Iran unveils funding agreement to boost tourism infrastructure, investment
The Iranian government is positioning itself as a facilitator for investment in the tourism sector, emphasizing the need for collaboration among banks to complete key tourism projects.
To this end, a memorandum of understanding was signed to provide funding from the National Development Fund for priority projects within the Ministry of Cultural Heritage, Tourism, and Handicrafts, IRNA reported.
The signing ceremony, attended by Reza Salehi Amiri, Minister of Cultural Heritage, Tourism, and Handicrafts, along with key leaders from the banking sector, including Mehdi Jahangiri, Chairman of the Board of the Tourism Financial Group, and Mohammad Reza Fahimi, CEO of Tourism Bank, was held at the central office of the Tourism Bank.
Salehi Amiri described the signing of this agreement as a strategic step to accelerate the completion and operation of 223 hotels that are over 70% physically completed.
He noted that the memorandum is the result of ongoing discussions with the Central Bank and the National Development Fund, culminating in an agreement for loan disbursement through Tourism Bank as the executing bank.
“This agreement will allocate financial resources from the Central Bank, the National Development Fund, and a substantial portion of Tourism Bank’s resources to expedite the completion of tourism projects and strengthen the necessary infrastructure for this industry,” Salehi Amiri stated.
The minister underlined the critical importance of enhancing tourism infrastructure to attract both domestic and international visitors, stressing the need for comprehensive support from governmental and banking institutions.
According to the country’s seventh development plan, the Ministry is tasked with increasing hotel capacity from 455,000 to approximately one million beds, with the goal of inaugurating 100 new hotels annually. Achieving these objectives necessitates collaborative efforts with financial institutions.
“The government acts as a facilitator and supporter in this process, committed to removing barriers to expedite investment and project development. Capital, investors, and infrastructure development are the key pillars for tourism growth and must remain a focal point, as infrastructure development is essential for the advancement of the tourism industry,” he added.
Mohammad Reza Fahimi, CEO of the Tourism Bank, highlighted the investment volumes and funding allocations, revealing that around $21.8 million from the Central Bank and National Development Fund have been earmarked for completing tourism projects. A portion of these funds, along with resources from the Tourism Bank, will be dedicated to financing the completion of the 223 hotels.
Ali Asghar Shalbafian, head of the Investment and Economic Affairs Center at the ministry, identified securing financial resources for tourism projects with over 70% physical progress as one of the center’s key missions.
He expressed optimism that with the support of the Central Bank, National Development Fund, and cooperation from executing banks, 2,700 ongoing tourism projects will gradually be completed.