An underperforming tourism market and poor management are pushing hotels in the northwestern province of Razavi Khorasan toward the brink of bankruptcy, a veteran hotelier warned.
"Hotels in the province are facing bankruptcy because of lack of effective management and a low rate of visitor arrivals. Had their owners been advised properly in the first place, they would have preferred to invest in other key, promising sectors such as water and power," Jafar Attar told ISNA on Thursday.
The number of rental homes in the provincial capital Mashhad has multiplied over the past few years, fueling a slowdown in the hotel market.
Demand for hotel rooms has slipped in the face of competition from other alternative lodging facilities such as state-run schools that are rented out to tourists during summer holidays and properties owned by government bodies that are used as accommodation by their visiting employees.
Provincial officials should direct potential investors away from the hotel industry and encourage them to consider other more essential businesses, Attar stressed.
Sad State of Affairs
He said the government's failure to widely promote Iran's tourist attractions and provide a tourist-friendly environment is to blame for the underdeveloped national tourism sector.
"Iran is one of the ten oldest countries in the world and among the five top in terms of ecotourism potential and climatic and cultural diversity. But, regrettably, its tourism sector suffers from serious weakness in its management structure and policymaking to develop the infrastructures," Attar added.
Mashhad is home to the holy shrine of Imam Reza (PBUH), the eighth Shia Imam. It is the second most populous city in Iran. The metropolis annually hosts around 25 million tourists and pilgrims, which add to its demographic load.
