Published on : Monday, January 14, 2019
For tourism-related service providers Dubai Tourism has released approximately $68 million in bank guarantees to start travel and tour business in the emirate. This is followed by the waiver of the prerequisite regulatory requirement.
Dubai’s economy will get instant liquidity via the new deregulatory measure that will facilitate in lowering the cost of doing business and help further investment in the sector.
Through this the Dubai Tourism wants to directly benefit more than 2,000 travel and tour operators and agencies in Dubai. This is in complete alignment with the directive of HH Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of UAE and Ruler of Dubai to bring about a surge in Dubai’s economic growth through regulatory initiatives.
Announcing the new measure, director-general of Dubai Tourism, Helal Saeed Almarri said that as they were heading into the new year with the promised of boosting tourism arrivals keeping in mind 2022-2025 tourism strategy and vision to turn Dubai into the world’s most visited destination.
Dubai’s GDP is majorly supported by tourism and the nation wants to sustainably enhance the economic value and help in diversification agenda for the wider UAE.
With support of the Department of Economic Development (DED) the deregulatory measure was delivered that will be complementing several initiatives needed to the industry.
There will be an immediate cash injection of around a quarter billion dirhams for travel and tourism –related services providers to make investment in their business by releasing the bank gurantees. There is a positive growth signal for prospect investors and new ventures to launch projects by making the most of the new process in place.
Earlier inbound and outbound tour operators had to provide bank guarantee that ranged between Dh100,000 ($27,224.2) to Dh600,000 ($163,345) depending on the type of business activity to Dubai Tourism. This was a precondition for DED to grant a trade license.
If the provisions is cancelled Dubai Tourism will be enabled to refund the bank guarantees to the companies that will provide the much-needed funds to reinvest in business.