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Sanctions Have Unintended Effect on Iran's Tourism Industry - Part 3
When you're talking about travel and tourism to Iran, you can't overlook the question of U.S. and international sanctions imposed against Tehran as part of the ongoing1 dispute over its controversial nuclear program. The sanctions were never meant to target Iran's travel and tourism industries, but their effect is felt in numerous ways.
Absolute Travel in Manhattan has been sending American tourists to Iran for more than a decade, in part, says company President Ken2 Fish, because he was able to find a tour operator in Tehran to manage things on the Iran side.
"When I selected the company that I chose to do business with, I contacted them and asked them to meet with me and on a handshake I said we're going to be doing business together. And eleven years down the road we're still doing business together," said Fish.
Travel and tourism activities are officially exempt3 from U.S. sanctions. But the sanctions do prevent American travel companies from sending money directly to their partners in Iran. Those wire transfers have to be cleared first through the Federal Reserve Bank of New York, which takes time and is limited to $10,000 per transaction. So business people like Ken Fish find other ways.
"That's really not a problem. We're not dealing4 with banks in Iran. We always have overseas banks whether they are in Europe or Dubai or some other venue," Fish explained.
The banks do charge transfer fees, however, which can cut the profit margin5 for smaller tour operators, like this one seen in home video.
And the sanctions also influence the spending habits of tourists in Iran, because of the lack of credit card or debit6 card services.
The sanctions have also led to a drawdown in Western investment. Kish Island, for example, was poised7 in the 1970s to become a major tourist paradise. But economist8 Fariborz Ghadar says that potential has not been realized.
"If you Google Kish you can find a series of very chic9 hotels, but in fact, some of these hotels only exist online. They haven't actually been built. Hotel construction has fallen behind - hotels which were scheduled to be completed 5 years ago," Ghadar explained.
As the Europeans leave though, other players take their place.
"There's no doubt that the Chinese to some extent will invest in this," noted10 Sohrab Sobhani, a business consultant11, who recently co-authored an article on Iran's economy for the Harvard International Review. "This is a natural thing. When Chinese and Asians see there is a market for them in Iran there is no doubt that in addition to their investments in oil and gas they will make an investment in tourism as well."
But Fariborz Ghadar says that may not provide enough help for the tourist sector12.
"When you go to China and Beijing and Shanghai you see that their hotels are all Western brands, the Meridian13 and the Hyatt and others," Ghadar noted. "If the firms doing business in China are Western, do you really want to import Chinese know-how14 into Iran?"
Despite sanctions and a loss of foreign investment, there are some positive indicators15. Domestic investment in Iran's hospitality sector is said to have nearly doubled in five years with about 500 small hotels being built across the country. Also, nearly two percent of the Iranian workforce16 is now in the tourism industry. Most of those jobs were created in just the past decade and much of the future growth in tourism will come from Iran's private sector.
1 ongoing | |
adj.进行中的,前进的 | |
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2 ken | |
n.视野,知识领域 | |
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3 exempt | |
adj.免除的;v.使免除;n.免税者,被免除义务者 | |
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4 dealing | |
n.经商方法,待人态度 | |
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5 margin | |
n.页边空白;差额;余地,余裕;边,边缘 | |
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6 debit | |
n.借方,借项,记人借方的款项 | |
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7 poised | |
a.摆好姿势不动的 | |
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8 economist | |
n.经济学家,经济专家,节俭的人 | |
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9 chic | |
n./adj.别致(的),时髦(的),讲究的 | |
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10 noted | |
adj.著名的,知名的 | |
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11 consultant | |
n.顾问;会诊医师,专科医生 | |
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12 sector | |
n.部门,部分;防御地段,防区;扇形 | |
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13 meridian | |
adj.子午线的;全盛期的 | |
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14 know-how | |
n.知识;技术;诀窍 | |
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15 indicators | |
(仪器上显示温度、压力、耗油量等的)指针( indicator的名词复数 ); 指示物; (车辆上的)转弯指示灯; 指示信号 | |
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16 workforce | |
n.劳动大军,劳动力 | |
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