Author: Andreea Andron
Published: March 12, 2024
The tour and travel industry in the UAE has witnessed a significant rise in luxury and experiential travel. The market is estimated to generate revenue of US$1,447 million in 2024 and to grow at a rate of 2.99% per year between 2024 and 2028, resulting in a projected market volume of US$1,628 million.
The UAE has emerged as one of the top ten tourism destinations in the world, thanks to its modern infrastructure, world-class hotels and restaurants, shopping destination, and safe and inviting atmosphere for visitors.
Due to the government's ongoing support, it has also significantly propelled cultural and entertainment activities in the UAE, giving rise to world-class exhibitions and live events that cater not only to local residents but also to tourists who are interested in these types of activities.
If your goal is to provide services to both local and international clients, you have unconstrained possibilities for capitalizing on this growing industry.
If you are considering setting up a tour and travel business in the UAE, you should opt for an instant business license from SPC Free Zone, which allows you to choose from multiple business activities under a single license.
This is a business activity that encompasses the expertise of professionals that have a deep insight into the UAE tourism and recreation market. They have the ability to identify tourist preferences, consumer behavior, spending habits, and other economic factors.
These consultants provide support in:
In addition, these consultants establish strong partnerships with relevant government bodies in order to promote the local culture and attractions that correspond with the desires and requirements of local communities.
They help clients deal with complicated legal and environmental duties to reduce risks and ensure long-term success because they have a deep knowledge of sustainable practices and adhere to regulatory standards. In general, tourism and recreation consultants have a significant impact on nurturing collaboration, driving innovation, and promoting responsible tourism practices that are mutually beneficial to visitors and the local community in the UAE.
Tourism and recreational consultants are able to guide businesses in their organizational structure by outlining strategies that can include:
This category does not include activities such as:
| Requirement | Status |
|---|---|
| Third-party Approval | Prior approval required from Tourism Department (TD) |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
Within this category are the activities of businesses that are primarily engaged in selling travel, tour, transportation, and accommodation services to the general public as well as corporate customers. The process of planning and putting together tours for sale through travel agencies or by agents like tour operators themselves also falls under this umbrella.
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category facilitates organizing travel plans for both individual and business clients, a prominent component of travel agency activities.
Travel agencies:
| Requirement | Status |
|---|---|
| Third-party Approval | Prior approval required from Tourism Department (TD) |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category primarily focuses on the activities of agencies that sell a variety of travel-related services to both the general public and commercial clientele. The activities under this category encompass a diverse range of customized solutions that make it easy for customers to schedule flights, tours, transportation, and hotels, resulting in more enjoyable travel experiences.
| Requirement | Status |
|---|---|
| Third-party Approval | Prior approval required from Tourism Department (TD) |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category of business covers tour operator activities. Organizing tours is what this activity entails. The majority of tour operators either market their tours directly or associate with travel agencies.
A well-planned tour will typically cover:
For individual, group, and corporate clientele, tour operators prepare detailed itineraries that cater to a broad variety of interests. Whether exploring local gems or embarking on international adventures, tour operators play a pivotal role in orchestrating memorable and immersive travel experiences for their clients.
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
Tours sold through travel agencies or directly by tour operators require careful preparation and coordination to offer memorable experiences. The itineraries are carefully planned and usually involve:
Whether it's a leisurely retreat, an adventure-focused trip, or a cultural immersion, tours focus on providing tourists with exceptional experiences by working with local suppliers, planning logistics, and making sure everything operates efficiently.
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
The business covering the activity of an inbound tour operator ensures that tours can be arranged for local and international clients to promote the UAE.
Usually, these tours include:
These tours are conducted for leisure travelers and corporate clients.
Inbound tour operators curate and sell tour packages by leveraging their local expertise and, if necessary, procuring permits to organize specific activities for clients or business travelers.
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category covers outbound tour operators that specialize in creating customized travel experiences for discerning clients in the UAE who are keen to see places outside of the country's borders.
These tour operators:
These carefully planned trips include a variety of services, such as:
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category covers the activity of organizing educational and recreational excursions that usually include local and international tours for students. These tours are meticulously organized and put together, which can be booked either through travel agencies or directly from tour operators.
The tours transcend conventional tourism:
These tours provide a comprehensive package that can include:
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category covers activities that involve a range of offerings intended to make travel and leisure experiences more convenient for individuals and groups.
This category includes:
This category does not include:
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category covers the provision of other travel-related reservation services that comprise a wide array of services designed to streamline and improve the travel experience for both individuals and organizations.
This activity involves reservations for:
This category does not include:
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category covers the provision of visitor assistance services, which is a critical component of the travel business. This activity ensures that visitors have the necessary information and support throughout their travel.
This includes:
Businesses operating with this activity provide knowledgeable assistance to tourists, allowing them to confidently navigate through the local environment, develop a greater understanding and admiration for the destinations they explore.
This category does not include:
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category primarily involves tourism promotion activities, which are an essential component of destination marketing strategies. The objective is to implement marketing efforts that stimulate a positive image of local attractions and entice visitors via well-planned marketing campaigns and promotional initiatives.
A variety of promotional strategies are employed, encompassing:
The objective is to present prospective travelers with personalized information about distinctive landmarks, cultural attractions, and world-class leisure prospects. The aim of conducting tourism promotions is to rouse interest and motivation to visit and investigate.
Promotional activities for tourism are crucial as they can create demand, generate interest, and ultimately propel economic development via increased traveler spending and investment by emphasizing the unique qualities and allure of a particular destination.
This category does not include:
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
This category of business covers activities for event organizing. This can include operating facilities and providing services based on cultural and entertainment initiatives appealing to customers.
Conducting this type of business encapsulates:
Given the rapid rise of this type of business, it is also seen as a tourism promotion for customers to flock to the UAE. The growing popularity of this type of activity has significantly contributed to the infrastructure of event organizing in the UAE, especially on a global scale.
The activities that are usually classified in this business include:
This category does not include activities such as:
| Requirement | Status |
|---|---|
| Third-party Approval | No third-party approval required |
| Filing of Economic Substance Return | Exempt |
| Anti-Money Laundering Compliance | Exempt |
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