How to Open a Tourism Company in Dubai?

Which place comes to your mind when you think of holiday destinations? Apart from all the fancy western countries, Dubai is also counted among one of the most wanted tourist spots in the world. And why not? There are these perfect serene beaches, peaceful resorts, wonderful modern buildings, historic architecture, and a stable promising environment. Additionally, the government of UAE never leaves any stone unturned to develop the travel and tourism sector. Therefore, this could be your best chance to get a tour operator license Dubai and start a travel agency.

Reasons for obtaining a tour operator license Dubai

Dubai is currently racing to be the world’s number 1 destination for tourism. Besides, the tourism sector in Dubai is already at its peak, contributing about 10% of the UAE’s GDP, which is again an appealing factor for customers. Thus, opening a travel agency in Dubai and securing a tour operator license can not only boost your revenue but also deliver you with several benefits.

• Supporting the UAE economy

• No restrictions on any nationalities

• Iconic landmarks and holiday destinations

• Luxury without tax

Types of tourism license in Dubai

There are basically three types of tourism licenses in Dubai one can pursue –

Travel agency license

Activity Code: 630402

License Type: Tourism license in Dubai

Activity Description: This license enables tour operators to sell air tickets to individuals as well as companies. However, their role is limited to booking seats and issuing tickets as per the commands of the clients. They can also assist the clients in booking accommodation or renting a car.

Inbound tourism license

Activity Code: 630412

License Type: Tourism license in Dubai

Activity Description: This travel license facilitates travel agencies to organize local motivational tours and trips related to conferences and events. They also take care of visas, transport, and residence facilities.

Outbound tourism license

Activity Code: 630411

License Type: Tourism license in Dubai

Activity Description: Through this license, tour operators can arrange and sell travel packages abroad through agents.

Activities involved in a tour operator license Dubai

A tour operator license Dubai includes the following activities that the holder can undertake in their travel agency –

• Selling tourism packages, both online and offline

• Issuing travel insurance

• Providing accommodation facilities and other stay options to the clients

• Offering travel tickets – Bus, train, flights

• Providing vehicles such as cars on rent

• Selling adventure tour packages

• Providing support services for visa

You may also visit: How to Open LLC Company in Dubai?

Documents required for a tour operator license Dubai

You might need to present the following documents to acquire a tourism license in Dubai –

• Application form for tourism license

• Passport copies of the investors

• Residence visa/visit visa of the investors

• The lease agreement of the office

• Qualification certificates of the manager

• Indemnity Insurance Policy

• Contract of appointment as a travel agent

• Business plan highlighting the economical & technical feasibility of the project

• No Objection Letter from the Civil Aviation Authority

• Good standing certificate from the Police

Steps to open a travel agency and acquire a tour operator license Dubai

Below are the steps you need to follow in order to start a travel agency in Dubai, UAE –

1. Determine the type of travel agency you want to start
2. Choose a company name
3. Apply for a tourism license
4. Rent an office space
5. Register the license in the immigration department and labor department
6. Apply for employee visas
7. Set up a business bank account

Conditions to keep in mind while applying for a tour operator license Dubai

You need to think through certain conditions while applying for a tour operator license –

• Prepare the required setup funds. Find a suitable bank or financial institution in case you are thinking to get a loan.

• It is important to be well informed about the local government policies and commercial laws on the travel and tourism business, before starting a travel agency in Dubai.

• While preparing your business plan, ensure to outline the factors such as Dubai's economic situation, manpower, setup costs, etc.

• Mention the tourism area that you are planning to focus on. For example, you are planning to give away adventure tour packages, corporate trips, or family vacation packages.

• While setting up a travel agency in Dubai, it has to be an LLC where 51% of the total shares are owned by a Local Sponsor and the remaining 49% by the foreign owner.

• Make sure to cover all the activities in order to avoid any unanticipated risks.

• The appointed manager of the travel agency should have at least 3 years of experience in managing a travel/tourism/hospitality business.

• As you receive the tourism license, make sure to register it with the Dubai Chamber of Commerce to get a Dubai Chamber Certificate. This certificate further helps in registering your travel agency with various government departments as well as business expansion to other emirates.

• Building a network in the tourism market helps in growing the tourism business.

• Be well aware and up-to-date about the trends in the travel industry such as airline bookings, cruise tickets, hotel bookings, etc. There might also be an occurrence of additional requirements by guests for utilities like food, medical, transportation, visa, etc.

• Build a good online presence that can attract potential clients. Create a website where clients can easily communicate with your agency and get details about your services. You can also use social media platforms to promote your company and the travel facilities provided by your agency.

How to enhance the profit of your Travel company in Dubai?

As you get your travel agency rolling in Dubai, you need to put in a lot more to multiply your profits. All you need to do is focus on a few core areas and transform strategies. For instance,

• Upsell your services

Who doesn’t love freebies and add-on services? As a travel company, you can offer attractive additional services to customers while they make a booking with your agency. For example, a lunch/dinner deal while visiting a particular destination. These strategies thus help in increasing sales along with creating a good image of the company in the market.

• Focus on existing and past customers

While businesses tend to focus on adding new customers, they fail to pay attention to the existing ones. Therefore, businesses should create strategies to correspondingly satisfy and stay in touch with both existing and past customers, and also keep finding new ones. it is to be believed that satisfied customers bring in referrals which is again profitable for the business.

• Develop a travel application

A travel application or an online portal is an essential element of a travel company. This ensures your online presence and helps gain visibility and access across a wide database of customers. And ever since digitalization, customers prefer making bookings via travel apps or portals for a convenient booking experience. Therefore, developing a travel app or hiring an app development company can double up your revenue.

• Social media visibility

If you want to attract more and more customers, then it is better to leverage the power of social media to post content about your company and services on various social media platforms. You can also advertise through campaigns or design an effective strategy that would garner the attention of the general public, such as holiday deals and packages. Besides, having a strong social media presence helps in promoting the brand more effectively and boosting the revenue multiple times.

Want to start a travel company in Dubai, but don’t know where to get started? Shuraa Business Setup is here to help you. Shuraa has helped businesses from across the world establish all over the UAE. So, if you too want any further assistance or guidance in forming your travel company and obtaining a tour operator license Dubai, then call +971 4 4081900 and speak to Shuraa experts for FREE! You can also log on to their website www.shuraa.com.