Every year Dubai welcomes millions of tourists because of the lavish lifestyle, impressive skyline and alot of fun activities to do. The flourishing industry of tourism marks the profitable business benefits for opening a travel agency in Dubai.
Travel & Tours Agency in Dubai – Why Open a Travel Agency in Dubai?
There is no denying that now is a great time to start a travel agency in Dubai. Tourism is heavily backed by the UAE government, which is responsible for approximately 10% of the national GDP. Also Dubai allows you a tax free zone, where you can keep most of your profit.
Here are a few of the leading reasons to set-up your travel agency in Dubai:
- Expanding Market: More than 200 countries send tourists to Dubai, making a huge and diversifiable consumer base.
- Favorable Business Climate: Foreigners now have 100% ownership of their businesses
- Developed Infrastructure — As the infrastructure is advanced in Dubai, travel agencies can provide hassle-free services.
- No Taxes: Dubai is a tax-free land, meaning you would earn the most out of your profit.
Key Steps to open a travel agency in Dubai
Step 1: Choose The Type Of Travel Agency You Want To Start
A number of options exist, including the following:
- Inbound tourism: Provides tours, sightseeing, and experiences for tourists visiting Dubai.
- Outbound Tourism: Arranging trips for residents of UAE traveling abroad
- Ticketing Services – Offering ticketing and other booking services for airlines, hotels, etc.
Once you select a focus, it becomes easier to figure out which tourism license you need in Dubai, and you can develop a clear business plan.
Step 2: Select Your Type of Business
The structure you choose dictates how you will register your business in Dubai and what registration you will need to comply with. You can choose from:
- Sole-Proprietorship: Suitable for small independent agencies
- Limited Liability Company (LLC): Perfect if you want to grow and take on team members. This provides some valuable liability protection as your business expands.
- Branch Office: For those who own a travel agency overseas, they may have a branch established in Dubai.
Step 3: Choosing a Location – Mainland vs Freezone?
That is you can open your travel agency either in mainland or in Free zone in Dubai. Both have unique advantages:
Mainland: If your agency wishes to reach a wider audience across the UAE, a mainland business setup enables your business to function across the emirates.
Free Zone: Free zone provides 100% foreign ownership and tax exemptions. But mainland firms are forbidden by their law ever to work in mainland without a local distributor, so free zone would just be out of business.
If you are looking to provide services to clients within the UAE or only the clients of a specific free zone, then this would be your differentiating factor.
Step 4: Register a Business Name
For your chosen name, certain conditions need to be met for it to be approved by the government of Dubai; it must be unique, follow the naming conventions of the region and give out some information about what you offer. Having made your decision, you should go file the name at the Department of Economic Development (DED) in Dubai.
Step 5: Obtain a Tourist License in Dubai
To start and run your travel agency business in Dubai, you require a tourism license from the DED. This license permits you to sell services like ticketing services, tourism services and travel services. The application entails items that have to be produced, fees to be paid and measures that the applicant has to take as per the regulations of DED.
Travel Agency License Cost in Dubai
The Travel Agency License Cost in Dubai varies depending on your agency’s size and services. Here’s a general cost breakdown to help you budget:
Fee Type | Amount (AED) |
Initial Approval | 120 |
Trade Name Reservation | 620 |
Tasheel Fees | 345 |
Local Service Agent | 7000 |
DED License Fee | 15,000 |
Tourism Authority Approval | 10,000 |
Dubai Civil Aviation Approval | 6800 |
Company Immigration Card | 750 |
Total | 34,945 |
NOTE: These costs are an estimate; actual fees may vary based on your business size and chosen jurisdiction.
Documentation Required to Open a Travel Agency in Dubai
Setting up a travel agency in Dubai requires following crucial documents. Make sure you have the following:
- Copy of Passport of all investors and managers
- Copy of Visa (resident or visit) of foreign owners
- Competition for the reservation of the trade name
- Copy of Office lease agreement, to prove that your business is sitting on a physical location
- Copy of attested degree certificate of the agency’s manager
- Indemnity insurance policy
- Travel agent contracts with airlines or tour operators, if necessary
Advantages of Opening a Travel Agency in Dubai
- High Tourist Traffic: Millions of visitors visit Dubai every year, ensuring a steady demand for travel services.
- Strategic Location: Dubai offers agencies an easy entry point to Europe, Asia, and Africa.
- High Infrastructure: The infrastructure is at par with the rest of the world and assists in tourism, hence making the operation of travel agencies convenient, and easily connect to the clients.
- Different Culture and Clients: The number of tourists from over 200 countries makes it a high diverse client base.
- Advantageous Legal Environment: Recent changes to allow 100% ownership have provided more control for foreign investors and will encourage new businesses.
Long story short, opening a travel agency in Dubai is a very rewarding business opportunity but the whole process can be tiresome.
The process of opening a travel agency, involving choice of license and registration process, can become easy with our expert support. The Team DXB-VIP will walk you step by step through the paperwork and licensing to ensure the full compliance of your company with the legal requirements set forth in the UAE. So, what are you waiting for?
Frequently Asked Questions
How do I get a travel agency license in Dubai?
With help our DXB experts, you will apply through DED, submit all relevant documents, and pay for all applicable fees.
How much does it cost to open a travel agency in Dubai?
Can a foreigner fully own a travel agency?
How to establish a travel agency in Dubai?
Is travel agency a good business in Dubai?
Yes, considering the tourism traffic in Dubai every year, starting a travel agency is one of the profitable businesses to go for in Dubai, UAE.