The UAE Hospitality and Tourism Industry: How to Launch Your Venture Successfully
Dubai and the UAE have seen explosive growth in tourism and hospitality. With over 17.15 million overnight visitors in Dubai during 2023 and average hotel occupancy near 76%, demand for travel services is at an all-time high.
The tourism sector contributed about AED 167 billion to the UAE’s GDP in 2023, reflecting massive opportunity for new ventures. Government initiatives like the Dubai Tourism Strategy and infrastructure investments further boost the industry.
In this booming market, clear planning and the right setup are key to success.
Key Licenses and Legal Steps
To launch a hospitality or travel business, you must secure the right licenses. In Dubai, the Department of Economy and Tourism (DET) issues licenses for tourism activities. Main categories include:
Inbound Tourism License: For organizing tours, events or transportation within the UAE.
Outbound Tourism License: For sending UAE residents abroad on tour packages (including visa consulting).
Travel Agency License: For agencies selling flight tickets, hotel bookings, and tour packages (both inbound and outbound).
Each license requires official approvals. You must submit a detailed business plan, reserve a trade name, and gather required documents (shareholders’ passports, NOCs, manager qualifications, viability studies, etc.).
Ejari registration is mandatory – you must have a registered tenancy contract for your office before applying for the trade license.
After initial DET approvals, you formally apply for the tourism or travel agency license and pay the fees. Travel agency licenses also require extra clearance from the UAE Civil Aviation Authority.
Choosing Your Business Setup: Free Zone vs Mainland
An important decision is jurisdiction. In the UAE, you can set up on the mainland (onshore) or in a free zone.
Mainland companies trade freely across the Emirates but often need a local partner. Free-zone companies, by contrast, allow 100% foreign ownership and have faster setup processes.
IFZA Dubai Free Zone: A new Dubai free zone ideal for tourism startups. IFZA offers 100% ownership, full profit repatriation, no personal residency needed during setup, and the ability to combine multiple activities under one license. It fast-tracks company formation and banking.
RAKEZ Free Zone (Ras Al Khaimah): A popular zone for travel agencies and tour operators. RAKEZ allows 100% ownership, tax exemptions, and streamlined licensing for travel-related activities. They assist with office solutions and visa services.
Sharjah Publishing City (SPC) Free Zone: A budget-friendly option. SPC Free Zone provides instant company formation, unlimited visas on one license, and lots of business support services (like a guaranteed bank account and immigration) for hospitality startups. It also allows 100% foreign ownership.
Each free zone specializes in certain activities, so choose one that matches your license type.
For example, IFZA has travel and tourism activities, as does RAKEZ.
Even in a free zone, you still coordinate with DET (Dubai) or the equivalent tourism authorities, and with Civil Aviation for travel agencies.
Launch Checklist for a Hospitality Startup
Successful entrepreneurs follow a clear roadmap. Here’s a practical checklist to guide your launch:
Define your concept & market: Choose a niche (e.g. luxury tours, eco-tourism, boutique hotel) and target customers. Draft a detailed business plan outlining services, pricing and target segments.
Choose license and jurisdiction: Decide between a Tourism License or a Travel Agency License, and select Mainland or a Free Zone (IFZA, RAKEZ, SPC). Free zones offer faster setup and 100% ownership.
Register trade name & entity: Apply for a trade name reservation and legal structure (e.g. Free Zone LLC) with the authorities.
Secure office and Ejari: Get a lease for your office or flexi-desk. Register it on Ejari – this official lease registration is required before any trade license is issued.
Prepare documents: Collect passports, professional certificates, shareholder documents, and any needed NOCs (e.g. from civil aviation for travel agencies).
Apply for approvals and license: Submit all paperwork to DET or your chosen free zone authority. Obtain initial NOC from DET, then formally apply for the business (tourism/travel) license.
Post-license setup: Once licensed, open a UAE corporate bank account and process employee visas. Set up essential infrastructure (booking software, payment systems, website).
Build partnerships: Forge deals with airlines, hotels, tour operators and transport providers for good rates. Strong supplier relationships let you offer attractive packages.
Marketing strategy: Invest in digital marketing — create a user-friendly website, use social media and SEO, and offer promotions to attract clients. Engaging content and visuals will drive awareness.
Compliance and quality: Meet all industry standards (e.g. tour-guide certifications, hygiene rules for hotels). Maintain high service quality to build trust. Note that licenses are typically valid for one year and need renewal (with up-to-date Ejari) to continue operations.
By ticking off each item above, your hospitality venture will be well-prepared. For example, Ejari registration is non-negotiable for business setup, while partner agreements can give you the edge on pricing. Covering these steps ensures you don’t miss any critical requirements as you launch.
Ready to Launch?
The UAE’s tourism boom offers a golden opportunity. Don’t navigate the process alone – contact our business setup experts for a free consultation.
We’ll help you with everything from Ejari services to selecting the ideal free zone (IFZA, RAKEZ, SPC) and obtaining your tourism or travel license.
Take the first step today by reaching out or filling our inquiry form. Your dream hospitality venture in Dubai and the UAE starts here!
Frequently Asked Questions (FAQs)
You need a Tourism or Travel Agency license. Travel services that handle flights or passengers may also require clearance from the Civil Aviation Authority and approvals from the Department of Economy and Tourism in Dubai.
Choose a free zone like [IFZA Freezone], [RAKEZ Freezone], or [SPC Freezone] for 100% foreign ownership and faster setup. Use the mainland if you plan to trade widely across the UAE and can work with a local partner.
Yes, in Dubai you must register your lease with Ejari before the trade licence is issued. See our [Ejari services] for help with lease registration.
