By Matthew Evans, CEO of Corpline
Dubai’s thriving tourism sector makes it one of the most profitable destinations for short-term rental businesses. With its luxury appeal, year-round tourist influx, and investor-friendly regulations, setting up a holiday homes company can be a lucrative business venture. Having previously been in the holiday homes industry myself, I understand the challenges and opportunities that come with operating in this space. In this guide, I’ll walk you through the step-by-step process of setting up and running a successful holiday homes business in Dubai.
Step 1: Understand the Dubai Holiday Homes Market
Dubai has a high demand for short-term rentals, driven by tourists, business travelers, and digital nomads. The rise of Airbnb, Booking.com, and other rental platforms has made holiday homes a competitive alternative to hotels. However, regulations and licensing play a crucial role in ensuring compliance with Dubai’s laws.
Before diving in, research:
✅ Location Demand – Areas like Dubai Marina, Downtown Dubai, Palm Jumeirah, and JBR are top-performing neighborhoods.
✅ Market Trends – Analyze average occupancy rates, rental yields, and peak seasons.
✅ Competitor Pricing – Look at similar listings on Airbnb and Booking.com to set competitive rates.
Step 2: Choose the Right Business Structure
To legally operate a holiday homes company in Dubai, you must register a business with the Department of Economy and Tourism (DET). You have two main options:
1. Mainland Company
✅ Allows you to manage multiple holiday home properties under one license.
✅ Provides flexibility in signing direct contracts with landlords.
✅ Requires local licensing approvals from the Dubai Department of Economy and Tourism (DET).
Step 3: Obtain the Holiday Homes License
To legally operate, you need a Holiday Homes Operator License from the Dubai Department of Economy and Tourism (DET). The process includes:
✅ Registering your trade name (Ensure it aligns with Dubai’s naming regulations).
✅ Getting initial approval from the DET.
✅ Securing Ejari (Tenancy) Contracts for the properties you will manage.
✅ Applying for the Holiday Homes Permit through the DET system.
Cost Estimate:
💰 Business License: Starting from AED 10,000 – 15,000 annually.
💰 DET Holiday Home Permit: Around AED 370 per unit, per year.
Step 4: Setting Up Your Holiday Homes for Guests
Once you have your license, the real work begins! To attract guests and ensure high ratings, your properties need to meet Dubai’s holiday home standards.
🏡 Furnishing & Interior Design – Invest in modern, stylish furniture and provide all essential amenities.
🛏 Cleaning & Maintenance – Professional housekeeping is key for high guest satisfaction.
📸 Professional Photography – High-quality images increase bookings on platforms like Airbnb.
💡 Smart Pricing & Management – Use dynamic pricing tools to adjust rates based on demand.
Step 5: Marketing & Listing on Booking Platforms
To maximize occupancy, your holiday homes should be listed on multiple booking platforms, including:
✅ Airbnb – One of the most popular short-term rental platforms.
✅ Booking.com – Ideal for international travelers.
✅ Expedia & Agoda – Great for additional exposure.
Marketing Tips:
📌 SEO-Optimized Listings – Write compelling descriptions and use high-ranking keywords.
📌 Social Media Marketing – Promote your properties on Instagram, Facebook, and TikTok.
📌 Google Ads & Paid Promotions – Invest in targeted ads to attract high-paying guests.
Step 6: Compliance & Ongoing Operations
Operating a holiday home business in Dubai requires ongoing compliance with DET regulations, such as:
✅ Guest Registrations – Every guest must be registered through the Dubai Tourism system.
✅ Tourism Dirham Fee – Guests must pay AED 10–15 per room, per night depending on the category of your property.
✅ Annual License Renewal – Keep your holiday home permit updated each year.
Additionally, good customer service is essential for maintaining high ratings. Respond promptly to guest inquiries and address any issues immediately to maintain 5-star reviews.
Why Now Is the Best Time to Start a Holiday Homes Business in Dubai
Dubai’s short-term rental market is booming, with Expo 2020, the influx of digital nomads, and visa reforms fueling demand. The Golden Visa and 10-year residency programs are also attracting long-term investors to this industry.
With proper licensing, smart property management, and effective marketing, a holiday home business can be a highly profitable venture in Dubai.
At Corpline, we specialize in helping entrepreneurs set up businesses in Dubai with end-to-end support. Whether you need help with licensing, business setup, or structuring your company, our team is here to guide you.
👉 Get started today! Book a free consultation with Corpline: https://corpline.ae/contact/
