Tourism Business Opportunities in the UAE

The United Arab Emirates (UAE) has transformed miraculously from an abstemious government to a business and tourism destination in the wake of the world. With its well-developed infrastructure, cosmopolitan society, and investor-friendly laws, the UAE is considered one of the most desirable destinations for businessmen to conduct business these days.

Amongst its more developed areas of activity, the challenge of diversification is travel and tourism. Dubai and Abu Dhabi are especially to be held accountable to a great extent for creating first-world infrastructure, which is attracting millions of tourists every year. Whether luxury tourists, sports tourists, or culture tourists, the UAE has every type of them.

Overview of UAE Tourism

Contribution to GDP: Tourism is adding around 12% of UAE’s GDP.
Visitor Arrivals: More than 17 million international tourists came to Dubai, the world’s most competitive city, in 2023.
Global Competitiveness Rankings: The UAE is one of the world’s top 10 competitive tourist cities (World Economic Forum).
Diversity of Participation in Tourism:
Luxury Tourism – yacht cruises, 7-star hotels, luxury fashion malls.
Adventure Travel – desert safari, water sports, sky diving, dune bashing.
Cultural Tourism – heritage villages, Sheikh Zayed Mosque, Louvre Abu Dhabi.
Medical Tourism – state-of-the-art medical centers to treat patients from the entire Asian & African continent.
Business & MICE Tourism – Dubai Expo, GITEX, ADIPEC, World Trade Centre events.

Why Tourism is Highly Diversified in the UAE

Strategic Location:

UAE is the bridge of Asia, Africa, and Europe — a world transit point. Emirates and Etihad Airways receive millions of tourists every year. Reclusive location.

Government Support:

Authorities like Dubai’s Department of Economy & Tourism (DET) and Abu Dhabi Department of Culture & Tourism (DCT) heavily promote the sector with incentives.

Year-Round Tourism:

Thanks to indoor attractions (malls, theme parks, aquariums) and winter outdoor festivals, UAE maintains a steady flow of visitors year-round.

Mega Events & Expo Legacy:

Expo 2020’s success provided the platform for Dubai’s global acknowledgment as an event destination, which boosted MICE tourism.

Vision 2031 & Agenda D33:

UAE’s vision to double the proportion of the non-oil sector’s GDP, and tourism forms one of them.

Starting a Tourism Business in the UAE

United Arab Emirates (UAE) has become transformed miraculously from that of a abstemious government to business and tourism destination in the wake of the world. With its strongly well-developed infrastructure, cosmopolitan society, and investor-beneficial law, UAE is considered one of the most desired destinations by businessmen to do business these days.

Amongst its more developed areas of activity, the challenge of diversification is travel and tourism. Dubai and Abu Dhabi are especially to be held accountable to an all-encompassing huge extent for creating first-world infrastructure which is attracting millions of tourists every year. Whether luxury tourists, sports tourists, or culture tourists — UAE has every type of them.

Overview of UAE Tourism

Contribution to GDP: Tourism is adding around 12% of UAE’s GDP.
Visitor Arrivals: More than 17 million international tourists came to Dubai, the world’s most competitive city in 2023.
Global Competitiveness Rankings: UAE is the world’s one of the top 10 competitive tourist cities (World Economic Forum).
Diversity of Participation in Tourism:
Luxury Tourism – yacht cruises, 7-star hotels, luxury fashion malls.
Adventure Travel – desert safari, water sports, sky diving, dune bashing.
Cultural Tourism – heritage villages, Sheikh Zayed Mosque, Louvre Abu Dhabi.
Medical Tourism – state-of-the-art medical centers to treat patients from the entire Asian & African continent.
Business & MICE Tourism – Dubai Expo, GITEX, ADIPEC, World Trade Centre events.

Why Tourism is Highly Diversified in UAE

Strategic Location:

UAE is the bridge of Asia, Africa, and Europe — a world transit point. Emirates and Etihad Airways receive millions of tourists every year. Reclusive location.

Government Support

Authorities like Dubai’s Department of Economy & Tourism (DET) and Abu Dhabi Department of Culture & Tourism (DCT) heavily promote the sector with incentives.

Year-Round Tourism:

Thanks to indoor attractions (malls, theme parks, aquariums) and winter outdoor festivals, UAE maintains a steady flow of visitors year-round.

Mega Events & Expo Legacy:

Expo 2020’s success provided the platform for Dubai’s global acknowledgment as an event destination, which boosted MICE tourism.

Vision 2031 & Agenda D33:

UAE’s vision to double the proportion of the non-oil sector’s GDP, and tourism forms one of them.\

Starting a Tourism Business in UAE

Subject to the nature of the business, you can avail the following:

Mainland Setup

SEALLED by DET (Dubai) or DCT (Abu Dhabi).
Authorized activities as under:
Travel agency
In-bound & out-bound tour operator
Hotel & hospitality management
Rent-a-car business
Event management
Subject to other approvals (RREA, DTCM in Dubai).
High credibility and direct market access.

Free Zone Establishment

Low cost, fast, 100% foreign ownership.
Activities:
Tourism consultancy
Marketing services
Internet travel websites
Event and exhibition organization
Cannot easily transfer licensed travel agency business in Dubai without DET/DTCM approvals.
Can be used for web-based or international tourism business.

Step-by-Step: Starting a Tourism Business in UAE

Select Business Activity (consultancy, travel agency, event management).
Select Jurisdiction (Mainland or Free Zone).
Trade Name Registration with DET or Free Zone authority.
Pre-approval from the concerned authority.
Rent Office / Flexi Desk (in case of availing the benefit of a license).
Buy Tourism License (from DTCM or Free Zone).
Apply for Visas (for yourself, employees, dependents).

Open Corporate Bank Account.

Initial Setup Cost of a Tourism Business
Dubai Mainland Tourism License: AED 15,000 – AED 25,000 depending on activity and approvals.
Free Zone License: AED 12,000 – AED 20,000 (inclusive of flexi-desk).
Other Fees: office rental, RERA/DTCM licenses, visas, and bank guarantee (tour operators).

UAE Tourism for the Future

Dubai 2040 Urban Master Plan: expansion of the tourism and hospitality sector.
Abu Dhabi Vision 2030: Abu Dhabi, a city of world heritage and culture.
Sustainable Tourism: Eco-tourism, eco-friendliness of hotels, and conservation belts.
Smart Tourism: AI growth, VR tours, and a smart booking system.

The UAE is always changing, and therefore, one of the safest and most profitable investments to pursue would be tourism.

Taxtube Can Guide You

Taxtube Consultancy makes it easy to onboard your business in the tourism industry of UAE. Right from the hassle of deciding in license board mode (Free Zone or Mainland), getting approval for buying (RERA, DTCM), to even opening a bank account, we walk you through everything.