Tourism in Iran

Challenges, Development and Issues

Siamak Seyfi, C. Michael Hall

• Publisher: Routledge
• Year: 2018
• Print ISBN: 9781138505124
• eBook ISBN: 9781351379779
• Edition: 1
• Topic: Business
• Subtopic: Hospitality, Travel & Tourism Industry
• Index: Business

Iran has long been regarded as an international pariah state in some parts of the international community. However, its negative image in many countries disguises its history of tourism and rich cultural and natural heritage. Following the July 2015 nuclear deal and the reduction in sanctions, Iran is focusing on international tourism as a means to generate economic growth in addition to its substantial domestic tourism market. Given the significance of tourism in the Middle East and in international politics, as well as restrictions on international mobility, this volume brings together the first contemporary collection of research on tourism in Iran.

Written by experts based both within and outside of Iran, the chapters engage with a number of crucial issues including the importance of religion, the role of women in society, sustaining Iran's cultural heritage, Iran's image and the resistive economy to provide a benchmark assessment of tourism and its potential future in a troubled political environment. The book will undoubtedly be of interest not only to those readers who focus specifically on Iran but also those who seek a wider understanding of Iran's role in the region and how tourism is utilised as part of national and regional economic development policies.

1Part I

Context2

31 Tourism in Iran: an introduction

Siamak Seyfi and C. Michael Hall

Introduction

Tourism generated US$1.220 billion in revenue worldwide in 2016, and tourism arrivals had continued their long upward trend to reach 1.235 billion. This number is projected to reach 1.8 billion arrivals by 2030 (UNWTO, 2017). Thus, tourism is considered as one of the main engines of development for all countries at very different stages of development and is receiving vital focus in all geographical regions of the world (Hall & Page, 2017). Despite this global trend, however, the Middle East region has failed to capitalize on its resources to reap the benefits of international tourism and this region’s share of the pie remained one of the lowest in the world estimated at about only 4% (UNWTO, 2017). Consequently, the region as a whole remains one of the world’s least developed tourism regions (Hazbun, 2004, 2008; Morakabati, 2011, 2013; Cohen & Cohen, 2015; Isaac, Hall, & Higgins-Desbiolles, 2015). The image of the Middle East is one that has been portrayed as a theatre of war and conflict, from the Arab–Israeli conflicts to the more recent war against Islamic extremists in Syria and Iraq, Syria’s civil war, Turkish aggression against the Kurds, Saudi Arabian-led intervention in Yemen, and the nuclear issues in Iran. This long history of political instability along with ongoing security events and crises has negatively affected the development of tourism in the Middle East despite its vast natural, historical, and cultural resources as well as its abundant collection of unique tourist sites, diverse climate, exotic food, and hospitable hosts (Mansfeld, 1999; Bassil, 2014; Isaac, 2013; Morakabati, 2011, 2013). Hence, all these issues have presented significant challenges to the inbound flows of international tourism to the region.

The recent ‘Arab Spring’ with its new round of regional leadership competition and the advent of Islamic radical groups has also had significant negative impacts on the tourism industry in the Middle East (Avraham, 2015; Tomazos, 2017). Although Iran is classified as being in the South Asia region by the World Tourism Organization (UNWTO, 2017; Hall & Page, 2017), it is primarily covered as a Middle Eastern country in the international media (Ebadi, 2017). Iran has a strong geopolitical presence in the Middle East with longstanding tensions and rivalry and mistrust between Sunni countries under the leadership of Saudi Arabia and 4Shia countries such as Iran (Zamani-Farahani, 2010). This centuries-old sectarian rivalry between Sunni and Shia Islam is embedded in the regional politics of both Iran and Saudi Arabia as they compete for leadership in the Islamic world. This competition has been extended into the internal politics of other Arab states (Hinnebusch, 2010) and is one of the key factors defining the Middle East security complex today with significant implications for tourism.

With respect to Iran, given its vastness of tourism, its complicated institutional set up along with its highly centralized and bureaucratic development model, and paucity of reliable data as well as lack of awareness of tourism per se, researching tourism development in this country has been a difficult task (Alipour & Heydari, 2005). Therefore, Iran’s tourism has remained one of the least studied sectors so far and has a very limited coverage in the international tourism literature (Seyfi, Hall, & Kuhzadi, 2018). Furthermore, with regard to domestic policy, encouraging tourism in Iran has become a hotly debated issue between two main political factions in the ruling elite (Alipour & Heydari, 2005). The Reformists view tourism as a driver for job creation, economic growth, and development as well as a means to modernize and promote international links, whereas the Fundamentalists and conservative clerical establishments considers tourism as a means of globalization and a threat which undermines the ‘soul’ of Islamic values and norms (Alipour & Heydari, 2005; Morakabati, 2011; Zamani-Farahani, 2010). While the Reformists and moderate groups believe in establishing friendly relations with the West, creating a conductive political and social atmosphere for foreign investment and promoting inbound tourism mainly from main tourism-generating countries, the hard-liners and conservatives tend toward an isolationist strategy in foreign policy and reject foreign investment, and are suspicious toward foreign tourists. The latter group fears the erosion of religious devoutness and conventions, and shows little demonstration of interest in hosting foreign tourists, especially non-Muslims (O’Gorman, McLellan, & Baum, 2007; Baum & O’Gorman, 2010; Butler, O’Gorman, & Prentice, 2012; Morakabati, 2011). Thus, despite the country’s untapped potentials (e.g. ancient and historical sites, coastal areas, mountains, deserts), the tourism industry has been either ignored or given little attention, and experienced a tremendous setback due to the upheavals of the 1970s, the Iran–Iraq war of the 1980s, and a range of political instabilities and changes in different administrations’ ideologies (Alipour & Heydari, 2005; Seyfi et al., 2018). Moreover, lack of a formidable and stable tourism organization with a long-term strategy, along with an ad hoc approach to the sector, and heavy dependence on the lucrative oil and gas sector (which accounts for around 80% of the government’s total export earnings and 60–75% of its total budget) have curtailed such a promising sector. Iran has therefore failed to capitalize on its resources to reap the benefits of international tourism, and its share of the world’s tourist receipts remained as one of the lowest in the world, as low as 0.003% for the year 2016 (UNWTO, 2017).

After a decade of a tension and antagonism with the West and a crippled economy as a result of sanctions during Ahmadinejad’s presidency (2005–2013), known as the ‘new conservative era’ in the political discourse of the country (Ehteshami & Zweiri, 2007), a moderate president took office in 2013. In the wake of the nuclear agreement of 2015 and the subsequent easing of sanctions and reconnection to the world, a new chapter opened in the contemporary history of the country and Iran is viewed as the world’s biggest emerging economy to rejoin the global trading system since the collapse of the Soviet Union over two decades ago (McSmith, 2016). As a result, Iran, which had long been avoided by international tourists, became a booming destination (Khodadadi, 2016a, 2016b). More than 5 million inbound tourists visited Iran in 2017, nearly three times the number in 2009, according to official data (Figure 1.1) (ICHTO, 2018; UNWTO, 2017). A similar such surge in tourism to the Islamic Republic is also thought to have occurred after the victory of reformist president Mohammad Khatami in the late 1990s. Tourism is the core of attention of Rouhani’s administration which has called for its revival, which could create jobs for millions of young Iranians at a time when youth unemployment remains stubbornly high at 26% (Mozaffari, Karimian, & Mousavi, 2017; Pratt & Alizadeh, 2017).

Figure 1.1 Inbound tourism to Iran.

Source: ICHTO, 2018; UNWTO, 2017.

5In light of this easing of sanctions, European airlines such as Air France, British Airways, and Lufthansa, and regional airlines, such as Air Asia, resumed direct flights to the country. The Iranian authorities also relaxed visa requirements and updated a part of its aging air fleet by ordering nearly 200 planes from Airbus, Boeing, and ATR, worth $36 billion (Khodadadi, 2018; Seyfi et al., 2018). Following the easing of sanctions, Iran has managed to attract considerable investment in tourism-related infrastructure (Khodadadi, 2018). For instance, in light of skyrocketing demand for accommodation, foreign investors such as French group 6Accor Hotels, UAE-based Rotana, Spanish Meliá, and other Turkish and German companies have invested in the country’s hotel sector (Khodadadi, 2016c). Iran has also made significant investment in rail transport by working with the Italian state rail company to build a high-speed train between major cities inside the country which will have significant implications for domestic mobility (see also Chapter 2, this volume).

This introductory chapter provides a comprehensive introduction to tourism in Iran and the challenges it faced before, and faces post, the lifting of sanctions and given relations with the United States as well as countries in the surrounding region. It also outlines the growth and history of tourism in Iran, and identifies key tourism related issues and challenges in the country with links to the chapters in the book. These issues and their respective implications for the tourism industry in Iran will set the context for the book. The chapter ends with a brief overview of the organization of the book.

An overview of tourism in Iran

Tourism resources of Iran

In Persian literature, Iran (meaning ‘land of the Aryans’) has been the title of the country since the Sassanid era (also known as the Neo-Persian Empire) (224–651 BC) and became the official international title for the country in 1935 (Yarshater, 1989). In Western countries, Iran had been traditionally known as Persia until 1935 or as a ‘combination of Persia and Islam’ (Baum & O’Gorman, 2010, p. 175). While Iran is classified as being in the South Asia region by the World Tourism Organization (UNWTO, 2017; Hall & Page, 2017), it is being mostly covered as a Middle Eastern country in the international media (Ebadi, 2017). It occupies an area of 1,648,195 km² (636,372 miles²) and is regarded as the second largest country in the Middle East and the seventeenth largest in the world (World Bank, 2018). It is inhabited by over 81 million people and is the world’s eighteenth most populous country (Statistical Center of Iran (SCI), 2018).

Iran, which was a Zoroastrian country before the conquest by the Arab armies of the early Islamic state in the seventh century (Katouzian, 2010) is home to one of the world’s oldest civilizations and incredible antiquities, and is a treasure trove of medieval and pre-Islamic architecture with ancient ruins, glittering mosques, and spectacular landscapes (Alavi & Yasin, 2000; O’Gorman et al., 2007; Baum & O’Gorman, 2010). Historically, Iran has had a strategic location along the Silk Route between the Ottoman and Mughal empires. This ancient route “is one of the best known of the world’s historical trading routes, traditionally running from Xian in Northern China through Iran and on to Istanbul” (O’Gorman, 2009, p. 785). Throughout history Iran has been of geostrategic importance owing to its central location in Eurasia (Ghirshman, 1951), and its abundant natural resources, especially petroleum, are a factor in colonial and superpower rivalries. Following the occupation of Iran by the Islamic armies coming out of Arabia in the seventh century (known as the Muslim conquest of Persia or the Arab 7conquest of Iran), Zoroastrian, a monotheistic religion with its long history and association with Persian history, heritage, and culture was substantially replaced by Islam. Another major change with respect to the religion in Iran came during the Safavid period (1502–1736), when Shia Islam was recognized and established as the official religion of the country (Pierret, 2017).

Iran is not an Arab country (Almuhrzi, Alriyami, & Scott, 2017) yet it is often perceived as such given its situation in the Middle East. This misperception, however, may be a reflection of the Islamic regime’s failure to generate a strong positive country image (Jalilvand & Samiei, 2012) and potentially renders the country remaining relatively less explored by the outside world. Whereas Islam is the main religion in many Arab and non-Arab societies (i.e. Persian, Turkish, Kurdish society), these societies are neither identical (Hourani, 1992) nor have many cultural similarities with respect to the lifestyle, and social norms and customs (Hourani, 1992; Almuhrzi et al., 2017). Despite the invasion by the Arabs and some initial efforts to impose the Arabic language, the Iranians did not lose their language or their identity. In fact, the failure of the clerical elite of Iran in keeping Iranian youth under Islam has led to many Iranians referring to themselves as being Persian rather than Muslim-Iranian and tending to trace their heritage back to the time of Cyrus the Great (the founder of the Achaemenid Empire, the first Persian Empire between 559–530 BC) despite Iran’s clerical establishment’s continued efforts to emphasize the religious-Islamic component of Iranian identity and downplaying the nation’s pre-Islamic history (Baum & O’Gorman, 2010).

The landscape of Iran is dominated by the Alborz and Zagros mount...

Table of contents

• Cover
• Title Page
• Half Title
• Copyright Page
• Contents
• List of figures
• List of tables
• List of boxes
• List of contributors
• Preface and acknowledgements
• List of abbreviations
• PART I: Context
• PART II: Pilgrimage and religious tourism
• PART III: Heritage and tourism
• PART IV: Emerging tourisms
• Index