Dubai is undoubtedly enjoying the top spot worldwide in tourism sector. The continued growth in tourism has also brought in many options to provide accommodation facility to visitors which include hotels, hotel apartments and vacation home rentals (short term rental in individual apartments and villas).
Each accommodation facility is controlled by Government enforcing licensing and regulatory requirements to protect the overall law and order Dubai and provide quality and safe stay for visitors in Dubai.
An activity of licensing Holiday homes in Emirates of Dubai is regulated by decree No. 41 of 2013. It gives a definition of Holiday homes. Holiday homes are furnished property units rented by license holder for the purpose of subletting them to guests who intend to use them for overnight purpose. These units are located in different buildings or communities and usually do not have facilities like bar, restaurant, SPA etc.
Following are the main parameters.
• The main licensing departments are Department of economic development Dubai and Department of Tourism and commerce marketing.
• License holder can rent units located at different locations in Dubai and each unit has to be registered under DTCM as holiday home.
• License holder scope is restricted to rental of the unit only and having provision of telephone line in order for Guests to use it in case of any emergency. License holder cannot
provide services which are out of the unit and located in the building where holiday home is located.
• Holiday home unit has to be rented as a whole only and cannot be rented partially or as a bed space.
• 10% municipality tax has to be collected separately from guests along with AED 10 for Dubai tourism dirham fees for standard holiday home and AED 15 for deluxe holiday home per night.
• It is mandatory to obtain NOC from the unit owner that he has no objection for the unit to be sub leased by license holder.
• The license holder must to have an experience in hospitality sector.
• The DTCM will register, monitor and inspect holiday homes and hotel apartments to comply with set standards.
• Each licensed property will have to display an official certificate of registration by the DTCM within the property.
• Licensed properties will have to be properly and regularly maintained.
• Electricity and water must be provided to customers at no additional charge.
• Licensees will be required to participate in the electronic program of guest registration for hotel and tourism establishments.
• License holder must provide data and statistics to the DTCM for guests.
• Licensees will require insurance to the required specification of the DTCM for the duration of the license term.
A Flyingcolour business setup service is a leading corporate service provider company having more than 13 years of experience in Dubai. The author of this article Mr. Raj Herry is having extensive knowledge in company incorporation services. Please call 04 4542366 or send email on raj [at] flyingcolour [dot] com