Alex Kyriakidis, president and managing director Marriott International MEA confirms that the group views the recent deal in a positive light, commenting: “We are pleased with the historic progress made regarding relations between Iran and the international community. At this time we do not have any hotels in Iran. However we will be watching carefully the status of trade sanctions.”
Rudi Jagersbacher, SVP Hilton MEA, echoed this cautious sentiment when he spoke at Arabian Travel Market 2015, commenting: “We would only operate if there’s the security and safety of our team members — if that’s not validated, we’re not moving anywhere.
“Also if there are any kind of restrictions from the US Government... then clearly we won’t be able to go into areas under restrictions, so at the time being there will be no entrance of Hilton to Iran.”
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Challenges such as instability are a real threat, and Paz Casal, travel research analyst at Euromonitor International highlights this, stating: “Despite recent improvements and developments in the sector, Iran’s critical involvement in the Syrian war using Hezbollah as its armed force in the country, as well as the ongoing tensions with Saudi Arabia and other regional and international powers, means that there is a lingering threat of violence and instability.
“Enmities between Shia and Sunni states and factions across the region are prevalent and more dangerous than ever before, threatening the state’s safety.
“In contrast, a number of regional markets are experiencing something of a tourism boom, including Dubai, Abu Dhabi, and also Oman and to some extent other, North African markets that can be considered as competition such as Morocco,” she adds.However, there is no doubt that recent developments will only enhance Iran’s economy as Ali Borhani, founder & CEO, Incubeemea reports: “The current contribution of travel and tourism to GDP is a mere 2.2% and this is while 1.9% of the total contribution to the workforce of the country comes from the sector.
“So the only way for Iran’s travel and tourism is up — if the right investment environment is provided, the real attractions of this market are communicated, and the developing relations between Iran and the world continue — without a doubt Iran can, in eight to 10 years, generate $28-30 billion from travel and tourism,” Borhani concludes.
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