Dubai is one of the favorite holiday destinations in the world. The tourism sector is the backbone of Dubai’s economy. Countries like the UAE are not dependent on their oil reserves now. They are more focused on developing their cultural essence and attracting tourists spots. Dubai City also won its third consecutive Traveller's Choice Award for the best global destination. Data reveals that more than 5 million people visited Dubai in Q1 of 2024.
This number is 11% higher than in 2023. This growth opens a substantial opportunity for the Airbnb business model. The need for a variety of lodging choices, including short-term rentals and Airbnb units, has surged along with the city's continued appeal to international visitors.
Understanding the Airbnb Model in Dubai
Airbnb models look like a typical hospitality business at first sight, but it offers more lucrative deals to visitors than other traditional hotels.
Since Dubai is the fourth most visited city in the world, many tourists are searching for different kinds of lodging to match their demands and financial plans.
- In this Airbnb business, a property owner can rent or lease their vacant property on the platform. In the same way, travelers can simply visit the website and take a property or apartment for rent. An individual can own up to eight properties on Airbnb, which can be his or her personal property, and a host of other properties may be managed and rented out through a business registered with the Dubai Department of Economic Development (DED).
- Airbnb is a growing digital platform that has evolved the idea of lodging and tourism. This website invites property owners (hosts) with available living spaces to the tourists looking for a good place to stay.
- Airbnb is a trailblazing online platform that’s changed how we think about lodging and tourism. It connects hosts with available living spaces to travelers looking for a place to stay. Unlike conventional hospitality services, Airbnb does not own any of the homes that are advertised.
- However, it acts as a middleman, assisting hosts in profiting from their vacant space, be it a single room, apartment, or customized lodging. Since its beginning in San Francisco in 2008, Airbnb has expanded globally, providing millions of listings across hundreds of locations and many nations.
Steps to Start an Airbnb Business in Dubai
Step 1: Choose your business name
Step 2: Select your company activity and Jurisdiction
Step 3: Apply for a trade license
Step 4: Apply for a visa
Step 5: Get a trade license for your venture
Step 6: Must open a corporate bank account
Step 7: List your property with Dubai Tourism.
You get all the key information to start an Airbnb company in Dubai. It’s time to go through the legal requirements and licensing process for Airbnb businesses.
What are the Legal Requirements and Licensing Process for Airbnb Company in Dubai
Setting up an Airbnb business in Dubai is similar to other business setups. Hosts just need to fulfill some legal requirements and secure a trade license to regulate their business flawlessly.
Registration of Airbnb Business
Regulating an Airbnb business in Dubai requires a valid registration under Dubai Economy and Tourism (DET). This is the first and the most crucial step to ensure business compliance and regulations. It also secures the interests of both hosts and travelers. You can streamline the business setup process with the right professional consultants.
Secure a Required Business License
After the complete registration process, it is important to seek approval from the Dubai Economy and Tourism Department website.
Business owners must pay a fee at the Dubai Tourism Office and submit significant documents. Once the documents are approved, you will become a duly licensed provider of Airbnb holiday homes.
Hosting Permit
The last remaining step to follow after all these legal requirements is obtaining a hosting permit.
Log on to the DET website, complete the property data form by selecting the option Add Unit, prepare the required papers, and wait for DET (Department of Economy and Tourism in Dubai) approval. You will get a permission letter that must be displayed on the property.
Another benefit of the Airbnb business is that you can provide a property without being a landlord. In this case, you must have a No Objection Certificate from the property owner and list the vacant space on the Holiday Homes website run by Dubai Tourism. This license is a testament to security, quality, and standard accommodation necessity.
The reason behind the Airbnb business is the consumer’s satisfaction under budget. This is a great opportunity for the hosts to connect with global travelers and impress them with their property.
If you also own multiple properties and want to capitalize in the thriving Dubai market, let's not delay and contact Markai Corporate Services to secure an Airbnb business license. We assist you from the first step to the last step of your business and allow you to taste success.
