The 2022 World Cup is turning out to be a massive event for the Middle East. With over 5 billion viewers worldwide, Qatar and neighboring regions like the UAE are expected to see an enormous influx of visitors and travelers.

In recent years, the UAE has made huge strides to develop a business-friendly travel destination for visitors of all ages and backgrounds. And with the month-long World Cup happening a few short miles away, residents of cities such as Abu Dhabi are planning to see a massive boon for their economy.

One area of the economy that will see reap the most benefits will be the hospitality industry. From hotels to eateries and even retail, travelers worldwide will see a significant uptick in their numbers.

Below, we’ll dive deeper into the FIFA World Cup, how it’s affecting Abu Dhabi, and how the hospitality industry is enjoying this world-class event.

The Hospitality Sector and the Cup

According to several sources, Abu Dhabi will see a 70% rise in bookings for 3-5 star hotels due to World Cup Visitors. Across the UAE, hotels are filling up for several days at a time and generating much greater rates per available room. Some 3-star hotels are achieving rates as high as $200 per night.

These thousands of visitors will not only fill hotels but will also enjoy retail stores, restaurants, and tourist attractions. As a result, each of these industries is seeing noticeable effects from World Cup visitors.

Hospitality in Abu Dhabi

From regional events to international gatherings, seminars, and conferences, Abu Dhabi sees its fair share of visitors in its own right. In a given year, the city’s hospitality sector contributes nearly 5% to the UAE GDP and is one of the fastest-growing markets in the nation.

A large part of this increase can be attributed to an influx of investors, entrepreneurs, and tourists traveling to the region for vacation and business. Another cause may be Abu Dhabi’s convenient location for numerous world-class events and destinations. Traveling here provides a fantastic diving board for a wide range of business and leisure opportunities.

The World Cup

With the World Cup already in motion, millions of fans across the world will have their eyes firmly planted on Qatar. But despite this city being the epicenter of festivities, other surrounding regions are also reaping the benefits. After all, cities such as Abu Dhabi and Dubai are near the World Cup. And with easy access to transportation and international airports, it’s never been easier for football fans around the world to celebrate. In fact, a trip from Dubai to Qatar is a mere 45-minute flight!

“Sports events act as a catalyst and can have a tremendous impact on the economy,” according to the chief executive of Musafir Business Sachin Gadoya. And nowhere is this sentiment more accurate than the World Cup. This multicultural sport bears almost as many secondary financial benefits as the Olympic games.

Forming a Hospitality Business in Abu Dhabi

You’ll need to acquire a business license to own and operate a hospitality business in Abu Dhabi. This licensing is presided over by Abu Dhabi Tourism Authority (ADTA) and is designed to be an easy, stress-free process. However, when you submit your application, you’ll be required to undertake several steps to ensure the process goes smoothly.

1. Choose a Trade Name and Apply for Initial Approval

Your hospitality business will need a name! You’ll need to submit a trade name request to the relevant government authority, ensuring that the name is not already used and does not violate rules regarding profanity.

After this is completed, you’ll want to apply for initial approval. This process ensures that your business is in good standing with government authorities and that you have an existing structure or plans to create one. Once you’ve received approval, you will be free to complete the remainder of your application.

2. Gather Documentation and Submit an Application for Tourism License Certificate

Your next step will be to gather the necessary documentation, such as:

• Copies of passports for all partners and shareholders
• Copies of visas for all involved parties
• Memorandum of Association
• Articles of Association

Once you’ve gathered these documents, you’ll want to submit them with your completed application form.

3. Pay Fees and Receive Licensing

Once you’ve allowed enough time for processing, you’ll need to pay the required fees to receive your hospitality license.

4. Operational Approval

The final part of forming a hospitality business in the UAE will be to secure operational approval. This will require an inspection by the ADTA to determine whether the company is ready to open. Once completed, you will be free to reap the benefits of your new hospitality business.

FAQs About Abu Dhabi Hospitality

Do you have questions about how the World Cup is changing the landscape of hospitality? If you’re a prospective investor, it may be lucrative to have answers to frequently asked questions about Abu Dhabi’s hospitality industry.

1. What is the GDP contribution of the hotel sector in Abu Dhabi?

Abu Dhabi’s hospitality sector is estimated to contribute to almost 4.8% of the nation’s GDP.

2. What is the estimated number of visitors to the FIFA World Cup in Qatar?

Kicking off in November, Qatar is predicted to see roughly 1.5 million travelers visit the region for the World Cup.

3. What is the expected occupancy for the Abu Dhabi hotels?

Many Abu Dhabi hotels are recording 100% occupancy as a result of the World Cup events.

4. How did the FIFA 2022 event help the Middle East?

The FIFA World Cup has brought in fans and travelers from around the globe, galvanizing earnings for airlines, restaurants, stores, hotels, and tourist attractions.

5. How much is Dubai hospitality affected by the World Cup?

It’s estimated that the World Cup events in Qatar will increase overall hospitality by a minimum of 10% by the end of 2022.

Interested in Hospitality Business in UAE? Call MSZ Consultancy!

MSZ Consultancy is proud to deliver fantastic results for investors and entrepreneurs hoping to maximize their business potential in the UAE. Whether you’re managing a hospitality business in Dubai, UAE, or handling critical visa applications, we have the experience to help!

Are you needing help handling licensing? We can make the process straightforward and hassle-free. Do you want assistance with securing the support of PRO services? We do that as well! No matter how big or small your business is, our skilled hospitality consultants can help you navigate the ins and outs of UAE investing.

So, if you want to start a new hospitality company or just need help handling the day-to-day tasks of your current business, MSZ Consultancy can help! Give us a call at +971 52 544 1248, and let us provide you with a quote on how we can change the landscape of your investments.

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