Iran targets 2m tourists by 2028 as incentives rolled out for tourism investment
Iran plans to attract two million foreign tourists a year and generate €6 billion in tourism revenue by 2028, while expanding private investment through new incentives and a major increase in state-backed financing, tourism minister said.
Reza Salehi-Amiri said about 3,800 tourism projects were currently under way across Iran, all privately owned, with the government focused on policy-making, support, licensing and removing obstacles, IRNA reported in Saturday.
He said the government had introduced five major incentives for the sector, including discounts of up to 80% on municipal fees for hotel construction, customs exemptions for importing hotel equipment, lower water, electricity and gas costs, and permitted for mixed-use hotel, residential and commercial complexes.
“These incentives have led to a new wave of demand for tourism infrastructure development,” Salehi-Amiri said.
According to the minister, bank financing for tourism projects has also surged 20-fold in 2024 to more than IRR500 trillion ($270 million) this year.
Iran will prioritize tourists from Central Asia and the Caucasus, followed by Persian Gulf Arab states and neighboring countries, major Muslim countries including Indonesia, Malaysia and Egypt, and then China and Russia. Europe, Australia and the US are ranked as a fifth-tier market.
Salehi-Amiri said Chinese tourists were currently waiting for the regional security situation and war to ease before deciding whether to travel to Iran, while Russian tourism had also declined following the Russia-Ukraine war and regional conflicts.
The minister said each foreign tourist spends an average of $1,270 in Iran, calling tourism a major economic opportunity because its foreign currency earnings are distributed directly through the domestic economy.
Iran also receives about one million people a year for medical treatment, with hospital, treatment and surgery costs averaging between one-third and one-fifth of regional prices and about one-tenth of European costs, he said.
Salehi-Amiri called for collective efforts to reach out to the seven to nine million Iranians living abroad, saying they should be encouraged to visit relatives in Iran rather than traveling elsewhere.
“We must reconcile with Iranians, invite them to their own home and put aside relationships that are full of ornamentation,” he said.
Iran has about one million historical sites, while 58 properties are on UNESCO’s tentative list. It has 27 intangible cultural heritage entries and ranks fourth globally in that field, according to the minister.
For handicrafts, Iran has set a 2028 target of €500 million in revenue, 100,000 jobs and 8% growth.
Salehi-Amiri hoped that after the current conditions ease, tourism could open the way for cultural diplomacy and help present a real image of Iran.