As one of the most prolific industries in the UAE, tourism offers numerous investment possibilities to foreign entrepreneurs seeking to put money into it. From restaurants to hotels, there are plenty of business opportunities in the accommodation industry in Dubai.
In order to provide for the right environment, the Dubai government has enabled various laws and regulations which clarify the requirements for establishing hotels in the emirate. Our company formation consultants in Dubai can offer information on the legislation related to the hotel industry.
Regulations for opening a hotel in Dubai
The first step to set up a hotel in Dubai is to register a company with the Department of Economic Development. The registration of an onshore company will require a local partner or sponsor, while a free zone company is not subject to these requirements. Our company incorporation agents in Dubai can guide you through the business opening process.
Once the company is registered, the following regulations related to the hotel industry in Dubai must be complied with:
- the owner and the manager of the hotel must have good conduct which will be proved through a certificate;
- a hotel room may not have less than 30 square meters;
- submitting a bank guarantee in order to obtain the license issued by the Dubai Department of Tourism and Commerce Marketing (DTCM);
- using specific programs where the data of the clients are introduced;
- making sure the touristic packages are correctly displayed.
Our local consultants can offer more information on the Licensing of Tourist Establishments and Travel Agencies Act issued by the DTCM.
Hotel classification in Dubai
Foreign investors opening a hotel in Dubai must also comply with the regulations related to the classification of tourist establishments. Under the Tourism Law which was last amended in 2013, touristic establishments are now categorized into:
- hotel apartments;
- youth hostels;
- guest houses;
- holiday houses.
Holiday houses are further divided into standard or deluxe establishments. With respect to hotels, these can range from one-star to seven-star hotels.
For information on the requirements to establish a hotel in Dubai, do not hesitate to contact us.