Iraq Religious Tourism Squeezed By Iran Sanctions

Iraq Religious Tourism Squeezed By Iran SanctionsIraq Religious Tourism Squeezed By Iran Sanctions

With hotels facing mass cancellations, Iraqis in the holy city of Najaf are being hit hard by US sanctions on neighboring Iran, which have forced cash-strapped pilgrims to stay home.

At the city's edge, surrounded by mosaic-covered walls and topped by a golden dome, sits the shrine of Imam Ali (PBUH), son-in-law of Prophet Muhammed (PBUH) and a revered figure among Muslims. The shrine draws a million and a half Shia pilgrims to Najaf each year, in addition to those who travel to the holy city for the huge annual Arbaeen commemoration (40th day after the martyrdom anniversary of Imam Hussein (PBUH)), reported.

The vast majority hail from neighboring Iran, whose population is predominantly Shia.

"More than 85% are Iranians," said Saeb Abu Ghoneim, president of the hoteliers' union in the city.

Signs throughout the city, 150 kilometers south of Baghdad, are translated into Farsi and Iran's national language can be heard across Najaf.

But just days after Washington this month reimposed sanctions on Iran, following President Donald Trump's decision to pull the US out of a landmark 2015 nuclear accord with Tehran, the impact is already being felt in Najaf.

  Currency Crisis

The Iranian rial has been severely hit by internal economic woes and the US measures, losing around half of its value against the dollar since April. Farzad Reza Ali, an Iranian who did manage to fund his trip to Najaf, said the drop in pilgrim numbers was a direct result of the currency crisis.

"[It's] because the rial is worth nothing," he said, a travel company badge tied to a ribbon around his neck in the colors of the Iranian flag. The first round of sanctions against Iran covers financial transactions and imports of raw materials. Further measures due to hit in November will affect Iran's central bank and the vital hydrocarbon industry. At the start of the year the dollar exchange rate was about 42,900 rials. It has since experienced highs of up to120,000 rials on the unofficial market.

  Market in "Free Fall"

Cancellations by Iranian pilgrims could have dramatic consequences for Iraq's tourism sector, which last year directly or indirectly employed some 544,500 people.

It also contributed 3% of GDP, nearly $5 billion, according to the World Travel and Tourism Council.

Tourism is almost exclusively religious in Iraq and is concentrated in Najaf and nearly Karbala, the country's other holy Shia city.

As Najaf prepares to welcome pilgrims for numerous religious festivals this month, there is a notable lack of Iranian arrivals.

Transport links have been slashed—Najaf airport, which used to offer 35 flights a day between the two countries, now operates just 12.

Officials say most of the passengers on the flights leaving Najaf for Iran are Iraqi pilgrims heading for Iranian holy sites.

"A lot of hotel reservations have been canceled and the number of pilgrims to Najaf is very fragile," said Abu Ghoneim, although he was unable to provide precise figures from the city's 285 hotels.

To counter the trend, hoteliers have been forced to offer rooms at bargain prices.

"Prices have been slashed, to less than 50% sometimes," said Youssef Abu Al Tabouk, owner of Najaf's Al Balad Al Amine hotel.

But discounted stays and other special offers are not enough to make up for the impact of sanctions, the 85-year-old said.

Without Iranian pilgrims, he said, "the market is in free fall."


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