The World Travel and Tourism Council has published the latest figures on Iran's tourism industry by province. This council, with the short name WTTC, has been active for thirty years in providing statistics and information on the tourism industry. WTTC was created by the chief executives of the large firms in this industry. Its main concern was the shortage of information and awareness among Iran's tourism-industry actors and governments about tourism.
The focus of this council's new brief report on Iran's tourism industry is the year 2022. This report, as one-year and ten-year forecasts, also looks to 2023 and 2033. The year 2019 has also been examined as the pre-coronavirus year so that it is possible to compare conditions before and after the coronavirus.
Overall, in 2022 the tourism industry's share of the entire global economy was 7.6 percent. The number of employees in this industry also reaches 295 million people. This figure will become 430 million people ten years from now. One of the most interesting parts of this report concerns the figures on inbound tourists to Iran and Iran's outbound tourists.
Figures on inbound tourists to Iran
Iraq is at the top of the countries that send tourists to Iran. In 2022 this country's share of all foreign tourists in Iran is 55 percent. This figure is about 10 percent higher than the share of Iraqi tourists in 2019. On this basis, the share of Iraqis' travel to the country of all inbound trips to Iran is increasing.
One reason for this may be the decline in the value of Iran's currency and the cost-effectiveness of travel and shopping in Iran. Iran's pilgrimage cities such as holy Mashhad and Qom, and also sightseeing regions such as the northern provinces, are also highly attractive for the people of Iraq. Health tourism too is one of Iran's attractions for the countries of the region.
After Iraq, the Republic of Azerbaijan has the largest share of the figures on foreign tourists to Iran. Turkey and Pakistan also stand in the next ranks. The only change this list has had relative to 2019 is Kuwait replacing Armenia. Also, in the volume of foreign tourist arrivals to Iran from other parts of the world there is no difference between 2022 and 2019.
Which countries Iranians travel to most
Iranians' first foreign tourism destination, by a very large margin, has been Turkey. After Turkey, the best Arab country for travel is Iraq, with a 13 percent share. That is, less than one-fourth of Turkey's travelers. Travel to Turkey, the best country for Iranians' recreation, is a nearby destination for shopping and leisure. Travel to Iraq is also the most important pilgrimage destination of the people of Iran, especially during the Arbaeen pilgrimage.
The share of Iranians' travel to Turkey of the figures on Iranians' travel abroad has increased by about 20 percent relative to three years ago. This is while the share of travel to Iraq has faced a seven percent decline. The decline in the value of the Turkish lira can perhaps be considered effective in the increase in the share of people's travel to this country. Iranians' travel to the UAE has also increased. But what draws attention is the decline in Iranian tourists' travel to other parts of the world.
How much do foreign tourists spend in Iran?
According to the wttc report, in 2019 foreign tourists in Iran spent close to 17 billion dollars. In 2022, spending by inbound tourists to Iran declined 63 percent and reached about 6 billion dollars. It is forecast that in 2033 the amount of spending by foreign tourists in Iran will reach 21 billion dollars. These figures are without considering inflation and the dollar-to-rial ratio.
Essentially, the aforementioned figures and forecasts are not very encouraging for Iran's tourism industry. Iran's need for the inflow of foreign capital on the one hand, and Iran's diverse capacities in this industry, require that the number of inbound tourists, the multiplicity and diversity of tourists, and the amount of their spending increase. These figures are a view of the overall state of Iran's inbound tourism, which still appears frail.
How much do Iranian tourists spend in Iran?
The amount of spending by Iran's domestic tourists is much greater than the spending of European tourists in Iran. In 2019 Iranian tourists spent 300 thousand billion tomans (300 hemt) on their domestic trips. This figure in 2022 faced 3 percent growth. It is forecast that in the next 10 years this amount will reach nearly 600 hemt, roughly equivalent to 13 billion dollars.
As is clear, Iran's greatest tourism revenue comes from spending by domestic tourists. By improving tourism infrastructure, even the revenue from domestic tourism can be increased. Also, with greater attention to industries such as health tourism, foreigners from the countries of West Asia can be drawn toward Iran's treatment and medical centers.
The effect of coronavirus on the tourism industry labor market
In 2019 close to two million people were employed in jobs related to Iran's tourism industry. This amount is equal to 8 percent of all of the country's employed. With the emergence of the coronavirus, this figure declined 33 percent. Through 2023 it also does not return to its pre-coronavirus level.
It is forecast that over the next ten years the number of people employed in travel-related jobs in Iran will remain at two million people. This forecast clearly reports the stagnation and standstill of an industry that can be a springboard for Iran's economy and culture.
Figures on inbound tourists to Iran in 1402 (2023/24)
Ezzatollah Zarghami, Minister of Cultural Heritage, Tourism and Handicrafts, announced the figure for foreign tourist arrivals to Iran in the first two months of 1402 (2023/24) as 850 thousand people. According to him, this figure has increased 55 percent relative to the first two months of 1401 (2022/23). Also, the figure for foreign tourists to Iran in Khordad (May–June) 1402 (2023/24) was 550 thousand people. This is while the Republic of Azerbaijan, as one of the most important countries that had the most inbound tourists to Iran, had closed its land borders with Iran.
Closing remarks
The World Tourism Organization, as a credible center for providing information on the tourism industry, has presented its latest report on Iran's tourism industry. According to this report, Iran's tourism revenue in 1400 (2021/22) and 1402 (2023/24), equivalent to 2022 CE, had about 300 hemt from tourist spending. This figure is roughly equivalent to the pre-coronavirus period. But the number of people employed in jobs related to the tourism industry in Iran has declined as a result of coronavirus. According to forecasts, Iran's tourism, both in terms of the number of employed and the tourism industry labor market and in terms of spending by Iran's foreign and domestic tourists, will not have much growth. This is while the capacity to create a leap in the place of the tourism industry in Iran is available.
Sources
- World Travel and Tourism Council report: IRAN: 2023 Annual Research: Key Highlights
- Ezzatollah Zarghami in an interview with Kayhan / news code: 268017
Machine-translated from Persian by Namafar; the Persian original is authoritative. Read the original in Persian