Hotel rates are set for a 12% rise in the next fiscal year (starts March 20), slightly less than what the Iran Hotel Association had originally demanded. The association had called for a 15% raise but the Iran Cultural Heritage, Handicrafts and Tourism Organization opposed it on the grounds that it was higher than the 11% inflation rate announced by the government. The two sides eventually reached a compromise and agreed on a 12% rise, ISNA reported. Hotels in Iran are normally accused of overcharging and failing to provide services in accordance with their star rating. As a result, people are turning to other alternatives such as vacation homes which have hurt the hotel business. New rates will coincide with the Nowruz (Iranian New Year) holiday season when most families across the country travel.
