Out of all the climates present on our planet, only a few countries have the majority of possible geographical and climate conditions. Turkey has three, Iran has four, and America has five different climates. In the world, there are also five diverse climates. In addition, Iran and America have 24 UNESCO World Heritage sites, while Turkey has 16. Iran is also likely a more suitable place for religious tourism compared to America or Turkey. It’s better not to even talk about the historical capacities. Another one of our neighbors is the United Arab Emirates, which only has one climate, which is desert. In the UAE, it’s either winter or summer, and the country only has one UNESCO World Heritage site. However, the UAE receives 16 million tourists annually and has a revenue of 38 billion dollars.

The main question here is why our country, with its incredible facilities and capacities for tourism, has fallen behind? To answer this question and other questions in this field, we sat down with Dr. Mohammad Ali Shadi, a university professor, entrepreneur, and CEO of the Iranian Tourism Specialists Research and Studies Institute.

According to existing statistics, Iran’s share of global tourism is estimated to be less than half a percent. What obstacles and problems have prevented tourism from developing in Iran, considering the country’s historical and touristic attractions?

As you know, the tourist attractions of our country are incredibly unique and Iran is among the top 10 countries in the world in attracting tourists. This is because nowhere else in the world can you find such a diverse climate with four seasons and a variety of tourism, including the use of deserts, forests, ancient 7,000-year-old monuments, and more, as you can in Iran. However, unfortunately, we have never fully utilized tourism. In this regard, there have been numerous obstacles and problems that have hindered the development of tourism in the country. I believe that tourism is not only an industry, but also a business and a culture.

Obstacles to tourism development on a large scale include political, social, and cultural constraints that have hindered the tourism industry. Tourism is a rapidly growing industry worldwide, which plays a significant role in the economic development of countries. Different countries are trying to promote tourism by offering various facilities. The problems and obstacles to tourism development from a macro perspective include various political, economic, and cultural factors.

Political barriers are considered the first and perhaps the most influential obstacles to the development of the tourism industry. This is because the overall performance of all sectors is directly and indirectly affected by the policies and macro-strategies of a country.

International sanctions and challenges with the West, negative propaganda against Iran, state and institutional management of the tourism industry, state and institutional control of most hotels, dependence of airlines on the government, and lack of security for tourists due to political tensions are among the factors considered.

Economic barriers in tourism, which planning for their identification is of great importance, include factors such as the obsolescence of transportation industry and its mismatch with needs, inability to reserve hotels and purchase tickets, lack of suitable banking transactions with the global banking system, inadequate government investments for creating necessary infrastructure and platforms, and lack of necessary infrastructure for tourism development.

In addition to political and economic barriers, social and cultural barriers also play a significant role in the underdevelopment of the tourism industry in the country. In the current circumstances, it seems that the general culture of the country is not welcoming to foreign tourists. Excessive hospitality and intrusive behavior, as well as mistreatment and harassment of tourists in secret, are an undeniable reality. Disregard for social order and laws, the presence of Islamic laws in Iran that require tourists to dress modestly and refrain from certain activities, the lack of cultural events such as theaters, festivals, and celebrations, and behaviors that are contrary to attracting tourists by the people are among the cultural and social barriers to the development of tourism.

According to official documents, it has been decided that in accordance with the 20-year tourism development plan and the seventh development program, $25 billion in revenue will be generated from the tourism sector. This is while the current revenue from our country’s tourism sector is only one-fourth of this amount in the best conditions. What are the problems in planning or implementing the provisions of development documents?

The legal provisions and regulations of the Seventh Development Plan in the tourism sector do not differ significantly from the Sixth Development Plan and previous plans. All the provisions and incentives are similar to previous plans. With this description, I believe that if we proceed with such a plan, we will not reach 10 million tourists, let alone 15 million. In the Seventh Development Plan, there are no new and encouraging incentives and exemptions for tourism in the tax sector. The tax exemptions and incentives are the same as before, which our demand as the private sector was to reform and improve them. Furthermore, there is no defined advertising strategy to attract tourists and no clear guidelines on how to attract foreign tourists or improve and develop tourism infrastructure. For other organizations, ministries, and institutions involved in tourism, no provisions have been considered. Some articles of this bill have taken some powers from the Ministry of Cultural Heritage, Tourism, and Handicrafts.

The seventh development plan in the tourism sector is weak and it is not clear on what basis the number of 15 million foreign tourists has been determined. How can we, as private sector and tourism executives, be expected to implement this plan when we have not been consulted? Especially when no solutions have been predicted for the small and large problems in tourism. Currently, the tourists who travel to Iran and the statistics that are announced have no connection to the government’s plans and actions. While it is the government’s duty to facilitate and supervise, they should say in which foreign media Iran is being advertised, how much is the budget for tourism advertising, and what advertising measures have been taken to promote Iran and attract tourists? It is not clear which approach the country’s tourism development plan is emphasizing and whether the ideal future is based on statistics and estimates or on domestic tourism, which remains immeasurable.

The 20-year vision document, approved on December 14, 2004 by the former government, states that Iran should allocate 1.5% of the world’s tourist share by 2025 and increase the 0.7% income from foreign tourists in 2004 to 2% by the end of the program, in order to earn approximately 25 billion dollars from foreign tourist arrivals in 2025. The 20-year vision document had set targets for four five-year periods, and according to these targets, from 2005 to 2025, Iran’s tourism industry needed to grow at an annual rate of 30% and gradually increase the number of tourist arrivals to 15 million with a total income of 25 billion dollars by the end of the program.

What are the benefits of tourism for countries and why should the tourism economy be taken seriously?

Tourism is a social, cultural, and economic phenomenon that leads to the movement of people to countries or places outside of their usual living environment for personal or business purposes. We have all probably experienced being a tourist at some point in our lives, with a small-scale trip of at least one day. Despite our widespread understanding of this concept, defining tourism is not a simple task. Today, in most developed countries, we witness the growth of tourism alongside the economic growth of these countries. In fact, these two sectors are necessary and complementary to each other. In today’s world, many countries facing limited financial resources have placed the income from tourism as one of their main sources of foreign income. It is obvious that with the potential and valuable resources of tourism, we can also look at different sectors of this industry as a source of income. Economic growth and a higher standard of living will also guarantee the growth of tourism activity. The movement towards expanding this cycle can lead to the further development of these countries

It should be noted that tourism creates a significant amount of employment and is one of the largest invisible exports in the world. Tourist attractions, in terms of natural, cultural, historical, religious, and health resources, have great potential in attracting tourists. With proper investment in the software and hardware sectors of this industry, and maintaining competitive advantages globally, billions of dollars can be earned from this sector. The important point to consider is that compared to other industries, tourism requires less investment in terms of income and foreign resources, and yields more benefits and income for governments. In addition, the speed of job creation in the tourism sector is about 2.5 times that of other sectors of the economy. The number of Iranians employed in the tourism sector has increased by nearly 92% in the past two decades. In the early 1980s, there were 900,000 people employed in this sector, and this number reached 1,730,000 in 2019.

Tourism and handicrafts are sectors with a wide chain of businesses and industries that have great potential for generating income and employment. The growth of this industry is accompanied by the growth of related industries such as transportation, accommodation, food, and handicrafts. Therefore, tourism is considered as a driving force for the country’s infrastructure and income-generating sectors, which in turn drives other economic sectors. There are few sectors in the economy that can play a driving and stimulating role, such as the housing sector, which has extensive links with various industries and businesses. However, unlike tourism, the housing sector requires a significant amount of investment and its complex structure and the presence of various factors in its management may not meet the economic goals according to the desires of policymakers. But unlike the housing sector, tourism does not have such structural and institutional complexities, making it easier for governments to achieve their goals. For the economy of Iran, which is currently facing a recession, the tourism sector is a unique opportunity that

As a final remark, what is the potential of tourism economy in Iran for generating income and can it serve as a driving force to lift Iran’s economy out of recession and inflationary conditions?

The World Economic Forum has announced in a report that Iran is the most competitive country in the world in terms of tourism prices. Industrial tourism is a highly profitable and low-cost industry that can yield multiple outputs with a small investment and expense. In terms of job creation, the tourism sector also has a special advantage, as it can create employment faster than any other sector. Therefore, tourism can be considered as a driving force in Iran’s economy, as it will be the most important sector in terms of its contribution to the gross domestic product, particularly in the services sector, with strong backward and forward linkages to tourism.

The number of tourists in Iran is very low compared to the country’s capacities. For example, in 1398, 8.5 million foreign tourists visited Iran. Turkey has over 50 million annual tourists and the UAE has close to 17 million tourists. By comparing Iran to neighboring and non-neighboring countries, it is easy to understand that Iran is lagging behind in the tourism industry. Additionally, Iran’s share of tourism is only 6 billion dollars, which is insignificant. By the way, Iran’s oil revenue was also 8 billion dollars in that year.

According to the WTTC (World Travel and Tourism Council) report in 2019, foreign tourists spent nearly $17 billion in Iran. In 2022, the cost of inbound tourists to Iran has decreased by 63% and reached about $6 billion. If we look at the amount of oil sales in the past year, we will find that there is not much difference in the country’s income from tourism. It is predicted that in 2033, the cost of foreign tourists in Iran will reach $21 billion. These figures do not take into account inflation and the exchange rate of dollars to rials.

Basically, the mentioned statistics and predictions are not very promising for the tourism industry in Iran. The need for foreign investment on one hand and the various capacities of Iran in this industry on the other hand, necessitates an increase in the number of incoming tourists, diversity and variety of tourists, and their spending. These figures reflect the overall situation of foreign tourism in Iran, which still seems weak.

Thank you for the opportunity you have provided in the peace talks.