“According to industry sources, the number of tourists (business and leisure) visiting Iran has increased by almost three times during the last 12 months. Interestingly, at the same time the number of European tourists visiting Iran increased by 240%.
“This has definitely given a boost to hotel occupancy and RevPAR/ ADR. Tehran is definitely a key business destination and the hub of all political activity. But there are many other tourist attractions, such as Esfahan, Persepolis, Mashhad and Shiraz.”
And it’s not just regional and international chains eying up the destination. Existing hotels in-market, such as the Tehran Grand Hotels Group, is optimistic about the future. Managing director, Farman Ghaffarian, sums up the current state of affairs with respect to his industry: “Religious tourism has grown within the past two decades since some of Shia’s most respected religious sites are in Iran, such as Imam Reza in Mashhad.
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“Recently, there has been growth in health tourism, which is an emerging market, due to the outstanding medical knowledge available and price competition. More than 1000 key tourist destinations have been pinpointed throughout the country, but cities like Tehran, Mashhad, Isfahan, Shiraz and Yazd are in the front line. Many are motivated and determined to invest and expand. In the city of Tehran alone, more than 40 hotel project licenses have been issued, of which some already have begun construction and some are near opening, from luxury to budget.”
However, while many locally-based hotel groups are fully invested in capitalising on the recent agreement, Iran as a destination is not without its challenges, with some large international players proceeding more cautiously.
“AccorHotels does not, at present, have any management agreements in place in Iran,” reports Christophe Landais, CEO, AccorHotels Middle East, “however we are considering a number of potential opportunities across a broad range of segments. AccorHotels can confirm that it is in advanced negotiations regarding management agreements for two properties in Tehran under our ibis and Novotel brands.”
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