TEHRAN - Jamshid Hamzehzadeh, the head of Iran’s Hotel Association, has announced that 550 accommodation centers, including one- to five-star hotels, boutique hotels, and eco-lodges, are currently under construction across the country.

The total investment for these projects amounts to 5,700 trillion rials (some $9.5 billion), the official said.

He made these remarks in relation to a recent pledge made by the Minister of Cultural Heritage, Tourism, and Handicrafts, Seyyed Reza Salehi-Amiri, who mentioned the goal of building 100 new hotels each year.

“The construction of 550 accommodation centers is already underway, representing a significant development in Iran’s hospitality sector,” he said.

The majority of these projects are located in Khorasan Razavi province, while provinces such as Kohgiluyeh and Boyer-Ahmad, and Chaharmahal-Bakhtiari have the fewest under construction, he said.

Hamzehzadeh stressed that without proper support from investors, these projects may face delays or remain incomplete.

While government resources are limited and unable to provide loans for every project, Hamzehzadeh expressed hope that these initiatives would be successfully completed.

Earlier this month, the tourism minister announced the development of a comprehensive plan to boost the country’s tourism capacity. Speaking on the sidelines of a cabinet meeting, Salehi-Amiri emphasized ongoing discussions with key government officials to implement the program effectively.

The minister also emphasized the government’s pledge to construct 100 hotels annually during a five-year development plan. He also called for greater involvement of the private sector. “While the government can address 20 percent of the infrastructure needs, private investment is crucial to filling the gap,” he said.

Iran’s tourism industry witnessed a 21% upsurge in 2023, signaling a strong recovery in the post-COVID-19, according to data compiled by the World Travel and Tourism Council. According to the WTTC, the increase was part of a broader recovery following the impact of the COVID-19 pandemic, which saw the industry plummet by 45% in 2020.

The Islamic Republic expects to reap a bonanza from its numerous tourist spots such as bazaars, museums, mosques, bridges, bathhouses, madrasas, mausoleums, churches, towers, and mansions, of which 28 are inscribed on the UNESCO World Heritage list.

AM