In this interview, Vitaliy Chiryassov, CEO of international consulting company UPPERCASE and CEO of UPPERSETUP, discusses the prospects and challenges of opening a tourism business in the UAE. This innovative technological project helps with swift business registration and management in the UAE.
1. Question: Dubai and, to a lesser extent, Abu Dhabi are among the hottest tourism destinations—no surprise there. But looking beyond the obvious, what makes the UAE such a good place to start a tourism business?
Answer: Well, first of all, the UAE has a unique combination of infrastructure and government support that’s hard to find elsewhere. The country has invested billions in airports, roads, and attractions that make tourism operations seamless. Just look at the numbers — Dubai alone welcomed over 17 million international visitors last year, and that figure keeps climbing.
But what sets the UAE apart is how the government views tourism as a strategic sector for economic diversification. They’re actively creating incentives for tourism businesses through simplified licensing procedures and special zones like Dubai Tourism and Commerce Marketing (DTCM) that provide direct support. I’ve seen clients get their tourism licenses approved in half the time it would take in other markets.
2. Question: For entrepreneurs looking to break into the tourism industry here, what are the biggest challenges they’re likely to face? And more importantly, what’s the best way to handle them?
Answer: The biggest challenge is the competition. The UAE tourism market is crowded with well-established local and international players. Some of our clients come in with an idea to launch a desert safari company, and I just tell them to type Desert Safari into Google and see how many pins there are on the map. Look, UAE tourism still has many niches where it’s totally possible to set yourself apart, but you need to approach it right.
The best way to handle this is through proper market research and finding your unique angle. Understand what existing businesses are doing, then identify gaps in the market. I always advise clients to spend time as tourists themselves before launching
3. Question: The UAE is known for its business-friendly environment, but the tourism sector must come with its own set of legal and regulatory hoops to jump through. What should new business owners be most mindful of?
Answer: In Dubai, you’ll need approval from the Department of Tourism and Commerce Marketing (DTCM) before you can even apply for your trade license. This process requires detailed documentation of your proposed activities, safety protocols, and staff qualifications.
Another important thing is the classification of your business. Activities like tour operations, desert safaris, and marine tourism each fall under different regulatory frameworks with specific compliance requirements.
For example, the marine tourism license process requires approvals from the maritime authority, the environmental agency, and even the coast guard. The penalties for operating without proper permits are severe, and businesses can absolutely shut down because they missed obtaining the right activity code on their license, so that’s something that is very important to get right.
4. Question: With so many established players in the UAE’s tourism industry, how can a new business cut through the noise and stand out? Is it about niche experiences, pricing, marketing, or something else?
Answer: This is down to multiple things, but the most successful new entrants I’ve seen focus on experience design first. They create something memorable that guests want to share. For example, you could launch a food tourism business highlighting hidden local eateries unknown to most tourists.
Technology integration is another differentiator. The UAE tourist is typically tech-savvy and expects convenience. Companies that offer seamless booking, personalized itineraries, and digital guides tend to perform better. But perhaps most important is authenticity. Despite the UAE’s ultramodern image, tourists increasingly seek authentic cultural experiences. Businesses that balance luxury with genuine Emirati cultural elements have a significant advantage.
5. Question: What are some of the most common mistakes people make when entering this market, and how can they avoid them?
Answer: This might sound surprisingly basic, but it’s probably underestimating startup costs. It’s common to calculate license fees and basic operational expenses and forget about marketing costs, which are going to be substantial. Businesses with excellent offerings can fail simply because they couldn’t afford to maintain visibility long enough to gain traction, or burned through their marketing budget doing it wrong.
Another thing is misunderstanding the seasonality. Visitor numbers plummet in summer. It’s dangerous not to factor that in. Smart businesses develop alternative revenue streams or adjust their offerings for the off-season. For example, focusing on resident experiences during summer or targeting business travelers who visit year-round.
And, last but not least, many newcomers fail to build strong relationships with hotels and other tourism stakeholders. These partnerships are crucial for customer acquisition in the early stages.
6. Question: When setting up a tourism business in the UAE, how much does having the right local connections matter? Is it something that can make or break a business?
Answer: This can make or break your business here. The UAE operates on relationships far more than many Western entrepreneurs initially realize. Having the right contacts can expedite licensing, help navigate regulatory hurdles, and open doors to partnerships that might otherwise remain closed.
When we work with clients, for instance, it’s very common that business gets done simply through personal introductions with the right people. But in general, attend industry events, join tourism associations, and consider working with consultants like us who already have established networks.
7. Question: The UAE hosts massive events like Expo Dubai, and there are big seasonal shifts in tourism demand. How should businesses prepare for these ups and downs?
Answer: Flexibility is key to managing the UAE’s tourism cycles. For instance, businesses with adaptable staffing models — using contractors during peak seasons rather than maintaining a large year-round team — can weather the fluctuations better. Some companies may shift 60% of their guides to part-time during summer and focus on evening experiences when temperatures are more tolerable.
For major events like Expo, preparation should start at least a year in advance. This means securing partnerships, adjusting inventory, and developing special offerings. The companies that wait until the last minute struggled with logistics and missed opportunities. Smart businesses also use the quieter periods for team training, product development, and targeting the domestic market. The resident population offers substantial revenue potential during off-peak seasons.
8. Question: Let’s talk marketing. With so much happening online now—social media, booking platforms, influencer partnerships—what’s the smartest way for a tourism business to attract customers?
Answer: Focus on platforms where your target audience actually spends time. For luxury tourism experiences, Instagram, TikTok and YouTube currently deliver the best ROI in the UAE market.
Partnerships with booking platforms should be selective. While platforms like Viator and GetYourGuide provide visibility, their commissions can be very high, which erodes margins. The most successful tourism businesses develop a mix of direct booking channels and strategic partnerships. I think that marketing should focus on the unique narrative your experience offers, not just features and pricing.
9. Question: Eco-tourism and sustainability are gaining traction worldwide. Do you think there’s real demand for that in the UAE, and if so, how can businesses tap into it without sacrificing profitability?
Answer: There’s definitely growing demand for sustainable tourism in the UAE, particularly among European and younger travelers, who increasingly make booking decisions based on environmental credentials.
The government is also pushing this direction with initiatives like Dubai Sustainable Tourism and Abu Dhabi’s sustainability certification program. The key to profitability is integrating sustainability in ways that enhance the experience rather than just adding costs. For example, using electric vehicles for desert safaris, which not only reduces carbon footprint but also creates a unique selling point — silent desert experiences where guests could hear the wind in the dunes. Another approach could be highlighting conservation efforts as part of tours.
10. Question: Say someone comes to you today and says, ‘I want to start a tourism business in the UAE next year.’ What’s the first thing you’d tell them?
Answer: So many entrepreneurs rush to set up their business without truly understanding what gap they’re filling in the market. I’d say, spend some time as a tourist in the UAE yourself — experience what’s already available and identify what’s missing.
The second step is proper financial planning. Tourism businesses in the UAE can take 12–18 months to break even, so ensure you have sufficient capital to sustain operations during this period. At UPPERCASE, we can help you conduct market research, develop a business plan with realistic financial projections, and acquire all necessary licenses. The tourism sector presents incredible opportunities here, and with know-how, it’s entirely possible to launch a lucrative business in the UAE.
