How to Start a Hotel Business in Dubai in 2020?KWS Admin
Tourism and travel are at the top of the list when it comes to Dubai’s diversified commercial sector. It was able to reshape itself into a virtual tourist magnet through fashioning policies that have helped in making Dubai into one of the world’s most famous travel and tourist destinations.
Additionally, its strategic location, state-of-the-art infrastructure, diverse population, and amazing entertainment spots that attract visitors from far and wide have played a huge role in luring several corporate giants and organizations to invest in Dubai’s travel, tourism and hospitality sector.
As per the new reports, with the growing number of magnets interested in opening a hotel in Dubai, the hospitality sector displayed an impressive 5.6% growth in 2019. Hence, it presents multiple investment opportunities for both locals and expats wishing to start a hotel business in Dubai.
Before you jump on the bandwagon,You should go through this blog once where we have gathered all the information on establishing a hotel business setup in Dubai in 2020.
Classification of Hotels in Dubai
Before we dive headfirst into the intricacies of hotel business setup in Dubai, let us first get our basics down.
The hotels in Dubai are classified into various categories and sub-categories.
The categories are as follows:
- Hotel Apartments
- Youth Hostels
- Guest Houses
- Holiday Houses
Furthermore, the hotels in the United Arab Emirates are also awarded stars ranging from 1 to 7, where 1 means mediocrity and 7 means divine indulgence.
While, the holiday houses are simply classified into standard or deluxe.
You should make sure that your hotel falls under one of the above-mentioned categories, if you want to avoid any run-ins with the UAE law.
Read More: Top Trends in Hotel Business in Dubai
Rules and Regulations Followed by Hotels in Dubai
To acquire a license for your hotel business, there are certain rules and regulations set up by the Department of Tourism and Commerce Marketing (DTCM) Dubai that must be followed.
Few of these regulations include
- A bank guarantee is a must, for getting a license.
- 30 square meters is the minimum size of the hotel rooms permissible in Dubai.
- The prices must be clearly and correctly displayed throughout the establishment.
- Provisions must be made to store the guest’s data securely.
- The owner or the manager or both must have a’ Certificate of Good Conduct’.
Advantages of Starting a Hotel in Dubai
Given the rising popularity of tourism in the UAE, launching a hotel business is a sure shot way to double your investment.
Here we are enlisting few benefits of setting up a hotel business in Dubai
1. Global Events
Dubai is the commercial hub of not only the MENA region but it has also overtime evolved into a commercial capital of the world. Besides that, Dubai government has taken several steps which have morphed it into a favored location for global events.
Dubai Expo 2020 is a prime example of this. A global event–that is said to draw 25 million visitors from 45 confirmed participating countries– of such an immense magnitude was unheard of but the UAE government managed to make the unimaginable happen through their visionary planning.
2. Talented and Skilled Workforce
Dubai being a diverse and multicultural city, is filled to the brim with talented and skilled workforce. Any investor or entrepreneur will be able to easily find someone who will be able to fill your required job description perfectly.
3. A Home Away from Home
There are thousands of visitors flying in and out of Dubai daily. It is no surprise that they will require a place to stay in, that not only is affordable but it is also comfortable.
Hotels and motels can therefore be built to target these clients exclusively.
4. Easy Set Up Process
The hotel business set up process in Dubai is fairly simple, hassle-free and straightforward.
Investors can quickly get the job done by adhering to the rules set out by the Department of Economic Development (DED)— which is the primary authority who handles all the formalities regarding the setup process.
Steps to Open a Hotel business in Dubai
Let’s get into the nitty-gritty of it. Here are the factors and requirements that you must fulfill before you invest in a hotel business in Dubai:
Check the Term of Requirements
Dubai has a specific set of legal and judicial requirements that are more or less the same for all businesses. However, unlike other businesses in Dubai where you must obtain a Trade License, a hotel business needs to acquire a Tourism License.
Apart from this slight variance in the term of requirements the rest of the incorporation process is the same as any other business in the UAE.
Appoint a Manager
Obviously, in order to establish a hotel business in Dubai, you need to appoint a manager. The manager should have the relevant qualifications and approved certifications through which he/she can hold the position.
The manager should be capable and must be a master of their craft as they will play a key role in ascertaining the requirements of the hotel industry. Moreover, a good hotel manager will provide assistance to the owner in getting the initial approval and licensing for the hotel business in Dubai.
Get the Initial Approval
The initial approval must be taken from the Department of Economic Development (DED).To acquire this approval for your hotel business in Dubai, you will require the following:
- A duly filled application form from the DED.
- Passport and ID copies of the applicants.
- Plot maps, location blueprints and building completion certificates for the hotel property.
- Classification Card for the hotel business
- Passport Copy of the manager along with educational certifications and relevant experience letters.
- Department of Tourism and Commerce Marketing (DTCM) approved ‘Certificate of Conduct’.
- Approval from Dubai general police headquarters.
Get the License
To open a hotel business in Dubai you need to get a tourism license. To get this license the list of the required paperwork is as follows:
- Fee receipt of the initial approval
- Trade Name Certificate and related payment receipts
- NOC- No Objection Certificate- in case of international group or brand of hotels
- Minimum 90 days of tenancy contract approved by the landlord
- Valid Ejari Certification for the hotel property
- Initial approval documents and relevant certifications
- Consent from Dubai Municipality ( DM) and related judicial bodies for sanitation, waste management, public health, etc
Submit all of the aforementioned documents at the DTCM, and incase of error-free paperwork you will get your tourism license within a fortnight.
Print the License
DTCM offers e-services through which you can print the license yourself or you can also collect the license from the counter.
Or you can appoint business setup consultants in Dubai that will do the job for you, this method is the preferred method of the majority of the entrepreneurs as it allows for quick and hassle-free establishment of business.
Still clueless regarding the business setup process in Dubai? Contact KWS Middle East and we will take care of your problem and will help you plan better.
Contact Us today and book your Commitment-free consultation call with our team!