DTCM promotes holiday home concept
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The Department of Tourism and Commerce Marketing (DTCM) recently announced that it is looking at receiving applications for licenses to become an operator of holiday homes.
The announcement follows the December 2013 issuance of Decree No 41 of 2013, concerning regulation of the ‘holiday homes market’, by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE vice president and prime minister and ruler of Dubai.
From 15 June 2014, operating of residential properties for use as holiday homes will be restricted to licensed operators.
The first phase of applications is restricted to entities which intend to be an operator of a portfolio of properties. This will be with minimum number of properties within the portfolio being 20. Home owners who wish to rent out their property as a holiday home will be required to use services of a licensed operator, with their property becoming part of the operator’s portfolio.
Khalid bin Touq, executive director of licensing and classification, DTCM said: “Through regulating use of properties as holiday accommodation, the objective is to broaden range of options available to visitors, while ensuring that high standards of quality for which Dubai is known, are maintained. Visitors booking their accommodation through licensed operators will have assurance that accommodation they are booking has been classified in line with global best practices, while owners of properties will benefit from the expertise and marketing capabilities of the operator through who they rent out their property.”
The first stage of the trade license application process is to apply for an Initial Approval. Upon successfully receiving the Initial Approval, the applicant will have a maximum of three months in which to satisfy the requirements for the final license and consequently become a licensed operator.
A Holiday Home is classified as a furnished accommodation which is rented as a whole unit on a daily, weekly, monthly or annual basis without issuance of an EJARI regulated tenancy agreement and should be registered with DTCM.
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