Travel
Travel and Tourism

Travel And Tourism in Iran

Iran

Euromonitor International's Travel And Tourism in Iran report offers a comprehensive guide to the market at a national level. It looks at travel accommodation, transportation, car rental, tourist attractions and retail travel. It identifies the leading companies and offers strategic analysis of key factors influencing the market, including background information on disposable income, annual leave and holiday taking habits.

Buy online to access strategic market analysis and an interactive statistical database of market size data for travel accommodation, transportation, car rental, travel retail, tourism attractions and health and wellness tourism, tourism inflows and outflows, tourism spending and company and brand shares.

Chapters: 8  |  Tables: 53  |  Publication date: Jan 2007
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GBP260.00

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  • Get insight into trends in market performance
  • Pinpoint growth sectors and identify factors driving change
  • Identify market and brand leaders and understand the competitive environment

Product coverage

Airline capacity and utilisation; Arrivals by country of origin; Arrivals by mode of transport; Arrivals by purpose of visit; Car rental services by sector; Demand factors; Departures by destination; Departures by mode of transport; Departures by purpose of visit; Domestic tourism by destination; Domestic tourism by mode of transport; Tourism receipts and expenditure; Tourist attractions; Transportation; Travel accommodation; Travel retail services

Executive summary

Key Trends and Developments

Iran’s travel and tourism industry in 2005 accounted for 10% of GDP. It also provided 1,710,190 jobs equivalent to 9% of total employment. The government is therefore well aware of the importance of attracting tourists to the country and since the establishment of the Iran Cultural Heritage and Tourism Organisation in 2004, a series of initiatives geared towards the promotion of Iran as a tourist destination have taken place. As a result, Iran’s tourism industry achieved unprecedented highs in 2005, with 2 million inbound tourists which represent a rise of 6% over 2004. However, although the efforts made by the government have earned international praise, the serious threats brought about by the political environment in Iran has negatively affected the industry, with a notable 22% slump in tourist arrivals during 2003. The country has since continued to be highly sensitive to the political developments in neighbouring Iraq and within its own government.

The political climate also negatively affected the inflow of European and American tourists to Iran. Visitors from the US decreased by 15% and the number of visitors from Germany fell by 50% in the 2002 to 2003 period. However, tourists from Arab countries are soaring to unprecedented levels and are expected to contribute to 70% of Iran’s tourism by 2007. Nevertheless, Iran has a wide array of tourism activities including an extensive choice of ecotourism and religious tourism which appeal to Europeans and Arabs alike. Such broad appeal represents significant potential for growth when the political situation stabilises.

Travel accommodation

Iran’s hotel occupancy trends are variable from one city to another. For instance, Tehran mainly benefits from conferences and events while other areas, such as Shiraz, attract holidaymakers during public holidays. The overall occupancy average stands at a feeble 39% and with low quality services and a pressing need for restoration and development of hotels in Iran, it is unlikely that occupancy levels will rise much in the near future.

Transportation

Iran’s air transport network is highly developed, with at least 30 operational airports connecting all major areas. Eight of Iran’s airports have international terminals, of which the most recent is the Imam Khomeini International Airport which recently opened and is still undergoing further developments. The airport is expected to host up to 40 million passengers by the time it is completed in 2015.

However, Iran’s airline industry is not performing at its best due to threats of instability stemming from current tensions. Furthermore, the country does not have enough aircraft to meet demand. Currently there is one plane seat for every 4,600 people in Iran and Iran Airline would therefore need to buy an additional 138 aircraft in order to fulfil current demand.

Iran also has a rail network connected locally and internationally, in addition to bus routes within and between cities. Overall the Iranian railway system comprises 5,802km of single-track lines. Iran is linked by rail to three countries: Turkey, Pakistan, and the Republic of Azerbaijan (in the former Soviet Union). Large towns and cities have urban bus services and as most of the networks are unsophisticated, making travelling uncomfortable, they are rarely used by tourists.

Travel retail

Iran’s travel retail industry is characterised by fierce competition and very low operational standards. By 2005 there were 2,500 agencies, which represents an increase from 90 ten years before. However, this level of growth has not been positive for the industry, as many of the agencies are recording recurrent losses and 40% are on the brink of bankruptcy.

Some of the important areas which offer potential for future growth are: extreme sports/ski packages to Iranian ski resorts which attract organised trips from universities and schools; and pilgrimage packages to Mashada and the holy shrine for Shi'ite Muslims. Finally, cruise ships are increasingly expected to make stops in Iran in the future. Travel agents have recorded an annual increase of 9-10% in demand for this type of tourism and the government is seeking to capitalise on this demand by developing Iran’s capability to welcome cruise ships. This could also have potential to positively impact the development of tourism in seaside provinces such as Arvandkenar.

Table of contents

EXECUTIVE SUMMARY

KEY TRENDS AND DEVELOPMENTS

TRAVEL ACCOMMODATION

TRANSPORTATION

TRAVEL RETAIL

KEY TRENDS AND DEVELOPMENTS

ECONOMIC IMPORTANCE OF TOURISM

Outlook

Impact

NATIONAL TOURISM OFFICE – MARKETING INITIATIVES

Outlook

Impact

NEGATIVE GROWTH FACTOR

Outlook

Impact on the industry

COUNTRY OF ORIGIN

Outlook

Impact

RELIGIOUS TOURISM

Outlook

Impact

ECOTOURISM

Outlook

Impact

TRAVEL ACCOMMODATION

OCCUPANCY TRENDS

QUALITY CONCERNS

HOTEL EXPANSION AND RENOVATION

REGIONAL HOTEL CONCENTRATION

TRANSPORTATION

AIRPORT INFRASTRUCTURE

TRADITIONAL AIRLINES PERFORMANCE

CAPACITY AND UTILISATION PERFORMANCE LEVELS

TRANSPORT INFRASTRUCTURE

TRAVEL RETAIL

TRAVEL RETAIL INFRASTRUCTURE

EXTREME SPORTS

PILGRIMAGE AND RELIGIOUS TOURISM

CRUISES

MARKET DATA

Table 1 Length of Trip: 2000-2005

Table 2 Arrivals by Country of Origin: 2000-2005

Table 3 Arrivals by Method of Transport: 2000-2005

Table 4 Arrivals by Purpose of Visit: 2000-2005

Table 5 Departures: 2000-2005

Table 6 Departures by Destination: 2000-2005

Table 7 Departures by Mode of Transport: 2000-2005

Table 8 Departures by Purpose of Visit: 2000-2005

Table 9 Domestic Trips by Mode of Transport: 2000-2005

Table 10 Incoming Tourist Receipts: 2000-2005

Table 11 Incoming Tourist Receipts % Growth: 2000-2005

Table 12 Outgoing Tourism Expenditure: 2000-2005

Table 13 Outgoing Tourism Expenditure % Growth: 2000-2005

Table 14 Domestic Tourist Expenditure: 2000-2005

Table 15 Forecast Arrivals by Country of Origin: 2005-2010

Table 16 Forecast Arrivals by Method of Transport: 2005-2010

Table 17 Forecast Departures: 2005-2010

Table 18 Forecast Departures by Destination: 2005-2010

Table 19 Forecast Departures by Mode of Transport: 2005-2010

Table 20 Forecast Incoming Tourist Receipts: 2005-2010

Table 21 Forecast Domestic Tourist Expenditure: 2005-2010

Table 22 Forecast Outgoing Tourism Expenditure: 2005-2010

SECTOR DATA

Table 23 Hotels: Units 2000-2005

Table 24 Regional Hotel Parameters 2005

Table 25 Travel Accommodation Sales by Sector: Value 2000-2005

Table 26 Travel Accommodation Internet Sales: Internet Transaction Value 2000-2005

Table 27 Hotel Internet Sales: Internet Transaction Value 2000-2005

Table 28 Hotel Company Rankings 2005

Table 29 Forecast Hotels: Units 2005-2010

Table 30 Forecast Travel Accommodation Sales by Sector: Value 2005-2010

Table 31 Forecast Travel Accommodation Internet Sales: Internet Transaction Value 2005-2010

Table 32 Forecast Hotel Internet Sales: Internet Transaction Value 2005-2010

Table 33 Transportation Sales by Sector: Value 2000-2005

Table 34 Airline Company Rankings 2005

Table 35 Transportation Internet Sales: Internet Transaction Value 2000-2005

Table 36 Air Travel Internet Sales: Internet Transaction Value 2000-2005

Table 37 Forecast Transportation Sales by Sector: Value 2005-2010

Table 38 Forecast Transportation Internet Sales: Internet Transaction Value 2005-2010

Table 39 Forecast Air Travel Internet Sales: Internet Transaction Value 2000-2005

Table 40 Car Rental Sales: Value 2000-2005

Table 41 Car Rental Company Rankings 2005

Table 42 Car Rental Internet Sales: Internet Transaction Value 2000-2005

Table 43 Forecast Car Rental Sales: Value 2005-2010

Table 44 Forecast Car Rental Internet Sales: Internet Transaction Value 2005-2010

Table 45 Travel Retail Outlets: Units 2000-2005

Table 46 Travel Retail Sales: 2000-2005

Table 47 Travel Retail Internet Sales: Internet Transaction Value 2000-2005

Table 48 Travel Retail Company Rankings 2005

Table 49 Forecast Travel Retail Outlets: Units 2005-2010

Table 50 Forecast Travel Retail Sales: 2005-2010

Table 51 Forecast Travel Retail Internet Sales: Internet Transaction Value 2005-2010

Table 52 Tourist Attractions: Value 2000-2005

Table 53 Forecast Tourist Attractions: Value 2005-2010

DEFINITIONS

TRAVEL AND TOURISM

DEMAND FACTORS

Length of Trip

TOURISM PARAMETERS

Arrivals

Departures

Outgoing tourism expenditure

Domestic tourists

Domestic trips

Domestic tourist expenditure

TRAVEL ACCOMMODATION

Hotels

Other travel accommodation

Number of bed nights

Occupancy rates

Number of rooms and beds

TRANSPORTATION

Air

Other transportation

CAR RENTAL

TRAVEL RETAIL

TOURIST ATTRACTIONS

INTERNET SALES

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