Iran: Forex fluctuations impact domestic travel behavior

Financial Tribune – A weak local currency has proved to be a boon to Iran’s inbound tourists while a nemesis to its outbound tourism industry, at least twice in the past decade.

With the strengthening of the US dollar exchange rate against the rial, the number of foreign visitors to Iran, as a cheap destination, accelerated while fewer Iranians opted for overseas travels, particularly to their favorite destinations: Turkey and the UAE’s Dubai.

The number of foreign tourists travelling to Iran over the last fiscal year (March 2018-19) and the first four months of the current year (March 21-July 22) grew by 53% and 40%, respectively. However, 31% and 7% fewer Iranians travelled overseas over the periods under review.

The more than 1.5-fold rise in the number of foreigners visiting Iran has been unprecedented since the Iranian year ending March 2010.