Things to Know Before Starting Hotel Business in Dubai

Posted by sandeepw on February 3rd, 2020

It hardly needs to be mentioned that over the last few decades, Dubai has emerged to be a hotspot for business tourism as well as leisure travels. What’s more, it is the most lucrative destination in the UAE, thanks to its abundant resources, conducive business scenario, and a stable political structure. In fact, the government offers several incentives for startups, which explains its popularity amongst investors for a business setup. The hotel business is one of the most profitable businesses in Dubai, more so since innumerable people visit Dubai every year, with their friends and families. In fact, according to reports of 2017, the hotel business of Dubai witnessed a supply growth of 5.6% in the hospitality sector. Contrary to popular opinion, you will also find a considerable number of affordable hotels in Dubai. If you are keen to start a hotel business in Dubai, the following are some of the key things you should know:

a. Hotel regulations: prior to the establishment of your business, you need to follow the regulations outlined by the Department of Tourism and Commerce Marketing (DTCM). Some of these include, procuring a bank guarantee from the investors/owners of the company before the issue of a tourism license, provision of an effective program to store a guest’s data securely, correct display of all packages and prices, etc.

b. Legal requirements: you need to cater to a few judicial requirements that are more or less the same, irrespective of the type of business. But as far as hotel business in particular is concerned, you need to have a tourism license while most other businesses require a trade license. Before taking the plunge, you need to pay attention to these minute details and not be driven by the usual procedure.

c. Appoint a manager: any business needs a manager who will take charge of all the necessities. Needless to say, even the low-range, affordable hotels in Dubai should have a manager with relevant qualifications and approved certification. It is crucial to appoint a manager in the initial stages, so that he/she can be of help when it comes to obtaining the approvals and gathering all the documents.

d. Initial approval: once you have appointed a manager, you should get the initial approval from the concerned department. This involves several steps, such as an application form from the Department of Economic Development (DED), passport copy and IDs of the applicant/owner/investor, classification card for the hotel business, approval from the Dubai General Police Headquarters, and so on.

e. Get the license: we have already mentioned that to start a hotel business in Dubai, you need to get a tourism license. In order to get an approval from the authorities, you need to submit several documents, some of them being fee receipt of the initial approval, Trade name certification and related payment receipts, at least 3 months of tenancy contract approved by the landlord, Ejari certification for the hotel property, and some others.

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