Globally, Dubai ranks as the best city break destination for weekend trips or layovers. As per data from the Dubai Department of Economy and Tourism (DET), the city welcomed around 7.1 million international visitors between January and June 2022. The survey by TripAdvisor also shows that people prefer more short-term stays and weekend vacations that allow travelers to enjoy its compact scale in a short time.
Tourism has bounced back to pre-pandemic levels. We see millennials and young people opting for staycations and quick excursions more than before. According to a Precedence Research study, the global vacation rental market will outpace $111.2 billion by 2030. The effect is unlikely to be restrained in leisure travel. You will also notice the proliferation of work-from-home and hybrid-work policies across the corporate landscape.
Many professionals have started working away from their usual places of business—exploring new and exotic locales to rejuvenate themselves. These factors have created the perfect foundation for entrepreneurs focusing on starting businesses in the hospitality industry.
Heretofore, tourism was the exclusive domain of hoteliers and hospitality corporations. But now, businesses like Airbnb and HomeAway have changed the entire game.
Everybody with the means of setting up a place to host visitors at a competitive price can benefit from the imminent comeback of tourism. If you’re looking to cash in on this stellar opportunity by setting up a vacation home rental company in Dubai, look no further.
Here is a brief but functional guide to establishing a vacation home rental business.
Vacation Home Rental Business in Dubai on High-demand
As you all know, Dubai is an ideal destination for the tourism industry, as the city offers gleaming resorts, fancy restaurants, and high-end shopping malls.
The UAE is the perfect location that connects the East and the West, making the city a prime attraction for travelers and professionals looking for a stopover between flights.
Apart from the incredible destinations, tourist attractions, and ultra-luxury standards, the recent relaxation of visa policies has created a business-friendly environment to attract many people to the country. The country hosts several business conferences, art exhibitions, and stage shows. Recently, Expo 2020 brought in nearly 16 million visitors. These events open the region to international audiences. Most of the tourists who prefer short-term rentals in the UAE are mainly from the Middle East and European countries.
Dubai offers visitors the liberty to choose the luxury they prefer, depending on the season. During the summer, short-term rentals are very much in demand from UAE and GCC residents.
With the recent introduction of multiple-entry tourist visas, visas to visit relatives or friends, temporary work visas, and study or training visas, the trend of short-term rental stays is set to be a lucrative business.
These factors would also imply temporary stays by professionals working on discrete projects. Finally, there is also the fact that the city is world-renowned for its modernist architecture, tourist spots, and advanced infrastructure—things that would draw in visitors in large numbers once again as global travel normalizes. The ideal circumstances can unlock vast opportunities for people looking to start new hospitality ventures because a vacation home rental company would be one of the most in-demand businesses.
Perhaps more owners will turn their properties into vacation home rentals by offering various amenities and luxuries.
Set Up a Vacation or Holiday Home Rental Company
A holiday or vacation rental home is any furnished residence rented to guests based on specific activity terms and conditions for a short-term period. The residence can be a studio, multiple-bedroom apartment, or villa.
The area you set up your residence decides the profit you will earn. You can benefit from high rental yields by converting properties into vacation homes.
Setting up a vacation home rental business will require you to obtain a trade license for the designated activity. You must register and apply for initial approval through the Department of Economy and Tourism (DET). The holiday homes are then inspected as per the specifications and conditions.
DET issues the vacation rental license to market the properties. With the full-fledged traveling possibilities, the luxury vacation homes in Dubai attract more people.
Apart from the above, all licensees must register with the Holiday Home System through the Department of Tourism and Commerce Marketing (DTCM)
How can Ascent Partners help?
Ascent Partners has years of experience helping companies set up business in Dubai.
With services ranging from business consultation and bank account opening to choosing the right business activity and applying for a business licence, our experts help provide essential guidance to help you strategise, startup, and scale in Dubai.
For more details, get in touch with us today at ask@ascentpartners.ae or 04 422 7339