A Chinese tourist in September among the columns in the ancient city of Persepolis, one of Iran’s main attractions. Behrouz Mehri / AFP
A Chinese tourist in September among the columns in the ancient city of Persepolis, one of Iran’s main attractions. Behrouz Mehri / AFP

Easing tensions foster Iran tourism



At the foot of Persepolis, busloads of foreign tourists gaze in awe at the ancient mud-brick ceremonial capital that Iran hopes will be part of a rebirth of its tourism industry.

Although decades of sanctions mean the hotels and infrastructure are not five-star, a tentative political thaw with the West is drawing visitors to Iranian attractions steeped in myth and rumour.

Persepolis, a jewel of the first Persian empire whose palace and terraces took more than 100 years to build, starting under Darius the Great in 518 BC, is one of the highlights.

“Before coming to Iran I knew the vision of this country from the outside was very dark,” says Piotr Chwalba from Poland, who finally went to see Persepolis after thinking of visiting for years.

The rise in visitors is driven by politics. The prospects for tour operators were bleak until recently.

The election of president Hassan Rouhani last year and his decision to resume negotiations with the United States and other leading nations about Iran’s nuclear programme have been a catalyst.

It also helps that his speeches do not tend to excoriate the West in the same manner that his predecessor Mahmoud Ahmadinejad’s did.

“Mr Rouhani’s demeanour, his smile, his positive interaction with the world have created a new sense of ease,” says Ibrahim Pourfaraj, the president of Iran’s tour operators’ association.

Thomas, a 29-year-old engineer from Stuttgart who only wished to give his first name, says the nuclear issue is the only thing he hears about Iran in the news back home. “What we see is totally different than what we hear from the outside,” he says. “The Iranians are very hospitable and very curious.”

Pilgrims from Iraq, Kuwait, Lebanon and Pakistan make up 60 per cent of Iran’s visitors. But the government’s main push is to recapture the spending power of Europe, Asia and America.

For Iran – whose currency, the rial, has been depressed by rampant inflation – tourism offers a foreign-exchange windfall.

The cities of Isfahan, Shiraz and Yazd, all steeped in culture, are considered Iran’s top attractions.

People appear to be coming back. Official figures show that, tourist numbers were up 35 per cent year-on-year at the end of March to 4.5 million, bringing in US$6 billion. Iran, with 17 Unesco-listed World Heritage sites, wants 20 million visitors within a decade.

However, the nuclear deal remains but a hope and tour operators know optimism can vanish quickly. For the moment, local guides are filling their pockets.

“This is a new wave. We have between 300 per cent and 400 per cent more visitors,” says Mohsen Hajisaeid, who was looking after a group from Hong Kong.

“For some languages we don’t even have a guide to help them,” he explains.

Iran’s shortfalls are not confined to translators. Although many hotels have been built in the sprawling conurbations of Mashhad, Isfahan and Shiraz, the closest city to Persepolis, they are primarily for the domestic market. In the tourism sector there is a specific need for customer-focused training and more development.

“Our capabilities are limited compared to the influx of tourists,” said Massoud Soltani-Far, one of Iran’s vice-presidents, at an industry conference.

More than 900 projects are being undertaken at a cost of $200m, but there are still significant gaps in the market.

“Transport and four-star or five-star hotels are not there to meet the demand,” Mr Soltani-Far explained, perhaps alluding to well-publicised problems with the fitting-out of Iranian planes, because of sanctions.

But there are bright spots at the top of the market.

The Jewels of Persia, a luxury train, arrived in Tehran on October 27 on an all-inclusive 15-day trip, with tickets costing between $9,000 and $14,000. Such trips may start to breed unease, however. Some conservative MPs are demanding tourists be given guidance on how to behave as soon as they arrive in the country. A recent spate of acid attacks on Iranian women in Isfahan because they were not properly veiled – though the authorities have denied such a link – has highlighted the requirements.

To those travelling to Iran though, the warm welcome is outweighing concerns about dress, security, or the need for high-class hotels and slick service. “The country is safe – maybe more so than some European countries,” says Thomas.

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The Lowdown

Kesari

Rating: 2.5/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Anubhav Singh
Cast: Akshay Kumar, Parineeti Chopra

 

Director: Laxman Utekar

Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna

Rating: 1/5

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

LA LIGA FIXTURES

Friday (UAE kick-off times)

Levante v Real Mallorca (12am)

Leganes v Barcelona (4pm)

Real Betis v Valencia (7pm)

Granada v Atletico Madrid (9.30pm)

Sunday

Real Madrid v Real Sociedad (12am)

Espanyol v Getafe (3pm)

Osasuna v Athletic Bilbao (5pm)

Eibar v Alaves (7pm)

Villarreal v Celta Vigo (9.30pm)

Monday

Real Valladolid v Sevilla (12am)

 

Diriyah%20project%20at%20a%20glance
%3Cp%3E-%20Diriyah%E2%80%99s%201.9km%20King%20Salman%20Boulevard%2C%20a%20Parisian%20Champs-Elysees-inspired%20avenue%2C%20is%20scheduled%20for%20completion%20in%202028%0D%3Cbr%3E-%20The%20Royal%20Diriyah%20Opera%20House%20is%20expected%20to%20be%20completed%20in%20four%20years%0D%3Cbr%3E-%20Diriyah%E2%80%99s%20first%20of%2042%20hotels%2C%20the%20Bab%20Samhan%20hotel%2C%20will%20open%20in%20the%20first%20quarter%20of%202024%0D%3Cbr%3E-%20On%20completion%20in%202030%2C%20the%20Diriyah%20project%20is%20forecast%20to%20accommodate%20more%20than%20100%2C000%20people%0D%3Cbr%3E-%20The%20%2463.2%20billion%20Diriyah%20project%20will%20contribute%20%247.2%20billion%20to%20the%20kingdom%E2%80%99s%20GDP%0D%3Cbr%3E-%20It%20will%20create%20more%20than%20178%2C000%20jobs%20and%20aims%20to%20attract%20more%20than%2050%20million%20visits%20a%20year%0D%3Cbr%3E-%20About%202%2C000%20people%20work%20for%20the%20Diriyah%20Company%2C%20with%20more%20than%2086%20per%20cent%20being%20Saudi%20citizens%0D%3C%2Fp%3E%0A
New Zealand squad

Tim Southee (capt), Trent Boult (games 4 and 5), Colin de Grandhomme, Lockie Ferguson (games 1-3), Martin Guptill, Scott Kuggeleijn, Daryl Mitchell, Colin Munro, Jimmy Neesham, Mitchell Santner, Tim Seifert, Ish Sodhi, Ross Taylor, Blair Tickner

THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Results

United States beat UAE by three wickets

United States beat Scotland by 35 runs

UAE v Scotland – no result

United States beat UAE by 98 runs

Scotland beat United States by four wickets

Fixtures

Sunday, 10am, ICC Academy, Dubai - UAE v Scotland

Admission is free

The biog

Favourite food: Fish and seafood

Favourite hobby: Socialising with friends

Favourite quote: You only get out what you put in!

Favourite country to visit: Italy

Favourite film: Lock Stock and Two Smoking Barrels.

Family: We all have one!

THE SCORES

Ireland 125 all out

(20 overs; Stirling 72, Mustafa 4-18)

UAE 125 for 5

(17 overs, Mustafa 39, D’Silva 29, Usman 29)

UAE won by five wickets

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Upcoming games

SUNDAY 

Brighton and Hove Albion v Southampton (5.30pm)
Leicester City v Everton (8pm)

 

MONDAY 
Burnley v Newcastle United (midnight)