Dubai Tourism exempts 2,000+ travel agencies from furnishing bank guarantees, injecting a quarter billion dirhams liquidity into its economy.
Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) has initiated efforts to release approximately AED 250 million in bank guarantees that have been furnished by tourism-related service providers, following the waiver of this prerequisite regulatory requirement to start a travel and tour business in the emirate. The new deregulatory measure allows for instant liquidity to be injected into Dubai’s economy, lowering the cost of doing business and supporting further investment in the sector ecosystem. Dubai Tourism seeks to directly benefit over 2,000 travel and tour operators and agencies in Dubai. H E Helal Saeed Al Marri, Director General, Dubai Tourism, said, “As we head into 2019 with a commitment to significantly boost tourism arrivals in line with our 2022-25 tourism strategy, relaxing regulations in support of the business community, especially supporting start-ups and SMEs, is fundamental for sustained sector growth. 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. As such, this deregulatory measure that has been delivered with the support of the Department of Economic Development (DED), complements many of our other initiatives to provide much-needed impetus to the industry, based on the landmark economic stimulus initiative launched by the visionary leadership of Dubai earlier this year to make it easier to grow a business in Dubai. Releasing of the bank guarantees generates 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, in addition to being a very positive signal for prospect investors and new ventures to launch tourism projects by taking advantage of the hassle-free processes.” Previously, tourism companies including inbound and outbound tour operators were required to furnish a bank guarantee ranging from AED 100,000 to AED 600,000 to Dubai Tourism.