Iran: the next tourism gold rush?

The nuclear agreement and the loosening of Western sanctions are generating expectations of a tourism gold rush in Iran. As travel destination, the country offers lots of cultural experiences which could soon be revealed to many more international travellers.

The city of Kashan, Iran at sunset
The city of Kashan, Iran at sunset

The hotel market there, however, requires significant extensions and new buildings. The capital Tehran currently supplies only 96 hotels. In comparison, Dubai offers 657 properties. According to TOPHOTELPROJECTS, a provider of B2B hotel data, only five new hotels are in the pipeline, all by the Rotana hotel chain. However, this might change soon.

Last year, only 4.8 million tourists travelled to Iran. According to surveys by TRI Consulting, the occupancy rate of top hotels in Tehran was at 79 percent, with an average room rate of $US108 and a RevPAR (revenue per available room) of $US85.

Hotel experts are now predicting an increase in business travel, led by delegations of company representatives accompanied by the Western world’s Ministers of Economics. Modern hotel concepts are in great demand, especially in the higher segments. Currently, half of all overnight stays in Tehran are generated by business travellers.

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The majority of inbound overnight stays in Iran have been motivated by religious reasons. But these days more and more Western, culturally interested tourists are visiting the country with its 17 UNESCO World Heritage sites. The international hospitality and tourism consulting company Horwath HTL is predicting a tourism boom in Iran as the “next big thing”.

A new passenger train, which will shuttle between Budapest and Tehran starting this autumn, promises a luxurious journey to the jewels of Persia. The “Golden Eagle Luxury Trains” will show the panoramas of the Orient and Occident in 15 days for about 13,000 Euros per person

Source: TOPHOTELPROJEFCTS

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