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NewsID : 247922 ‫‫Sunday‬‬ 12:02 2025/09/28

Escaping the sanctions trap through tourism growth

At a time when foreign pressures on Iran’s economy are mounting by the day, overlooking tourism would be a strategic mistake. Statistics show that this industry has the ability to rebound even in the toughest crises and can become one of the main pillars of Iran’s resistance economy. In the shadow of sanctions, the future of the national economy is more tied than ever to such capacities.

Nournews: In recent years, and especially today, Iran’s economy has come under unprecedented pressure from U.S. and European sanctions. Oil and banking restrictions have limited foreign currency transfers, while reliance on a single-product economy has further exposed the country’s vulnerabilities. In such conditions, one of the few domestic capacities that can inject fresh vitality into the national economy is the tourism industry—an industry that not only generates foreign currency but also creates jobs and contributes to economic resilience.

According to Iran’s 2024 comprehensive tourism industry report, tourism’s direct share of the country’s GDP in 2019 stood at about 1.7 percent. Although this share fell sharply during the COVID-19 years, it climbed back to 2.647 quadrillion rials in 2023. Forecasts indicate a 3.7 percent increase for 2024. This trend shows that even under severe conditions, tourism has a fast recovery capacity and can serve as a driver of economic growth.

After oil, Iran’s largest potential source of foreign currency earnings could well be tourism. In 2019, international visitors spent an estimated $25.3 billion in Iran. Although the pandemic and political restrictions reduced this figure, projections show a 15.3 percent growth in 2024. If current trends continue, by 2034 Iran’s income from foreign tourists is expected to reach around $29.7 billion—a figure that could seriously replace part of the country’s oil revenues.

Employment is another decisive factor. In 2019, nearly 1.95 million people (about 8 percent of the national workforce) were directly employed in tourism. This number dropped after the COVID-19 crisis to 1.60 million in 2023, but is estimated to have risen to 1.83 million in 2024. If long-term prospects materialize, hundreds of thousands of new jobs will be created across the country over the next decade—opportunities that, unlike many other industries, can easily emerge in underdeveloped regions and reduce migration to major cities.

Another key point is the significant share of domestic tourism. In 2019, about 81.2 percent of all tourism spending was domestic, but in 2023 this figure rose to 87.4 percent. Domestic tourists spent $109.1 billion in 2019, which increased to $117.6 billion in 2023 and to about $130.3 billion in 2024. This means that even if foreign arrivals face restrictions, the domestic market can serve as a reliable backbone for the industry’s sustainability.

Such data makes it clear that tourism is not just a service industry but a strategic option for Iran’s economy under sanctions. It can diversify the economy, reduce oil dependence, provide a stable source of foreign exchange, and unleash a wave of job creation—especially in rural areas and small towns. Moreover, the arrival of foreign tourists projects a fresh image of Iran to the world and strengthens the country’s soft power.

Of course, the road to tourism prosperity is not without obstacles. Weak infrastructure in transportation and accommodation, visa restrictions, negative media portrayals, low service standards, and economic instability are among the industry’s serious challenges. Overcoming them requires smart policymaking: facilitating visa issuance, investing in infrastructure, training specialized human resources, targeted international marketing, and offering financial incentives to attract both domestic and foreign investors.

At a time when foreign pressures on Iran’s economy are growing by the day, ignoring tourism would be a strategic error. Statistics show that this sector has the ability to bounce back even in the toughest crises and can become one of the pillars of Iran’s resistance economy. Now is the time to move tourism from rhetoric to action—because in the shadow of sanctions, the future of the national economy is more dependent than ever on such domestic capacities.

 

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