The decline in foreign travels by Iranians has not been offset by domestic travels, the head of Travel Agents Guild Association said.
“Those who can no longer afford to travel abroad have not shifted to destinations at home. Domestic and foreign travelers have different interests and preferences,” Hormatollah Rafiei also told ISNA.
Instability in foreign currency rates has derailed travel agencies' service fees, he added.
The official noted that it takes at least two weeks from the time a travel package is planned to the date it is marketed, and fluctuations in foreign currency rates are so wild, "you can’t set a stable rate".
The value of Iranian rial has lost more than half its value since March 2018.
Referring to the eroding purchasing power of Iranians, Rafiei said, “Travelling is not a priority for most people, particularly now that prices of some consumer goods have risen astronomically.”
Amir Pouyan Rafiei-Shad, the head of the board of directors of Tehran Tour and Travel Agencies Association, said inbound travels to Iran are on the decline and many travel agencies are on the verge of closure.
"Travel agencies have faced several challenges over the past few months, including the rise in departure tax, instability of foreign currency rates and an upsurge in transportation costs. All these have led to a drop in the number of tourists," he said.
“Reports from hotels and other lodging facilities show that inbound tours have declined by around 50% over the past couple of months.”
Rafiei-Shad noted that under the circumstances, downsizing-related layoffs are inevitable and the next stage would be to close down the business altogether.
"There are over 3,000 travel agencies in Tehran, each having 10 to 15 employees. Current trends could push high unemployment to disruptive labor market changes. The government needs to lend support to travel agencies,” he told Tehran Chamber of Commerce, Industries, Mines and Agriculture's news outlet.
In October, Morteza Qorbani, secretary of Iran Flight Services Guild Association, told ISNA that the number of Iranian citizens' outbound air travels to their most popular destinations has at least halved in recent months due to skyrocketing prices caused by a freefalling national currency.
"Istanbul, Tbilisi, Kuala Lumpur and Dubai are the most travelled flight routes for Iranians and the number of those flights has halved at present," he said.
According to Qorbani, some flights to destinations in Georgia and Turkey have witnessed up to 60% decline in demand.
He conceded that a portion of the decline may be due to seasonal stagnancy, but maintained that the most important factor has been the hefty costs of travel.
Although airfares are expected to become slightly more affordable as the rial is finding a degree of stability on the back of recent market intervention by the central bank, they are still way more expensive than last year.
The downturn in visits to Iran from abroad is also evident in data released by Iran Airports Company.
According to IAC's latest report, 295,698 takeoffs and landings were registered during the first eight months of the current Iranian year (March 21-Nov. 21), which showed a 12% decline compared with the similar period of last year.
More than 35.63 million passengers were transported during the period, indicating a 16% fall year-on-year.
The report shows 243,747 takeoffs and landings were made by domestic flights from March 21 to Nov. 21, down 11% compared with the similar period of last year. More than 27.98 million passengers were transported domestically, indicating a 15% decrease YOY.
On the international front, 51,951 takeoffs and landings were registered, down by 16% YOY. A total of 7.65 million passengers were transported to and from overseas destinations, posting a 16% decrease compared with the corresponding period of last year.
