How to Start Travel Agency Business in UAE

The UAE stands as an immensely captivating destination, drawing in throngs of tourists annually. With the visitor count surging and on track to meet the ambitious Tourism Vision 2020 goal of 20 million visitors to Dubai alone, the opportune moment has arrived to establish a travel agency in the UAE. Projections indicate that by 2027, the tourism sector will contribute AED 116 billion to the economy, constituting 5.4% of UAE GDP and bolstering more than 750,000 jobs directly or indirectly.

Given the intricately regulated nature of the sector, navigating the process of setting up a travel agency in Dubai can be bewildering. However, our expert guidance offers a remedy to circumvent the complexities, preventing potential financial and logistical challenges down the road.

Steps to Start Travel Agency Business in UAE

1. Initiate Your Travel Business Activity

Initiate by clearly defining the focus of your business activity. Will you specialize as a travel agency, an inbound tour operator, or an outbound operator? The options span a diverse range across various markets.

2. Select an Appropriate Company Name

Before finalizing a name, it's crucial to acquaint yourself with the regulations.Although terms such as 'global,' 'international,' 'East,' or 'West' are acceptable, it's important to note that there could be extra fees associated with their usage. Certain restrictions come into play as well. Offensive terms and references to deities in English or Arabic are strictly prohibited.

3. Apply for a Business License

In Dubai, the responsibility for issuing trade or business licenses (commercial, professional, industrial, and tourism) rests within the purview of the Department of Economic Development (DED). All businesses, irrespective of their sector, must possess a trade license. Typically, the application necessitates submission of your memorandum of association (depending on your business's legal structure), certificate of incorporation, and passport copies of shareholders.

Certain sectors entail supplementary licenses from pertinent authorities. Within the domain of tourism, the relevant authority is the Department of Tourism and Commerce Marketing (DTCM).

4. Apply for Your Tourism License

Following this, the next step involves submitting an application to the DTCM for one of the three supplementary licenses: outbound operator, inbound operator, or travel agent. This necessitates providing an outline of your business plan, a clear criminal record certificate, and a 'No Objection Certificate' (NOC) from the Civil Aviation Authority (if your operations involve the sale of airline tickets). It's essential to note that this license requires annual renewal, with the process commencing 30 days prior to its expiration.

5. Facilitate Employee Visas

It's imperative to submit the application promptly, ideally within 30 days of the employee's arrival. This prompt action will lead to the issuance of a tourist visa.Registering on the Ministry of Interior's e-channels portal for a staff entry permit is the subsequent step. After obtaining the entry permit, employees can proceed to carry out an 'in-country status change,' a pivotal step toward securing a complete employment visa. This process entails providing essential documents such as your trade license, passport copies, and an establishment card. The establishment card facilitates the registration of your company with the General Directorate of Residency and Foreigners Affairs (GDRFA).registration with the General Directorate of Residency and Foreigners Affairs (GDRFA). Additionally, securing 'OK to Board' approval for inbound travel of employees from the South Asian subcontinent falls within your purview.

6. Establish a Corporate Bank Account

While obtaining a trade license is imperative for a bank's recognition of your business, exercise discretion in your selection. A misinformed choice can detrimentally impact your travel agency business. The majority of institutions impose a consistent minimum balance, which spans from AED 1 million to AED 5,000. Additionally, specific banks might necessitate evidence of residency status for at least one shareholder, while others may not mandate such documentation.

Documents Required For Opening a Travel Agency Business in UAE For initiating a travel agency in the UAE, imperative documentation encompasses:

• Passport and visa copies of the owner
• Business plan and trade name reservation
• Lease agreement for the designated office space
• No Objection Certificate (NOC) from the landlord
• Bank reference letter

Furthermore, the process mandates a duplicate of the manager's passport, Curriculum Vitae (CV), and a power of attorney if applicable. Completing the license application form and providing proof of license payment are essential components for ensuring a smooth and efficient business setup procedure.

Which travel license should you choose?The proprietor must make a judicious selection among four distinct travel licenses to initiate their travel agency. These encompass the travel company license, travel agency license, inbound travel operator license, and outbound travel operator license. A deposit of 10,000 Dirhams is mandated for the chosen travel license, submitted to the Department of Tourism and Commerce Marketing. Simultaneously, securing approval for the agency's name involves payment of the initial approval fee. Additionally, procuring an insurance policy, furnishing the agency's physical address, and presenting the lease contract to the travel agency office complete the requisite steps.

Benefits Of Starting a Travel Agency in UAE

1. The Tourism Industry's Substantial Contribution to UAE GDP

Tourism constitutes a significant pillar of the UAE's economy, accounting for nearly 10% of its GDP. The UAE government places notable emphasis on the growth and development of the tourism sector, with an annual expansion rate of approximately 3%.

2. Welcoming Visitors from Across the Globe

The UAE boasts flexible visa regulations, leading to a consistent rise in the influx of visitors from over two hundred nations. The welcoming visa policies have contributed to the continuous upsurge in visitor numbers.

3. Simplified Entry for GCC Nations and On-Arrival Arrangements

The adoption of no-visa or on-arrival visa policies by various countries has substantially propelled tourism revenues. The UAE government has also introduced adaptable visa policies, echoing this trend. Developed countries, including several GCC nations, offer e-gate and visa-free facilities, which have further driven the increase in daily visitors to the UAE. Multiple countries provide on-arrival visa options and multi-entry visa choices.

4. Architectural Marvels and Landmarks

With a vision to ascend as a premier global tourist destination, the UAE has constructed iconic structures and impressive artificial islands such as Palm Deira, Palm Jumeirah, Palm Jebel Ali, and the forthcoming Dubai World. These ambitious projects, along with landmarks like Atlantis, Burj Al Arab, and the towering Burj Khalifa, renowned as the world's tallest structure, have garnered international attention and beckoned tourists worldwide.

5. Indulging in Tax-Free Luxury and Lifestyle

The UAE's tax-free status offers a unique appeal, allowing tourists to bask in Dubai's opulent lifestyle and unparalleled hospitality without shouldering tax burdens. The city of Dubai stands as a hub of luxury accommodations, clubs, yachts, and golf resorts, inviting visitors to experience the pinnacle of extravagance.