To adhere to laws, use full names rather than abbreviations whenever possible.

Obtain Initial Approval: Submit the requisite application form, which each shareholder must sign, and all essential paperwork to the Department of Economic Development (DED) to get initial approval.

Site Inspection: The DED will inspect your planned office location after first approval. Provide a thorough location map and any other necessary information to make this process easier.

Draft and Notarize the LLC Agreement: Ensure the LLC Agreement is notarized and translated into Arabic if you are founding an LLC. Additional translation is optional if the original agreement was in Arabic.

Sign the Agreement: All shareholders and their legal representatives must formally sign the LLC Agreement in person at the notary.

Submit Documents and Pay Fees: Get your tourism license, pay the necessary fees, and submit all essential paperwork to finish the procedure. Make sure you draft and deliver a tenant agreement to the DED as well.

By carefully following these steps, you can successfully obtain a tourism license and begin operating your company in Dubai’s thriving tourism industry.

Tourism Licenses Renewal Process

In Dubai, renewing a tourism license is an essential yearly process that companies must complete in order to keep running smoothly. The general procedure for renewal is as follows:

• Application for Renewal: Companies must use the Dubai Department of Economy and Tourism (DET) portal to submit an online application for a license renewal.

• Submission of Documents: Businesses may be required to provide updated documentation, depending on the type of tourism license.

• Participation in Refresher Programs: Businesses, especially those engaged in tour operations, may be required to take part in yearly refresher courses as part of the renewal process. These programs aim to update companies on developing best practices, regulatory changes, and new innovations in the tourism industry.

• Inspection and Approval: The license is renewed for an additional year if all appropriate paperwork, fees, and inspections have been successfully submitted.

Penalty for Non-Renewal

The Department of Economy and Tourism (DET) may impose fines for two consecutive years in which the tour guide license is not renewed. This highlights how crucial it is to follow license renewal guidelines in order to prevent fines.

Tourism License Cost in Dubai

Several variables can affect how much it costs to get a tourism license in Dubai. These consist of the kind of tourism-related activities the company setup, its location (Free Zone or Mainland), and size. 

The number of employee visas needed, the kind of facilities necessary to support the business operations, and the requirement for particular approvals from different governmental organizations may also have an impact on additional expenses.

Recent Statistics on Tourism in Dubai

Visitor Numbers: Dubai received 9.31 million foreign overnight guests in the first half of 2024, an 8.9% increase over the 8.55 million that were there in the same period in 2023. This number also indicates a rise of 11.4% from H1 2019 pre-pandemic levels.

Total Visitors in 2023: In 2023, 17.15 million people spent the night in the emirate, a 19.43% rise from 14.36 million in 2022.

Average Hotel Occupancy: In H1 2024, the average hotel room occupancy rate was 78.7%, which was slightly greater than 77.7% in H1 2023.

Conclusion

Obtaining a tourism license is a smart move for businesses looking to profit from Dubai’s growing tourism sector. You can start a profitable tourism business in one of the most vibrant cities in the world by being aware of the licensing procedure, getting the required paperwork ready, and following the rules. 

Dubai’s thriving industry offers countless opportunities for growth and success, regardless of your focus: inbound travel, outbound tours, or full-service travel agencies.