Dubai opens path to holiday home operator licenses

From June 15, all holiday home operators in Dubai will need licenses

Holiday Home operators will need a license from June 15
Holiday Home operators will need a license from June 15

Dubai’s Department of Tourism and Commerce Marketing (DTCM) has begun receiving applications for the license to become an operator of holiday homes in the emirate.

From June 15, the operating of residential properties for use as holiday homes will be restricted to licensed operators.

The organisation announced regulations for the industry in December after HH Sheikh Mohammed bin Rashid Al Maktoum, the ruler of Dubai, issued a decree.

As DTCM explained to Hotelier Middle East after the announcement, by regulating the holiday home market it is bringing it into line with the regulation of the hotel sector, including adding two new categories to the hotel classification framework – ‘Holiday Home – Standard’ and ‘Holiday Home – Deluxe’.

The first phase of applications is restricted to entities which intend to be an operator of a portfolio of properties, with the minimum number of properties within the portfolio being 20.

Home owners who wish to rent out their property as a holiday home will be required to use the services of a licensed operator, with their property becoming part of the operator’s portfolio.

DTCM executive director of licensing and classification Khalid bin Touq said: “Through regulating the use of properties as holiday accommodation, the objective is to broaden the range of options available to visitors, while ensuring that the high standards of quality for which Dubai is known, are maintained.

“Visitors booking their accommodation through licensed operators will have the assurance that the accommodation they are booking has been classified in line with global best practices, while owners of properties will benefit from the expertise and marketing capabilities of the operator through who they rent out their property.”

The first stage of the trade license application process is to apply for an Initial Approval. Upon successfully receiving the Initial Approval, the applicant will have a maximum of three months in which to satisfy the requirements for the final license and consequently become a licensed operator.

A Holiday Home is classified as a furnished accommodation which is rented as a whole unit on a daily, weekly, monthly or annual basis without the issuance of an EJARI regulated tenancy agreement and should be registered with DTCM.

In order to apply for the Initial Approval, interested parties should visit the DTCM website and download the ‘Initial Approval Requirement for Holiday Homes’ form.

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