UAE is a global hub. People from all over the globe come here to spend their vacations, earn a living, and even live permanently. In the past years, the UAE has hosted more than 20 Million travelers annually.
Starting a travel agency in the UAE is one of the most in-demand and profitable options available for good business investments. This guide walks you through the process of how to open travel agency in UAE successfully without any complications!
What Does A Travel Agency Do in the UAE?
The first question and the point to ponder is what exactly is it that a travel agency does and how is it profitable? The answer is simple, you help individuals and even companies with their visa and travelling processes while charging them for your services. The UAE accommodates tons of travelers this is a hot business and features permanent in-demand services. An agency normally conducts the following summarized tasks:
- Plans trips
- Books flights and hotels
- Gives travel advice
- Handles visas
- Sells packages
- Manages group travel
- Partners with suppliers
- Provides support in travelling
Types of Travel Agencies in the UAE
| Type | Focus | Clients | Services |
|---|---|---|---|
| Corporate Travel | Business travel | Companies, executives | Flights, hotels, transport, MICE |
| Leisure Travel | Vacation packages | Individuals, families | Tours, hotels, flights, activities |
| Inbound Travel | UAE tourism | Tourists visiting UAE | Local tours, excursions, visas |
| Outbound Travel | International trips | UAE residents | Flights, hotels, itineraries |
| Online Travel (OTA) | Digital bookings | General public | Flights, hotels, packages online |
| Specialized Travel | Niche travel | Specific groups | Hajj/Umrah, adventure, luxury |
Advantages of Starting a Travel Agency in the UAE
The UAE is a global travel hub. Millions of tourists visit each year, so much so that in 2023, the emirate of Dubai individually welcomed 14.36 million international visitors. This makes the prospect of running an agency very attractive.
High Tourism Demand
Tourism serves as one of the primary forces that power the economic development of the UAE. Tourism generated $45 billion for the GDP during the year of 2022. The government of the UAE intends to increase tourism revenue to $122 billion before 2031. This means travel operators can make good profits.
Strong Business Support
The UAE has business-friendly laws. Setting up a company is easy. Entrepreneurs can get a travel operations license in just a few weeks. There are also tax benefits. The UAE has 0% personal income tax, making it attractive for investors.
Growing Population and Expats
Many of the residents of the country are expats, meaning that they need traveling assistance to visit their home countries frequently and regularly. Therefore, the UAE already has a huge number of potential clients that are looking for these services.
High-Spending Tourists
The UAE welcomes high-end tourists. Tourists in Dubai allocated $1,500 on average during their 2022 visits to the city. The spending levels in the Emirates exceed those seen in most other cities across the world. Agencies can offer luxurious packages which include reserved VIP tours together with bookings for five-star hotels and special treatment accommodations.
Digital Growth in Travel
Internet bookings are growing rapidly. UAE’s online travel market should reach $7.5 billion by 2025. Travel operators achieve success through mobile applications combined with internet offers and electronic marketing.
How to Open a Travel Agency?
Starting an agency in the United Arab Emirates involves several steps. Here’s a simple guide:
Step1: Choose Your Business Activity
You have to start with deciding what services you’ll offer. Will you focus on booking flights, organizing tours, or both, etc?
Step 2: Select a Company Name
Pick a name that represents the essence of your business. You have to ensure it doesn’t include offensive language or religious references.
Step 3: Decide on a Legal Structure
Choose between a sole proprietorship or a limited liability company (LLC). Each has different requirements.
Step 4: Gather Necessary Documents
Prepare the set of documents that are required, usually including passport, qualification certificates, clean criminal record certificates, etc.
Step 5: Obtain a Tourism License
Apply for the appropriate license based on your services. Along with that, you have to submit your company name to the Department of Economic Development (DED) and get initial approval.
Step 6: Secure Office Space
You need to rent an office and have the lease agreement attested by the Dubai Land Department. A physical office is mandatory for the tourism license.
Step 7: Open a Corporate Bank Account
In the end, you need to open a business bank account to handle transactions with your trade license.
Documents Required to Open a Travel Agency
Following are the set of documents that you need to keep ready as they may be needed for submission for trade license as well as other approvals:
- Filled application form
- Copies of valid passports for all involved
- Manager’s professional qualification or work experience certificate
- Clean criminal record certificates
- Economic and technical feasibility study of your project
- No objection letter from the Civil Aviation Authority if you plan to sell airline tickets
Cost of Travel Agency License in Dubai
| Fee Types | Amount in AED |
|---|---|
| Initial Approval Fees | 120 |
| Trade Name Reservation Fees | 620 |
| Tasheel Fees for Initial Approval | 345 |
| Tasheel Fees for Local Sponsor Agent | 350 |
| License Issuance Fee | 8,500 – 10,000 |
| Approval from Dubai Tourism Authority Fees | 9,000 – 10,000 |
| Estimate Dubai Civil Aviation Approval Fees | 5,500 – 7,000 |
| Company Immigration Card Fees | 750 |
| Local Service Agent & PRO Services Fees | 5,000 – 7,000 |
| Total Estimated Cost | 25,185 – 35,185 |
Note: The cost varies based on business location, company size, and additional services required. Always check with Dubai authorities or business setup consultants for precise costs.
Frequently Asked Questions (FAQs)
1. What are the benefits of operating in a free zone?
A free zone provides several advantages for those looking to establish a travel agency. It offers tax exemptions, full ownership, and simplified company setup. However, a free zone company may have restrictions on directly serving the local market unless it partners with a mainland firm.
2. Do I need a visa to run a travel and tourism business?
Yes, travel agents must secure a UAE visa to legally manage a Business in Dubai and company formation. If you sponsor employees, you will also need to apply for their inbound travel for employees permits to work in the tourism sector.
3. How much does a business license cost for this sector?
The cost of a travel venture varies based on multiple factors, such as the size of the agency, office location, and whether you operate in the United Arab Emirates mainland or a free zone company. The agency license cost in Dubai generally falls between AED 25,000 and AED 35,000.
4. What type of license do I need for my company setup?
The type of license you need depends on the services you plan to offer. A tour operator permit is needed for organizing tours, while an inbound tourism license is necessary for catering to tourists to Dubai. If you focus on international travel, you may require an outbound tourism permit for business in the UAE.
5. What are the key steps to start a travel company?
If you’re considering opening a travel agency, you must first draft a business plan, register your firm with the Department of Tourism and Commerce, and apply for the required permits. The documents required to open the company include passport copies, a clean criminal record, and proof of office space.
6. How does Dubai tourism support new travel company?
Dubai is an attractive tourist destination that welcomes millions of visitors yearly. With initiatives like the Dubai 2040 Urban Master Plan, the government is investing in the tourism industry to create opportunities for travel operators.
7. Can I operate as a travel operator without a physical office?
No, a physical space is essential for the travel business. The business license from the department requires proof of an office, whether in a free zone or mainland.
8. What are the benefits of obtaining a travel business license in Dubai?
By obtaining a travel operations license, you gain access to Dubai residents, global clients, corporate partnerships, and the travel industry globally. This helps in enabling agencies to offer customized travel packages and travel services.
9. What makes Dubai an ideal location for a tourism company?
Dubai attracts high-end travelers, making it competitive to run a tourism company in Dubai market. With the city being a top travel destination, setting up a business here allows you to cater to luxury tourists and corporate travelers.
10. Can I apply for the tourism license if I’m not an Emirati citizen?
Yes, foreign investors can apply for a business license and fully own a travel agency business in a free zone. However, in the UAE mainland, a local agent may be required for approvals.
