This article covers how you can start a travel and tourism business in Dubai.
It is a well-known fact that Dubai and the United Arab Emirates, in general, are hot spots for tourism. There is no doubt that people from all over the world travel to the country because its known for its hospitality, pristine beaches, entertainment facilities, safety, amongst many other factors.
While at the same time, the country hosts an expat population with significant disposable income that allows them to travel extensively within the region and beyond. The travel sector in the UAE has remained resilient despite many upheavals in the economy and is destined for strong, sustainable growth.
What type of travel and tourism business do you want to start?
If you are thinking about starting a travel and tourism business, you will have to start by researching what specific type of business you want to start.
Do you want to set up a website and facilitate online ticket and hotel bookings or do you want to start a more traditional retail travel agency?
Will you be providing services specific to the local market or will you be targeting international markets? Are you going to provide group tours? What type of local and international relationships will you have to have in place before you decide to launch your business?
For most entrepreneurs, the answers to the above questions depend on their own professional experience. It’s very rare to start a travel business with no experience in the sector. If you have several years of working experience in an IATA accredited Travel Agency, then you will be familiar with the modus operandi of how agencies operate and will know the ins and outs of dealing with hotel and airlines. If you are an investor with no experience in the sector, start by speaking to professionals within the sector for the best practices in managing and running an agency.
Depending on the type of business you want to start, there are requirements set by the local authorities that apply. For a travel agency, you must deposit funds with the regulatory body and ensure you have enough insurance cover in the event of liquidity issues. Our consultants can provide you with further details depending on the jurisdiction that you select.
Find your Unique Selling Point
You’ve done your due diligence and are ready to take a dive? It’s important to think about where you are positioned in the market.
Too many businesses have discovered the hard way that being ‘generic’ and having no ‘unique selling point’ are a recipe for disaster. Ask yourself this simple question, what makes you stand out in the marketplace?
You must be able to find your ‘niche’, whether that means targeting a certain segment (such as tailored custom packaged holidays for high net worth individuals), focusing on a growing segment of tourists coming to the UAE (Chinese or Russian nationals who have been recently given visa-free access) or corporate travel customers.
You can become an expert on a subject matter, for example, let’s suppose you want to attract the 18-25 market and you create custom packages to travel across Southeast Asia on a student’s budget. If executed properly, your reputation will spread, and you will be attracting customers without having to spend excessively on marketing.
Without a unique selling point, although not impossible, it makes it much more challenging to compete with established local businesses and international brands that operate from well-recognized websites. You will be stuck in the race for the lowest price and lowest margins. Transactional service creates no long-term loyalty; it becomes all about the price. This is where your unique selling points and great customer service can make all the difference.
Getting the Right Travel Agency License
Most of our clients choose to start their travel and tourism business in Dubai. According to the local business regulator, travel and tourism businesses fall under three distinct categories: Inbound Travel Operator, Outbound Travel Operator, and Travel Agency.
This is where speaking to one of our consultants can assist you in choosing the right business activities for your needs.
To obtain a travel license with one activity (Travel Agency license or Inbound Travel Operator license), you’ll need to deposit 100000 AED with Dubai’s Department of Tourism and Commerce Marketing. For an Outbound Travel Operator license, you are required to deposit 200000 AED. These deposits are a safeguard against default and are in the interest of consumers.
You will need to submit some documents to Dubai’s Department of Tourism and Commerce Marketing which we can help facilitate. Our staff has frequent interaction with this agency and is well versed with what a successful application requires.
Setting up Your Business Premises
Business activities in the travel and tourism sector are required to have physical offices and cannot operate from a virtual office. The minimum requirement is an office the size of 30 square meters. However, we would recommend speaking to one of our consultants who can provide you with the latest information in this regard.
Our consultants work with a number of businesses that can facilitate in helping you get the office that your business needs. Whether you are looking for an office in the heart of downtown Dubai or want to target areas with a high concentration of expats, we have the solution for you. contact us now.
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