TEHRAN (Iran News) – Head of Iran Hoteliers Association says foreign hoteliers mostly seek selling their brands in Iran rather than investment in Iran for construction of hotels.
Mr. Jamshid Hamzehzadeh said that the COVID-19 pandemic has hurt the tourism sector and especially hotel business in the country, adding that with the start of the summer and summer travels, it seems the condition gets better for the hoteliers. He added that hotels in the northern and western parts of the country are now active and they have better condition nowadays in terms of occupancy rate comparing to hotels in other parts of the country, admitting that the number of domestic travels is increasing because there is few foreign tourists.
He reiterated that as long as the COVID-19 is not contained, the country will face decline or sometimes rise in the number of occupancy rate of the hotels.
Hamzehzadeh stated that if the occupancy rate was 100 percent months ago, it is currently around 15 percent and this rate is around 30 percent in the northern provinces and West and East Azarbaijan provinces.
He added that the condition of hotels in Mashhad is getting better but some of the hotels have decided voluntarily to shut down their businesses until the condition for their businesses improve.
He then pointed to the interest of Iranian investors for investment in construction of hotel, adding that these investors look to the future and they hope with the containment of COVID-19 , the condition would get better and for this reason the number of domestic investors in this business is on the rise.
Hamzehzadeh went on to say that foreign hoteliers in Iran mostly tend to sell their brands and are reluctant for investment, and Iranian hoteliers do not welcome this idea because they have to pay a whopping cost for using the brand. He reiterated that by the way foreign tourists in Iran do not pay attention to the brands of hotels and on the other hand, buying the foreign brands faces several problems in the country like transfer of money.
On the amount of damages inflicted on the hotels in the country due to the pandemic, he said that it is estimated hotel industry in the country has suffered some 18,200b tomans of loss.
He went on to say that from September 23, the rate of room of hotels will increase and this rise in the rate will be between 10 to 25 percent and each hotel based on the demand and supply will announce its rate and some hotels even may not hike the price.
He also criticized the government and said the tourism industry is in its worst condition and the government has not fulfilled its promises regarding this industry.
He expressed hope that president-elect Hojjatoleslam Seyed Ebrahim Raisi would pick hise tourism minister from the related body of this industry.
