Regulation No. (6) of 2006

Concerning the

Licensing of Tourist Establishments and Travel Agencies[1]

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We, Hamdan bin Mohammed bin Rashid Al Maktoum, Chairman of the Executive Council,

After perusal of:

Law No. (3) of 2003 Establishing the Executive Council of the Emirate of Dubai; and

Law No. (1) of 1997 Establishing the Department of Tourism and Commerce Marketing and its amendments,

Do hereby issue this Regulation.

Article (1)

This Regulation will be cited as “Regulation No. (6) of 2006 Concerning the Licensing of Tourist Establishments and Travel Agencies”.

Article (2)

The following words and expressions will have the meaning indicated opposite each of them unless the context implies otherwise:

UAE:	The United Arab Emirates.
Emirate:	The Emirate of Dubai.
DTCM:	The Department of Tourism and Commerce Marketing.
Director General:	The director general of the DTCM.
Person:	Any natural or legal person.
Establishment:	An establishment where a Person conducts any tourist activity.
Licence:	A licence to conduct a tourist activity.
Appointed General Agent for Airline/ Airlines:	A Person who is appointed as a commercial agent for one or more airlines, is licensed by law, sells air tickets for destinations outside of the UAE, and organises outbound tourism programmes offered by these airlines or his own tourism programmes.
Travel and Tourism Agent:	A Person who sells air tickets for destinations outside of the UAE, and provides related services such as processing of residency and visa applications; organising tours; and providing transportation, and sells tourism programmes organised by Outbound Tour Operators.
Outbound Tour Operator:	A Person who organises tourism programmes outside of the UAE and sells such programmes through Travel and Tourism Agents.
Inbound Tour Operator:	A Person who organises and conducts domestic tours; and makes arrangements for inbound tourism, including incentives, conferences, exhibitions, and local events tourism. Such arrangements include processing visa applications and providing transportation, hotel accommodation, and similar services.
Committee:	A committee that considers complaints against Establishments.

Article (3)

Tourist activities include:

1. Appointed General Agent for Airline/ Airlines;

2. Travel and Tourism Agent;

3. Outbound Tour Operator; and

4. Inbound Tour Operator.

Article (4)

An Establishment may not conduct any tourist activity in the Emirate without obtaining a relevant Licence from the DTCM.

Article (5)

Any Person wishing to obtain a Licence for any tourist activity mentioned in this Regulation must comply with the special requirements for that tourist activity, as stated in Schedule (2) of this Regulation, and with the following general requirements:

1. maintaining an independent office space of an area not less than forty square metres (40 sq. m) for conducting each tourist activity;

2. submitting recent certificates of good conduct for both the owner and the manager in charge of the Establishment;

3. appointing a manager in charge and three (3) employees for each tourist activity. Such manager must have three (3) years of work experience in the tourist activity if he holds a university degree or a certificate with a major in tourism and travel; or five (5) years of work experience in the tourist activity, if he holds a general secondary school certificate;

4. submitting an undertaking to provide clients with complete and correct information on the tourism programmes;

5. submitting an undertaking to respond to any complaint filed with the DTCM against the Establishment within one (1) week from the date on which the Person is notified of such complaint;

6. submitting an undertaking to provide the DTCM with any documents, information, or statistics the DTCM deems required;

7. submitting an undertaking to inform the DTCM of the name of the manager in charge and of any relevant variation;

8. maintaining a notice board at the entrance of the Establishment on which working hours and weekends are stated in Arabic and English; and

9. providing an irrevocable bank guarantee, in favour of the DTCM, issued by a bank operating in the Emirate for the amount of two hundred thousand Dirhams (AED 200,000.00) per activity, to settle any disputes arising between the Establishment and a client. This bank guarantee must remain valid unless the Licence is revoked.

Article (6)

The Director General may issue a resolution granting an Establishment a grace period ending no later than 31 July 2008 to comply with any of the general requirements stipulated in the preceding Article of this Regulation, and with any special requirements stipulated in Schedule (2) of this Regulation.

Article (7)

The DTCM will collect fees from Establishments in accordance with Schedule (1) of this Regulation. The term of the Licence may be one (1) year or more.

Article (8)

An Establishment organising inbound or outbound tours must provide insurance coverage to tourists and travellers against all risks and damage that may arise from these tours, under an insurance policy that must remain valid throughout the term of the Licence and for one (1) month after expiry of the Licence.

Article (9)

Sellers of outbound or inbound tours must:

1. perform all elements of the tour as stated in print advertising material or booking form, in accordance with Schedule (2) attached hereto;

2. provide equivalent alternative service in lieu of any altered element of the tour, provided the client consents in writing; and

3. refund to the client the amounts paid for the altered or missing element of the tour, where the client does not consent to the alternative service.

Article (10)

The DTCM may issue an entity applying for a Licence with an initial approval to satisfy the special requirements for the relevant tourist activity. This initial approval will be valid for a term of three (3) months and renewable once for the same period.

Article (11)

Without prejudice to the provisions of any other law, an Establishment may not perform any act of unfair competition.

Article (12)

For the purposes of determining complaints filed against Establishments involving claims not exceeding one hundred thousand Dirhams (AED 100,000.00), a Committee will be formed within the DTCM of three (3) persons appointed pursuant to a resolution of the Director General. Two (2) of these persons will be from amongst the employees of the DTCM, one of whom, the legal counsel of the DTCM, will be the chairman of the Committee, and the other will be an expert in the tourism industry.

Article (13)

The Committee must notify an Establishment of the complaint filed against it to respond to the complaint, and must notify the complainant of this response. Where the response is not acceptable to the complainant, the Committee will summon both parties to appear before it at scheduled date and time in order to consider the complaint.

Article (14)

In considering complaints, the Committee will take into account the fundamental rules of litigation, and ensure the right of each party to defence.

Article (15)

The Committee will determine complaints pursuant to a reasoned decision made unanimously or by majority vote. The decision of the Committee will be final and non-appealable.

Article (16)

Where the awarded amount is not directly paid by the party against whom a decision is issued, the Committee will send a letter to the Director General attaching a copy of the decision so that the awarded amount will be deducted from the bank guarantee.

Article (17)

An Establishment against which a decision is issued must deposit an amount equal to that deducted from the bank guarantee within one (1) week from the date of deduction.

Article (18)

DTCM inspectors will have the capacity of law enforcement officers, and the power to inspect and supervise Establishments and record any act committed in breach of this Regulation.

Article (19)

An Establishment, against which any of the violations set out in Schedule (3) is recorded, may submit a written grievance to the Director General within fifteen (15) days from the date of being notified in writing of the violation.

The Director General will determine the grievance within twenty-one (21) days from the date of its submission. The Director General may dismiss the grievance, or amend the penalty partially or wholly.

Article (20)

The Director General will issue the bylaws, instructions, and administrative resolutions required for the implementation of this Regulation.

Article (21)

This Regulation will be published in the Official Gazette and will come into force one (1) month after the date on which it is published.

Hamdan bin Mohammed bin Rashid Al Maktoum

Chairman of the Executive Council

Issued in Dubai on 18 October 2006

Corresponding to 25 Ramadan 1427 A.H.

Schedule (1)

Fees for Tourist Establishments and Travel Agencies

SN	Description	Fees (in Dirhams)
1	Issuing a Licence	300.00
2	Adding a partner	500.00
3	Adding an activity	500.00
4	Changing/ Adding a manager	500.00
5	Relocating the place of business	500.00
6	Variation/ Renewal of Licence	500.00
7	Changing activity	500.00
8	Fine for failure to renew the Licence (per month)	200.00
9	Issuing a replacement of a lost Licence	500.00
10	Removing the name of a manager from the Licence	500.00
11	Removing the name of a partner from the Licence	500.00
12	Reserving the trade name of an Establishment	200.00
13	Choosing a trade name for an Establishment indicative of the neighbourhood (for one year)	1,000.00
14	Choosing a foreign trade name for an Establishment	2,000.00
15	Variation of the trade name of an Establishment	500.00
16	Withdrawal of a partner	500.00
17	Sale of an Establishment	500.00
18	Adding and determining heirs	500.00
19	Devolution of Licence	500.00
20	Changing the nationality of an owner/ partner	500.00
21	Choosing a trade name indicative of a city/ country/ region (Dubai, UAE, Gulf, etc.)	2,000.00
22	Choosing a name containing a trademark (franchise)	1,000.00
23	Choosing an abbreviated trade name for an Establishment (A.B.C…etc.)	2,000.00
24	Changing the legal form	500.00
25	Removing an activity from the Licence	500.00
26	Cancelling a procedure	500.00
27	Issuing a replacement of a lost commercial registration certificate	50.00
28	Variation of the name of an owner/ partner	500.00
29	Initial approval	100.00
30	Revocation of a Licence	500.00
31	Issuing tourism certificates	100.00
32	Declaring the death of the owner	500.00

Schedule (2)

Special Requirements for Tourist Activities

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Article (1)

An Establishment wishing to conduct any of the tourist activities listed hereunder must satisfy the general requirements and the special requirements for this tourist activity:

I. Special Requirements for Licensing an Appointed General Agent for Airline/ Airlines:

1. An applicant must submit a “No Objection Letter” issued by the Department of Civil Aviation.

2. The place of business must have a display window that is appropriate for its location.

3. The place of business of the Establishment must comprise an internal display area to show the print materials of the airlines represented by the Establishment.

4. The Establishment must have an international reservations system that is compatible with the travel industry standards such as Galileo, Sabre, or any other General Distribution system. Alternatively, the Establishment must undertake to provide this system within three (3) months from the date of approval of the Licence.

5. For the purpose of selling the tourism programmes organised by the agent or offered by the airlines represented by him, an Appointed General Agent for Airline/ Airlines must undertake to:

a. issue a booking form in accordance with the booking form template prescribed by Article (2) of this Schedule; and

b. provide an insurance policy to cover the risks that may be encountered during these tourism programmes. The insurance policy must remain valid throughout the term of the Licence and for one (1) month after expiry of the Licence.

II. Special Requirements for Licensing Travel and Tourism Agents:

1. An applicant must submit a “No Objection Letter” issued by the Department of Civil Aviation.

2. The place of business must have a display window that is appropriate for its location.

3. The Establishment must have an international reservations system that is compatible with the travel industry standards such as Galileo, Sabre, or any other General Distribution system. Alternatively, the Establishment must undertake to provide this system within three (3) months from the date of approval of the Licence.

4. A Travel and Tourism Agent must undertake to buy air tickets from an Appointed General Agent for Airline/ Airlines in the Emirate or from another Travel and Tourism Agent in the Emirate.

5. A Travel and Tourism Agent must undertake not to sell air tickets of airlines that are not represented by an Appointed General Agent for Airline/ Airlines in the Emirate.

6. Where outbound tours are offered:

a. the place of business must have an internal display area for various print materials;

b. tourist destinations print materials of Outbound Tour Operators and airlines must be displayed;

c. in case of tours organised by Outbound Tour Operators, a Travel and Tourism Agent must undertake to use the booking form issued by them and have it signed by the client; and

d. in case of tours wholly organised by the Travel and Tourism Agent, or in case of providing additional services that are not included in the print material of the Outbound Tour Operators, the Travel and Tourism Agent must undertake to issue a booking form, which includes such services, in accordance with the booking form template prescribed by Article (2) of this Schedule. The Travel and Tourism Agent must also undertake to provide an insurance policy to cover the risks and damage that may result from providing these services or conducting these tours. The insurance policy must remain valid throughout the term of the Licence and for one (1) month after expiry of the Licence.

III. Special Requirements for Licensing Outbound Tour Operators:

An Outbound Tour Operator must:

1. undertake to publish print advertising materials within three (3) months from the date of issuance of the Licence;

2. provide a preliminary study on the project and its projected benefits for the tourism sector; and

3. undertake to issue a booking form, in accordance with the booking form template prescribed by Article (2) of this Schedule.

IV. Special Requirements for Licensing Inbound Tour Operators:

An Inbound Tour Operator must:

1. undertake to issue print advertising materials within three (3) months from the date of issuance of the Licence; and

2. provide a preliminary study on the project and its projected benefits for the tourism sector.

Article (2)

An Establishment conducting the activity of Appointed General Agent for Airline/ Airlines, or the activity of Travel and Tourism Agent must use the following booking form template:

1. Tourist Establishment/ Travel Agency Details:

- Name of the Establishment:

- Address:

- Phone:

- Fax:

- P.O. Box:

- Email Address:

- Emergency Contact Number:

2. Client Details:

- Full Name of Each Traveller:

- Emergency Contact Number:

- Fax:

- Email Address:

3. Tour/ Trip Costs:

- Total Cost:

- Advance Payment:

- Outstanding Amount and Due Date:

4. Booking Reference Number (computer-generated):

5. Holiday Brochure Reference:

6. Details of all Elements of the Tour/ Trip, including:

- Main Destination/ Destinations:

- Exit Point:

- Time and Date of Departure:

- Airline/ Name of Passenger Ship:

- Flight/ Voyage No.:

- Class:

- Duration of Holiday (Number of nights and days):

- Type of Accommodation (name and classification of the hotel establishment, or other alternatives):

- Number and Categories of Rooms:

- Meals arrangements:

- Optional Tours:

- Transport Services:

- Special Requests (not guaranteed):

7. Booking details and conditions, including cancellation fees and the conditions under which such fees apply to clients:

8. Stamp (or sticker) of the Travel and Tourism Agent or Appointed General Agent for Airline/ Airlines, and signature of the person in charge:

9. Client Signature (with the date and time):

Schedule (3)

Administrative Penalties

SN	Violation	Fine (in Dirhams) for first occurrence of violation	Fine (in Dirhams) for second occurrence of violation	Fine (in Dirhams) for third occurrence of violation	Fine (in Dirhams) for fourth occurrence of violation	Other penalties
1	Failure to produce the Licence upon demand by competent employees of the DTCM	200.00	200.00	200.00	200.00
2	Failure to abide by the tourist activity recorded in the Licence	1,000.00	2,000.00	2,000.00	2,000.00
3	Conducting a tourist activity without a Licence	5,000.00	10,000.00	10,000.00	10,000.00	Closure of the Establishment (optional)
4	Changing the place of business without notifying the DTCM	1,000.00	3,000.00	3,000.00	3,000.00
5	Using the place of business as residence	1,000.00	3,000.00	3,000.00	3,000.00
6	Advertising the lease/ sale of any Licences	1,000.00	1,000.00	1,000.00	1,000.00
7	Refusing to sign a violation/ warning/ summons notice	200.00	500.00	500.00	500.00
8	Failure to renew the Licence within one (1) month from the date of its expiry	1,000.00	1,000.00	1,000.00	1,000.00	Closure of the Establishment (optional) where the Licence is not renewed for more than six (6) months
9	Failure to maintain a name board of the Establishment	200.00	300.00	400.00	500.00
10	Providing false or incorrect information or documents to the DTCM	15,000.00	30,000.00	30,000.00	30,000.00	Reporting the matter to competent authorities (optional)
11	Disparity between the name of the Establishment on the name board and its name on the Licence	1,000.00	1,000.00	2,000.00	2,000.00	Obliging the Establishment to remove the name board
12	Failure to perform maintenance of the name board of the Establishment, or occurrence of any damage to the name board.	1,000.00	1,000.00	2,000.00	2,000.00	Obliging the Establishment to remove the name board
13	Failure to dedicate 50% of the size of the name board to the Arabic trade name	1,000.00	1,000.00	2,000.00	2,000.00	Obliging the Establishment to remove the name board
14	A typographical error on the name board	1,000.00	1,000.00	2,000.00	2,000.00	Obliging the Establishment to remove the name board
15	Failure to provide the DTCM with the required information/ documents/ statistics within the prescribed period	1,000.00	1,000.00	1,000.00	1,000.00
16	Failure to respond to a complaint filed with the DTMC against the Establishment within one (1) week from being notified thereof	1,000.00	1,000.00	1,000.00	1,000.00
17	Failure to equip the Establishment with an international reservations system that is compatible with the travel industry standards	1,000.00	2,000.00	3,000.00	4,000.00
18	Failure to provide a client with a copy of the booking form signed by both parties	2,000.00	3,000.00	4,000.00	5,000.00
19	Failure to retain the required number of employees	1,000.00	2,000.00	3,000.00	4,000.00
20	Failure to provide the required office space for each activity	1,000.00	2,000.00	3,000.00	4,000.00
21	Failure to provide a separate office space for each activity recorded in the Licence	1,000.00	2,000.00	3,000.00	4,000.00
22	Failure to use a booking form (in Arabic and English) in accordance with the prescribed form template	1,000.00	2,000.00	3,000.00	4,000.00
23	Non-compliance with the requirement to buy air tickets from an Appointed General Agent for Airline/ Airlines in the Emirate or from another Travel and Tourism Agent in the Emirate	3,000.00	4,000.00	5,000.00	6,000.00
24	Selling air tickets of airlines that are not represented by an Appointed General Agent for Airline/ Airlines in the Emirate	3,000.00	4,000.00	5,000.00	6,000.00
25	Providing incomplete or incorrect information about a tourist programme	5,000.00	10,000.00	20,000.00	20,000.00
26	Failure to perform one or more elements of a tour/ trip as stated in the print advertising materials or booking form, and refusing to refund the paid amounts to the client, where the client does not consent to any alteration or cancellation of the agreed tour/ trip programme.	5,000.00	10,000.00	20,000.00	20,000.00
27	Failure to maintain a display window	1,000.00	1,000.00	1,000.00	1,000.00
28	Non-compliance with the undertaking submitted for the purpose of issuance of the Licence	3,000.00	4,000.00	5,000.00	6,000.00	Closure of the Establishment (optional)
29	Failure to maintain a valid insurance policy	5,000.00	10,000.00	15,000.00	20,000.00
30	Failure by an Establishment, against which a decision is issued, to deposit an amount equal to that deducted from the bank guarantee within one (1) week from the date of deduction	1,000.00	3,000.00	5,000.00	10,000.00	Closure of the Establishment (optional)
31	Employees of the Establishment performing acts of unfair competition	3,000.00	5,000.00	10,000.00	10,000.00
32	Failure to display print materials about the offered tourism programmes	1,000.00	2,000.00	3,000.00	5,000.00
33	Non-compliance by an Establishment with the closure order issued by the DTCM	10,000.00	20,000.00	30,000.00	30,000.00	Closure of the Establishment (by the Director General or his assignee)
34	Unauthorised re-opening and operating of an Establishment in respect of which a closure order is issued by the DTCM	10,000.00	15,000.00	20,000.00	30,000.00	Re-closure of the Establishment
35	Obstructing the work of the DTCM employees	10,000.00	20,000.00	30,000.00	30,000.00	Closure of the Establishment (optional)
36	Failure to include all elements of the tour/ trip in the booking form	5,000.00	10,000.00	20,000.00	20,000.00
37	Non-compliance with one or more of the special requirements for the tourist activity	3,000.00	5,000.00	10,000.00	10,000.00

[1]Every effort has been made to produce an accurate and complete English version of this legislation. However, for the purpose of its interpretation and application, reference must be made to the original Arabic text. In case of conflict the Arabic text will prevail.