Hotel industry grapples with low occupancy rate, says head of hotel association

August 18, 2024 - 18:11

TEHRAN – Iran’s average hotel occupancy rate has fallen below 40 percent, warns the head of the hotel association, urging strong government action and international marketing to revive the struggling tourism industry.

“The low hotel occupancy rate is a significant issue for the industry, with many hotels struggling to cover expenses,” Jamshid Hamzehzadeh stated in a recent interview with ILNA, warning that it could take years for hotels to reach full capacity again.

To mitigate these losses, he called for a clear, systematic, and comprehensive plan that involves cooperation from all relevant government bodies, which he believes is crucial for reviving the hospitality industry.

However, Hamzehzadeh criticized the current lack of coordination among these bodies, noting that some prioritize their own interests over national concerns. For instance, the hotelier underscored, the tax authorities and insurance agencies show little flexibility or support for the tourism sector, which hampers efforts to attract foreign tourists.

“The mere opening of borders is insufficient to attract foreign tourists, as they are not waiting at the borders to enter the country,” Hamzehzadeh pointed out adding that heavy advertising campaigns and strategic marketing efforts abroad are essential to draw international visitors.

Participation in major international tourism exhibitions and the simultaneous abolition of visa requirements are also necessary steps to encourage tourism, he emphasized.

According to Hamzehzadeh, the success of country’s tourism industry is closely tied to its political relations with other countries. “The easier it is to establish political connections with a country, the easier it is for their tourists to visit your country,” he stated. 

He concluded by emphasizing the need for the ministry of cultural heritage, tourism, and handicrafts to take a leading role in reviving efforts, stressing that everyone from the minister to managers and experts within the ministry must be fully committed to overcoming the challenges facing Iran’s tourism industry.
XF/AM