Contribution of Foreign Investors to the UAE’s Tourism and Hospitality IndustryKWSME
The United Arab Emirates have become an extraordinarily, profitable business doorway for global business owners, budding entrepreneurs and investors. The country has been a haven to millions of expats ranging from over 200 nationalities. The unique multi-cultural atmosphere that mixes various ideas has significantly contributed to boosting the GDP of the nation. The vital contribution by the foreign expat to the UAE’s tourism and hospitality division has scaled up the GDP of the country.
The means of starting a business in the UAE has been made much more manageable and simpler so that the foreign inhabitants ascertain it is an easy task to incorporate their business setup in Dubai. Here we will highlight the profound impact that the foreign expats have on the tourism and hospitality division in the UAE.
Tourism Business Industry in the UAE
One of the most profitable business divisions, the tourism business serves to be a vital driver in exceeding the UAEs growth. Dubai, the heart of the UAE, has been rising as one of the top tourist hot spots, pulling the global audience from all the corners. According to the forecasted figures declared in a recent report, the first-half of 2019 drew 8 million visitors, which is a huge number Foreign Business owners and investors perceives the tourism sector to be a feasible choice when it comes to investing in the UAE.
How Can a Foreigner Start a Tourism Business in the UAE?
To start a tourism business in the UAE, a foreign expat, i.e., the investor must go through the following steps:
- Select the business entity type
- Choose a respective trade name
- Narrow down the relevant business activities you wish to do in this case it is something related to the tourism or hospitality sector
- Decide a base of operations ( Dubai Mainland, Free Zone, Offshore)
- Complete the facilities associated with trade name
- Proceed ahead with the procedures related to the attainment of tourism license in Dubai
- Get approval and permissions from the corresponding authorities
- Submit the requested fee
Hospitality Business Industry in the UAE
Along with the extension of the tourism industry, there has been a parallel growth in the hospitality division in the UAE. This particular sector has experienced a massive increase in the preceding decade, where Dubai is one of the topmost targeted tourist destinations. The hospitality segment is anticipated to mark a set added level in the next decade, as the country prepares for Expo 2020, which is going to draw more than 25 million global visitors. The foreign investors have understood the whole scenario, and are intent towards making tremendous investments, as the sector can bring in higher returns on the investments tendered. Some of the future projections involve the following:
- The CAGR of UAE between 2017-2022 is anticipated to be 9%
- By 2022, the hospitality market is predicted to hit $7.7 Billion
- Hotel supply is to increase by about 6.5%, providing 183,718 rooms
- Ras-Al-Khaimah intends to draw about 3 Million visitors by 2025
Now, you must be questioning the core reasons that inspire business investors to come forward and invest in Dubai. Well, few of them are:
- The extensive increase in global and medical tourism
- A multicultural environment
- The strategic location of the country
- High level of safety and security
- A Global Ground for numerous malls, events, festivals
- Government containing visionary leadership
The features mentioned above are among the core standards that a business investor looks for before investing in any country.
How Can a Foreigner Start a Hospitality Business in the UAE?
A foreign ex-pat must proceed ahead with the following guidelines in their mind when it comes to the business setup process of the hospitality business in the UAE.
- Obtain and duly fill an application from the Department of Economic Development
- Submit the passport and visa copies of the corresponding applicants
- Submit a blueprint of the business plan
- Submit a No Objection Certificate (NOC) in case of an international group or branded hotels
- Submit a tenancy contract signed by the landlord
- Classification card in case of the hotel business
- Approval from the Department of Tourism and Commerce Marketing (DTCM)
- Support from the Dubai General Police headquarters
- Other endorsements and approvals from the Dubai Municipality
Perks of Starting a Business in the UAE
Once you have decided to set up your business in the UAE, you will be attaining the following advantages:
- Total repatriation of the capital invested and profits earned
- Complete exemption from personal income tax payment
- The easy availability of a business license
- The flexibility of easy business incorporation process
- An international doorway to enter the foreign market
- Availability of different location alternatives
- UAE is one of the most encouraging business investment ground that provides high returns
- Tourism and Hospitality serves to be the most suitable business divisions to invest in Dubai
- The upcoming Expo 2020 is presumed to be a game-changer for business communities world over
- Getting a specific business license is a must
- Opting for professional business setup consultant would deliver better results as they know what they are doing
It is visible that the business setup procedures in the region of Dubai involve complicated documentation processes. Dealing all alone with each of the methods engaged in company formation can turn out to be tedious and difficult. One of the best moves that the business owners can make is to move ahead with the guidance of business setup consultants experts, which encourages them to clear the entire process in a carefree and hassle-free way.
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