Dubai Tourism to release $68m in bank guarantees for tourism-related service providers
The deregulatory move is designed as a boost to the emirate's tourism sector by lowering the cost of doing business and encouraging further investment
Dubai Tourism has begun efforts to release approximately AED 250 million ($68.06 million) in bank guarantees furnished by tourism-related service providers, following the waiver of this prerequisite regulatory requirement to establish travel and tour businesses in the emirate.
Previously, tourism companies – including inbound and outbound tour operators – were required to furnish a bank guarantee of between AED 100,000 and AED 600,000 as a pre-condition for the Department of Economic Development to grant a trade license.
In a statement, Dubai Tourism said that the deregulatory measure will allow for liquidity to be instantly injected into Dubai’s economy, lowering the cost of doing business and encouraging further investment in the tourism sector.
“As we head into 2019 with a commitment to significantly boost tourism arrivals in our 2022-2025 tourism strategy and vision to make Dubai the world’s most visited destination,” Dubai Tourism director-general Helal Saeed Almarri said.
“Relaxing regulations in support of the business community, especially supporting start-ups and SMEs, is fundamental for sustained sector growth.”
Almarri added that “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.”
The new measure, Almarri added, has been delivered with the support of the (DED) and complements other initiatives designed to provide impetus to the industry.
“Releasing the bank guarantees generate 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,” he said.
Additionally, Almarri said that the move is a “positive signal” for prospective investors and new ventures to launch tourism projects.
Previously, tourism companies – including inbound and outbound tour operators – were required to furnish a bank guarantee of between AED 100,000 and AED 600,000 as a pre-condition for DED to grant a trade license.