TEHRAN –The tourism industry of the northern province of Gilan has taken over 14 trillion rials (over $333 million at the official rate of 42,000 rials) hit from the coronavirus outbreak over the past couple of months.

Efforts are being made to help the tourism sector flourish again with continuous support and injecting a government-provided supportive package, which includes low-interest loans, into the damaged sector, the deputy provincial tourism chief has said. 

So far, the government has paid 200 billion rials ($4.7 million) in loans to support people and businesses active in the tourism sector across the province, Hamidreza Purazar announced on Thursday. 

Government’s support package

In late October, deputy tourism chief Vali Teymouri announced that a new support package to pay loans to businesses affected by the coronavirus pandemic has been approved. 

Depending on the type and activity of the businesses, they could benefit from at least 160 million rials ($3,800 at the official rate of 42,000 rials) to nine billion rials ($214,000) of bank loans with a 12-percent interest rate, he said. 

The loans will be allocated to tourist guides, travel agencies, tourism transport companies, tourism educational institutions, eco-lodges and traditional accommodations, hotels, apartment hotels, motels, and guesthouses as well as traditional accommodation centers, tourism complexes, and recreational centers, the official explained.

In September, Teymouri pointed to the 1.3 million tourism workers in the country, who are facing several issues due to the coronavirus crisis and said “This number, in addition to their households, includes a significant population that makes a living through tourism, who are needed to be considered in ministry’s decisions.”

Back in August, Teymouri announced that the tourism ministry has approved a total budget of 4,920 billion rials (over $117 million) to support corona-affected tourism businesses, covering as much as 36,000 people working in the tourism sector.

Tourism industry’s critical situation

Cultural Heritage, Tourism, and Handicrafts Minister Ali-Asghar Mounesan in October warned that Iran’s cultural heritage and tourism will be in a critical situation if the crises caused by the outbreak of the coronavirus continue.

In August, Mounesan said that Iran’s tourism has suffered a loss of 12 trillion rials (some $2.85 billion) since the outbreak of the coronavirus pandemic.

He also noted that the coronavirus pandemic should not bring traveling to a complete standstill. “Corona is a fact, but can the virus stop tourism? Certainly not. For us, the coronavirus is a new experience in dealing with crises that teaches tourism experts around the world how to deal with such a disaster, and thankfully governments are turning this into an opportunity for better planning.”

Back in April, the government announced it will support those who are grappling with fiscal problems by offering loans with a 12-percent interest rate. The Ministry of Cultural Heritage, Tourism and Handicrafts also suggested a rescue package for tourism businesses.

The government has also allocated a 750-trillion-rial (about $18 billion) package to help low-income households and small- and medium-sized enterprises suffered by the coronavirus concerns.

Optimistic forecasts, however, expect Iran to achieve a tourism boom after coronavirus contained, believing its impact would be temporary and short-lived for a country that ranked the third fastest-growing tourism destination in 2019.

The latest available data show eight million tourists visited the Islamic Republic during the first ten months of the past Iranian calendar year (started March 21, 2019).

ABU/AFM