Parliament voted against the bill to convert Iran's Cultural Heritage, Handicrafts and Tourism Organization to a ministry in an open session on Sunday.
The outlines of the plan failed to pass the legislature, with 139 affirmative and 63 negative votes and 14 abstentions out of 232 lawmakers present at the session.
Due to its financial requirements, the bill needed two-thirds of the votes plus one for approval, a threshold it did not manage to reach, IRNA reported.
Under the proposal, all the properties and human resources of ICHHTO as it is were to be transferred to the new ministry.
It was set out in an amendment that any increase of personnel, facilities and costs within this ministry would be banned during the period of the Sixth Five-Year Development Plan (2016-21).
Majlis Speaker Ali Larijani suggested that the bill be referred back to the Majlis Joint Commission for revision regarding the potential extra costs it could impose on the government.
The suggestion, however, was rejected as well with 115 votes against it.
The idea of conversion has met differing responses since it was first broached.
Lawmakers stress that it will give them greater oversight over the ministry's performance as well as the authority to select the organization's governing board.
Critics, on the other hand, say any such decision will temporarily halt the implementation of tourism plans, setting back progress for a very long time.
Others have stated that the emphasis on tourism sector and even labeling the would-be entity as "Tourism Ministry" would undermine the key role of cultural heritage and handicrafts.
The plan was first signed by 114 members of parliament and discussed in the parliament in April 2017.
The general principles of the plan on converting ICHHTO into a ministry had been approved by Majlis Joint Commission.
