In order to start a tourism business, the first thing that comes to mind is the cost of a travel and tourism license in the UAE. Dubai is one of the top traveling destinations in the world due to its modern skyscrapers, beaches, shopping malls, deserts, and historical landmarks.
All of these are huge attractions for foreign travelers from all over the world, creating huge demand for tourism companies. Dubai has a lot of beautiful attractions, which is why the number of foreign tourists is increasing day by day.
In the year 2023, approximately 17.15 million foreigners visited the UAE, an increase of 19% compared to the previous year. Furthermore, the government of UAE has also played a huge role in the development of the tourism industry and tourism license procedures.
Let us get to know the basics of tourism companies in Dubai and their license costs.
Tourism License in UAE and its Types
In order to legally run your tourism agency in the UAE, you’ll need a tourism license. This license is necessary whether you are a travel agent or running a travel agency in the UAE.
The Department of Tourism and Commerce Marketing (DTMC) is responsible for issuing tourist licenses in the UAE. Depending on the type of tourism activities of the company, there are three types of tourism licenses.
Outbound Tour Operator
With this type of license, the company is allowed to do outbound trips. The tour operator arranges tour packages for the residents of the UAE to travel to other countries. An outbound tour operator is responsible for the visa application process, booking flights and hotels, and other services.
Inbound Tour Operator
With this type of license, the tour operator is allowed to do inbound trips. They organize tours for foreign tourists inside the country. These arrangements include booking hotels/guest houses, making transportation arrangements, arranging conferences, and organizing exhibitions.
Travel Agent License
A travel agent license allows you to offer visiting visas to foreigners and sell flight tickets. You can also arrange transportation and tours and book hotels for visitors. A travel agency also requires a No Objection Certificate (NOC) from the Tourism Department.
In order to get your tourism license in the UAE, you need to submit an application to the Department of Tourism and Commerce Marketing (DTMC) along with a business plan, required documents, and fees.
Elements Involved Travel and Tourism License Cost in Dubai
There are multiple elements involved in the cost of getting a tourism license in Dubai. These elements include the type of business structure, size of the company, type of license, business activities, and location.
Business Structure
The business structure of a company really affects the costs, as the mainland tourism companies in Dubai are more expensive than the ones in a free zone.
Size of Company
If you have a small tourism company, then the costs involved will be small as compared to a large-scale business. In order to run a large business, you’ll need a bigger office, equipment, workers, etc.
Type of License
The fee structure of every type of tourism license is different. The fee of a retail license is different from that of a commercial and non-financial license.
Business Activities
The cost of a tourism license is higher if you select more business activities under one license. Also, if you provide specialized services, you’ll need special equipment and workers, which can increase the cost.
Office Location
The cost of an office space is also included in the license application. If you have an office space in a commercial area or a popular travel destination, the office will be expensive and will be unmanageable.
On average, the cost of a tourism license is about AED 14,900, but there are additional charges involved in a tourism license in Dubai, which we will discuss below.
| Description | Costs in AED |
| License & Approval Fee | 12,000 |
| Office Fee | As per requirement |
| Local Agent Fee | 10,000 |
| Investor Visa Fee | 5,000 |
| Employee Visa Fee | 6,500 |
| Immigration and MOHRE registration | 1,500 |
Key Steps to Start a Travel & Tourism Company
Tourism companies need to follow certain processes in order to run their Business in Dubai legally. The necessary steps are given below.
Register Company Name
The first step is choosing an appropriate name for your company. There are certain name policies set by the authorities that need to be followed. Before applying for name registration, you can check for its availability on the Department of Economic Development’s website.
Get Initial Approval
Get initial approval for your company from the DED. Submit an application form with the signatures of all shareholders before submission.
Select a Legal Structure
A legal structure is important while setting up your business in the UAE. There are three common types of legal structures.
- Limited Liability Company
- A sole proprietorship
- A branch office
Choose Business Activities
Selecting appropriate business activities for your tourism business is crucial. Whether you want to have a travel agency, be a tour operator or event manager. Each activity has its demands and regulations.
Select a Jurisdiction
There are two main jurisdictions in UAE that a travel and tourist company can select from, which are discussed below.
Mainland UAE Companies have the benefit of operating all over the United Arab Emirates, with 100% foreign ownership. However, this type of company may have high investment rates.
Free Zone Company Setup is the most favorable for foreign investors who want to start tourism companies in Dubai. Free zones have fast company setup procedures, need fewer restrictions, and require less investment. However, with a free zone company, the investors can not operate outside the free zone.
Register your Company
The next step is to register your travel and tourism company with the Department of Economic Development (if you have a mainland company) and with a free zone authority if you have set up your business in the free zone.
Secure an Office Space
In the UAE mainland, getting an office where you can run your tourism company is crucial. Moreover, the Department will inspect your office space and will need your lease agreement.
Get Tourism License
In order to get a tourism license, you need to submit your application form along with the documents to the Department of Economic Development (DED) and the Department of Tourism and Commerce Marketing (DTMC). After your application is approved, you will get your travel & tourism license in Dubai.
Open a Bank Account
For keeping track of your financial transactions, it is mandatory to have a corporate Bank Account in the UAE. You can select any bank in the United Arab Emirates that provides good customer service.
Visa and Other Requirements
For a mainland company, shareholders and office workers must get a visa in the UAE. On the other hand, a free zone company does not require you to get a visa.
Additionally, keep in mind that you must comply with the regulations set by the authorities. Hiring an expert business consultant can also smoothen the process of setting up a tourism business.
Documents Required for a Travel and Tourism License Cost in Dubai
In order to get your travel & tourism license in the UAE, you’ll need to submit the following documents.
- An application form
- Copies of Shareholders’ and employees passport
- Business Plan
- Trade name registration
- Owner’s work experience certificate
- Owner and manager’s clean criminal record certificate
- NOC from civil aviation authority (required for some activities)
Benefits of Travel & Tourism Company
The tourism market is one of the steady industries in the United Arab Emirates, and many benefits come with starting a travel business.
Thriving Market
The travel and Tourism industry is thriving due to the stable revenue it makes every year.
Supportive Government Policies
The government of the UAE offers supportive policies to the tourism industry, making it a highly profitable business.
Good Repute
Another benefit of having a tourism license in Dubai is that your company will have a good reputation among clients. A legally run business is more trustworthy and recognized.
Business Collaborations
Having a tourism license gives you the opportunity to collaborate business with other companies, hence increasing your connections and making contacts in the industry.
Key Points for Travel and Tourism License Cost in Dubai
There are important rules and regulations that must be kept in mind;
- Mainland companies do not require additional approvals, which is why their license is called instance license. These companies can also apply for investor visas. This license is issued within 24 hours.
- A travel agency does not require a visa, but if you want to get a partner or investor visa, you can apply for one.
- A partner and investor visa holder can apply for a family residence visa in the UAE.
- According to new UAE regulations, the restriction on security deposit of AED 3,00,000 has been lifted, making it easy for the initial investment stage.
- The government has also removed the requirement of 300 square feet for office space for tourism companies in Dubai.
- While selecting business activities, keep in mind the tourism area that you want to focus on, whether family tours, business tours, or adventurous tours.
It is also necessary to keep track of new travel & tourism license regulations set by the Department of Economy and Tourism (DET) or get the help of an experienced business consultant.
Wind Up!
In this article, we have covered every aspect involved in travel and tourism license cost in Dubai. The main elements are the type of license, business structure, size of the company, office location, business activities, and other additional visa charges.
The key here is to get in touch with the regulatory authorities to be updated about the laws and the documents required. If you still need clarification and find the procedure complicated, get in touch with our team at Al-Riyady.
Our expert team is here to help you streamline this process and provide the latest information regarding the tourism license regulations. We also provide Accounting Services, Auditing Services, Tax Consultancy, Business Liquidation, business valuation, and much more.
