Paradise Hospitality: Your Business Partner to Hotels & Resorts Establishment in the UAE – Expert Guidance for Hospitality Business

The UAE is a world center for tourism and hospitality. The tourism industry is a fast-evolving economic industry, ranging from the 7-star hotels of Dubai to the culture-rich guesthouses in Abu Dhabi. Welcoming millions of guests and tourists from around the globe annually, the UAE government remains busy developing infrastructure, attractions, and business-friendly ventures to put the Hospitality Business into full swing.

For the entrepreneur and investor alike, financially savvy but also strategically to invest in a hotel, guest house, or resort business in UAE. Let us now think about why UAE is so much of an awesome market, the alternatives, how to go about it, and the cost.

Why UAE is Great for Hospitality Businesses

• Tourism Hub of the Middle East

Dubai and Abu Dhabi are two of the world’s largest cities, and Dubai alone hosts more than 17 million tourists in 2023. Business and tourism fill hotel and resort bed occupancy.

• Government Initiatives

UAE Vision 2031 and Dubai D33 Agenda will double tourism business GDP contribution to 40 million tourists annually by 2031. It leaves room for new hotel and resort management.

• World-Class Infrastructure

From upscale retail shopping centers to theme parks, cultural landmarks, and world’s busiest airports, UAE offers a globally compliant setup to hospitality ventures.

• Tax advantages

UAE has 0% corporate tax overall, and overseas ownership of Free Zones with profit repatriation in full.

• High occupancy rate

Abu Dhabi hotels and Dubai hotels enjoy average occupancy levels of 70–80% on a year-round basis, way ahead of worldwide standards.

Mainland vs Free Zone Setup

While starting a hospitality company in the UAE, you may have Mainland or Free Zone setup.

Mainland Setup

• Optional for tour operators to set up a hotel, resort, or guest house.
• Dubai Department of Economy & Tourism (DET) or Abu Dhabi Department of Culture & Tourism (DCT) issues them.
• General permits to be issued by the municipality, civil defense, and tourism departments.
• Facilitates direct operation and unrestricted access to the UAE market.

Free Zone Establishment

• Free Zones such as Ras Al Khaimah Tourism Free Zone provide consultancy or management hospitality license services.
• Direct operation of a guest house or hotel is not allowed.
• Suitable for international hospitality management services or marketing, and consultancy enterprising investors.
• Brief: To achieve a genuine guest house or hotel, get a Mainland license.

UAE Hospitality Licenses

• Hotel License – For business hotel, luxury hotel, and boutique hotel.
• Resort License – For big resort with entertainment, recreational, and accommodation.
• Guest House License – For budget accommodation and family backpacker.
• Hotel Apartments License – For serviced apartment long stay.

Step-by-Step Setup Procedure

• Select Business Activity (guest house, resort, hotel).
• Select Location & Property – Should be in tourist zone and municipality law.
• Register Trade Name with DET/DCT.
• Procure Preliminary Clearance from the tourist authority.
• Clear Documents – Copy of passport, lease of premises, floor plans, business plan.
• Obtain Civil Defense Clearance – Fire and safety compliance.
• Tourism & Municipality Inspections – Infra, cleanliness, and amenities for the visitor.
• Final License Issued – Commencement of operations.
• Recruit Staff & Apply for Visas – General manager must be hospitality-trained.
• Open Corporate Bank Account – For smooth financial operation of your Hospitality Business

Setup Cost of a Hospitality Business

• The cost is location, size, and approvals-dependent:
• Hotel License (Dubai Mainland): AED 20,000 – AED 30,000 (excluding property).
• Guest House License: AED 15,000 – AED 25,000.
• Resort License: More based on size and facilities.
• Explanation of Other Fees:
• Buying or leasing property
• Fit-out and interior
• Civil defense, municipality, and DTCM/DCT charges
• Staff employment and visas

UAE Hospitality Growth Potential

• Expo 2020 Legacy & Beyond – Long-term tourist expansion through increased international exposure.
• Luxury & Lifestyle Tourism – Branded resort, hotel, and branded residence requirement.
• Home & Community Tourism – Home and community guests stay at Abu Dhabi and Sharjah guesthouses.
• Eco & Adventure Tourism – Ras Al Khaimah is emerging as an eco-tourism destination with an emphasis on nature conservation.
• Serviced Apartments Demand – Expats’ increase generates long-stay accommodation need.

How Taxtube Can Help

Having a hotel, resort, or guest house operation in UAE involves a number of approvals, licenses, and local connections. Taxtube Consultancy offers you the following:

Most suitable business structure (Mainland or Free Zone) selection. DET/DCT and DTCM approval process.Issuance of documents and submission of all the licenses. Release of property documents and security clearance.Opening of corporate bank account and visa arrangements. Your UAE hotel, resort, or guest house business will be registered easily, at lower costs with us. Get in touch with Taxtube Consultancy today and begin registering your UAE Hospitality Business.