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Licences & changes

The tourism licence

Travel agencies, tour operators and holiday home management each need approval from the emirate's tourism authority on top of the trade licence — plus, for outbound travel, a bank guarantee.

DET / DCT approvalBank guarantee for outboundSeparate from the licence

What it covers

What this licence actually permits.

Tourism activities are licensed by the emirate's economic department but regulated separately by its tourism authority — the Department of Economy and Tourism in Dubai, the Department of Culture and Tourism in Abu Dhabi. The categories are distinct and matter: inbound tour operation, outbound travel agency, travel agency acting as an intermediary, and holiday home management are separately permitted activities with different requirements. Outbound travel typically requires a bank guarantee, and the manager is usually required to hold relevant experience.

The bank guarantee is the item that catches new operators, because it is a real capital commitment rather than a fee, and it exists to protect travellers whose money has been taken for a trip that has not yet happened. The amount depends on the activity, it must be in place before the licence is issued, and it ties up capital for the life of the licence. Holiday home management is a separate regime again, with its own permit, unit-by-unit registration, tourism dirham collection and standards inspections — closer to hospitality regulation than to travel.

At a glance

Regulators
DET in Dubai, DCT in Abu Dhabi, and equivalents elsewhere
Categories
Inbound, outbound, intermediary travel, holiday home management
Bank guarantee
Typically required for outbound travel
Manager
Usually required to hold relevant experience
Holiday homes
Separate permit, unit registration and tourism dirham
IATA
A separate accreditation, not part of the licence

What it costs

Bank guarantee55%Capital locked for the life of the licence, not a fee
Tourism authority approval20%DET, DCT or the emirate's equivalent
Trade licence and fees15%Issued on the back of the tourism approval
Manager experience requirement10%Documented track record in the sector

Proportions indicative — they shift with visa count, premises and activity.

Operators budget the licence and are surprised by the guarantee, which is discovered at the end.

The procedure

What the amendment involves.

  1. Identify the exact categoryInbound, outbound, intermediary and holiday home management have different requirements and different guarantees.
  2. Budget the bank guarantee as capitalIt is not a fee. It must be in place before issuance and is tied up for the life of the licence.
  3. Confirm the manager's experience requirementTourism authorities commonly require a manager with a documented track record in the sector.
  4. Obtain tourism authority approval before the licenceThe economic department issues on the back of it, not the other way round.
  5. For holiday homes, register each unitPlus tourism dirham collection and compliance with the standards regime.
The mistake people make. Budgeting for the licence and not the guarantee. An outbound travel guarantee is a substantial sum locked up for the life of the licence, and it is discovered at the point the application is otherwise complete.

Related

Questions

A trade licence plus approval from the emirate's tourism authority, with the category depending on whether you operate inbound, outbound or as an intermediary.

Outbound travel typically requires one. The amount depends on the activity and it must be in place before the licence issues.

It is a separate regime with its own permit, unit-by-unit registration and tourism dirham obligations.

IATA is a separate industry accreditation, not part of the UAE licensing requirement, though many agencies pursue it.

One question

What are you actually trying to change?