US economic sanctions weigh on Irans tourism sector

The United States’ economic sanctions on Iran, especially the reintroduction of tariffs have negatively impacted the Asian country’s tourism sector.

The sanctions came into effect in August, with more to come in November.

Last month, Air France, KLM, and British Airways halted their direct flights to Iran, whereas Alitalia, Austrian Airlines, and Lufthansa continued to fly to Iran, according to CNBC.

“Other airlines, such as Iran Air, can fill the void," Alireza Miryousefi, an Iranian spokesperson at the United Nations, said.

The Asian nation is not expected to host foreign tourists or attract investors soon, Jalah Rashedi, an Iranian businessman who owns six hostels, commented.

“(We are) simply preparing for the dark storm clouds looming in the horizon," Rashedi told CNBC, adding that occupancy in his hostels was higher before 2016 and Trump becoming president.

The ever-souring US-Iran relationships in addition to the sanctions and tariffs has hurt local Iranian businesses.

It is worth mentioning that while several companies have announced that they would withdraw their investments from Iran, French hotel operator Accor has not made an official announcement regarding the operation of its hotels in the country.

Many European companies have expressed fears that they would be black-listed by Trump if they continued to operate in Iran.

Another Iranian businessman, who spoke on condition of anonymity, told CNBC that US sanctions had suspended his plans to inaugurate a new hotel in Yazd city, where foreign tourism had tumbled 75%.

"Tourism will be affected... but we are confident the sector can grow due to Iran's inherent draw, including its archaeological and natural beauty," Miryousefi concluded.