Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) is working to release around $68 million in bank guarantees by tourism-related service providers, following the waiver of this prerequisite regulatory requirement to launch a travel and tour business in the emirate.
This new measure will allow for the further development of Dubai’s economy. It will lessen the cost of doing business and facilitate further investment in the sector ecosystem.
Dubai Tourism aims to directly benefit over 2,000 travel and tour operators and agencies in the city.
Director general, Dubai Tourism, HE Helal Saeed Almarri explained: “As we head into 2019 with a commitment to significantly boost tourism arrivals in line with our 2022-2025 tourism strategy and vision to make Dubai the world’s most visited destination, relaxing regulations in support of the business community, especially supporting start-ups and SMEs, is fundamental for sustained sector growth. Tourism is a strong contributor to Dubai’s GDP and we intend to ensure that we sustainably enhance our economic value and aid the diversification agenda for the wider UAE.
“As such, this deregulatory measure that has been delivered with the support of the Department of Economic Development (DED), complements many of our other initiatives to provide much-needed impetus to the industry, based on the landmark economic stimulus initiative launched by the visionary leadership of Dubai earlier this year to make it easier to operate and grow a business in Dubai. Releasing of the bank guarantees generates an immediate cash injection of nearly a quarter billion dirhams for travel and tourism-related service providers to invest back into their businesses and truly drive future growth, in addition to being a very positive signal for prospect investors and new ventures to launch tourism projects by taking advantage of the quick and hassle-free processes in place,” Almarri concluded.
Prior to this new initiative, tourism entities (including inbound and outbound tour operators) were required to furnish a bank guarantee ranging from approximately $27,000 to $163,000 to Dubai Tourism, as a precondition for DED to grant a trade license.
Removing the need for this provision allows Dubai Tourism to refund the bank guarantees to the companies, providing them with the funds to reinvest in their business and enhance their services.
Effective immediately, all new ventures will no longer require investors and entrepreneurs to provide these bank guarantees to Dubai Tourism.