Iran eco-tourism operators warn of closures as travel dries up
Tourism businesses report empty rooms, mounting losses and growing pressure to cut jobs as rising living costs push travel out of reach for many households.
Tourism businesses report empty rooms, mounting losses and growing pressure to cut jobs as rising living costs push travel out of reach for many households.
Tourism businesses in Iran are struggling to survive as economic hardship and a sharp decline in travel leave eco-lodges empty, operators facing bankruptcy and workers at risk of losing their jobs, according to a report by Shargh newspaper.
Once promoted as a way to boost local economies and preserve traditional lifestyles, eco-lodges across Iran are now grappling with falling visitor numbers, rising costs and mounting financial pressure.
"The damage caused by the war will take months to repair, and tourism will need a long time to return to previous levels," Yavar Abiri, head of Iran's Association of Eco-Lodge Professional Societies, told Shargh.
Abiri said many Iranians have shifted their priorities from travel to basic survival as economic uncertainty deepens.
"People are saving whatever money they have for essential needs in case another war breaks out," he said.
Travel slips down household priorities
Tourism operators say domestic travel had already been weakening before the latest economic shocks.
Official statistics cited by Shargh showed that nearly half of Iranian households did not take a single trip during the spring of 2024. Industry representatives say rising prices have forced many families to either cancel travel altogether or cut costs by camping, avoiding restaurants and reducing leisure spending.
Officials have also questioned whether travel remains a priority for many households.
Hani Rastegaran, secretary of the National Travel Services Coordination Headquarters, previously described declining domestic travel as a warning sign for the tourism sector and called for an assessment of whether economic pressure had pushed travel out of family budgets.
Eco-lodges face closures
Mahlagha Mahdavi, who operates an eco-lodge in Shiraz and has worked in the sector for a decade, said the downturn has intensified over the past year.
"We faced a sharp drop in visitors and had to offer significant discounts because people simply could not afford to travel," Mahdavi told Shargh.
She said many eco-lodge employees are women and heads of households, prompting operators to avoid layoffs despite worsening finances.
"We do not know how long we can continue without reducing staff," she said.
Many former tourism operators, according to Mahdavi, have already left the industry, while the profile of travelers has changed. Visitors who once belonged largely to the middle class have been replaced by wealthier Iranians who can no longer justify foreign trips but continue to travel domestically.
Revenue collapses, costs soar
Operators in other provinces described similar challenges. Abas'ad Sharafkhani, who runs an eco-lodge in Hamedan province, said revenue between January and April amounted to only a fraction of what he had expected.
"Out of the income I had projected, I earned only about 10 percent, and even that barely covered operating costs," he told Shargh.
Sharafkhani said many eco-lodges are nearing complete bankruptcy and that some properties sustained physical damage during the conflict.
He criticized authorities for failing to provide meaningful support or compensation.
Rising prices force cutbacks
Ahmad Kazemi, an eco-lodge operator in Khorasan Razavi province, said inflation has transformed the economics of the business.
"When we started in 2019, a sack of high-quality Iranian rice cost three million rials ($1.8). Now it costs 64 million rials (about $36)," Kazemi told Shargh.
He said accommodation packages that once cost 4000,000 rials ($2.2) now cost between forty and fifty million rials ($22-28), even after operators reduce their profit margins.
To cope with rising expenses, Kazemi said his lodge has removed lunch and dinner services and now offers only accommodation and breakfast.
"People are not traveling for leisure the way they used to," he said. "Many now choose short local trips because they are cheaper."
Iran's minimum monthly wage is currently equivalent to about $90–$110, depending on exchange-rate movements, while labor experts estimate that many workers earn around $150 per month on average.
Industry operators told Shargh that without financial support and an improvement in household purchasing power, many of Iran's eco-lodges may be unable to continue operating, threatening jobs and a sector that was once viewed as a growing part of the country's tourism economy.
Messages sent by teenagers described a growing gap between what they need and what their families can afford, with some saying even routine activities and modest purchases now feel unattainable.
One teenager said upgrading a computer has become unrealistic after the price of an 8GB DDR5 memory module rose to around 500 million rials (over $280).
Iran's minimum monthly wage is currently worth around $90-$110, depending on exchange-rate fluctuations, while estimates from labor experts put average monthly earnings for many workers at roughly $150.
"With these conditions, buying or upgrading a computer has become a dream," the teenager said.
Another wrote that a mobile phone purchased for 500 million rials (over $280) in February is now worth 930 million rials (over $520).
Others pointed to the disappearance of simple recreational activities from their lives. A 15-year-old said swimming pool fees have more than doubled since early April, while another said that a bicycle that once cost 300 million rials (around $170) now sells for 620 million rials (about $350).
"We Iranian teenagers and young people have reached a point where eating one good meal makes us happy, while our peers in other countries have many things to enjoy," one message said.
Embarrassed to ask
Several teenagers said financial pressure has not only reduced their expectations but also left them feeling ashamed to express their needs.
They described watching their parents struggle with rising living costs and choosing to remain silent about things they want or need.
An 11-year-old girl said her birthday falls in September but she is embarrassed to ask her father to organize a celebration.
She questioned why having a birthday party should be considered a wish rather than a normal part of childhood.
A 14-year-old wrote: "Whenever I ask my parents for something, they say they don't have the money. I feel ashamed when I sit at the dinner table."
Another 15-year-old said gym membership fees had tripled.
"I feel guilty asking for things I need because I know dealing with these prices is not easy for my parents," the teenager wrote.
Some others said they increasingly feel like a burden on their families. One wrote that their parents regularly give up their own wishes to provide for their children, while another said the feeling of being an extra weight on the family has become constant.
A 14-year-old girl said she feels guilty whenever her parents buy something for her and has become pessimistic about her future.
Adult worries replace childhood concerns
Some said their attention has shifted from hobbies, friendships and future plans to concerns about war, economic conditions and daily news.
"Whenever I think about war and ceasefires, I cry," one teenager wrote. "Why can't I enjoy life like other teenagers or go to school wearing what I want?"
A 12-year-old asked why children should be preoccupied with current events instead of enjoying their free time.
Several said the issues occupying their minds resemble adult concerns rather than those usually associated with adolescence.
"I should be thinking about having fun and playing, not working or worrying about politics and the price of gold and dollars," one teenager wrote.
Comparisons with teenagers abroad appeared frequently in the messages.
A 16-year-old girl said she works instead of pursuing leisure activities and is often too exhausted to remain on her feet.
A university entrance exam candidate wrote that seeing graduation celebrations in other countries leaves the strongest sense of longing.
Growing uncertainty about the future
Several teenagers said they struggle to imagine a future for themselves at a stage in life when they should be exploring talents, setting goals and pursuing ambitions.
An 18-year-old said the country's conditions have left little motivation even for ordinary daily life, let alone planning for the future.
Another wrote that, despite being only 18, they are already watching their hopes and ambitions fade.
A 15-year-old said economic pressure, exhaustion and disappointment have become part of everyday life and make long-held aspirations feel impossible to achieve.
Some said uncertainty is even shaping major life decisions.
A ninth-grade student wrote that although they would like to choose an academic path based on personal interests, the future feels so unpredictable that passion has become a luxury.
Instead of focusing on dreams, the student said thoughts are dominated by rising prices, war and the memory of those who have died, creating a sense of being trapped with no clear path forward.
Officials in Khuzestan province said the facility was hit during Israeli attacks, with reports indicating damage to chlorine-related units and storage facilities. Any prolonged disruption could affect both domestic supply chains and exports from one of Iran's most important petrochemical hubs.
Karoon is located in Mahshahr, home to a concentration of petrochemical facilities that form a major pillar of Iran's non-oil economy.
Links to the IRGC
Karoon is owned by Persian Gulf Petrochemical Industries Company (PGPIC), Iran's largest petrochemical holding group.
The United States sanctioned PGPIC and dozens of affiliated companies in 2019, saying the group generated billions of dollars that helped finance the Islamic Revolutionary Guards Corps and its construction arm, Khatam al-Anbiya.
According to the US Treasury, PGPIC subsidiaries worked with Khatam al-Anbiya through engineering, construction and financing contracts worth hundreds of millions of dollars. Washington said revenue from the petrochemical sector provided an important source of funding for the IRGC's military activities.
The Guards have long maintained a significant presence in Iran's energy and industrial sectors through a network of companies, contractors and affiliated organizations that oversee major infrastructure projects and benefit from export revenues.
Role in missile-related industries
Petrochemical facilities are primarily civilian enterprises, but some of their products can have military applications.
Chemical compounds produced in Mahshahr and other petrochemical centers such as Assaluyeh can be used as precursor materials in the production of propellants and other components associated with missile programs.
During previous operations targeting industrial facilities in the Mahshahr area, Israel said sites in the region were involved in producing materials used by Iran's missile program.
Israeli military officials said on Monday that one of their objectives was to destroy infrastructure used to manufacture raw materials essential for ballistic missile production.
The dual-use nature of petrochemical production means facilities can simultaneously support civilian industries while supplying materials that may have military applications.
Critical supplier for domestic industry
Despite scrutiny over military links, Karoon remains one of the most important suppliers to Iran's civilian manufacturing sector.
The company is the region's only producer of isocyanates, advanced chemical compounds used in the production of polyurethane materials.
These products serve as the foundation for a wide range of industrial and consumer goods, including insulation, adhesives, coatings, automotive components, footwear, furniture and household appliances.
Karoon receives feedstock such as benzene and toluene from neighboring petrochemical plants and combines them with chlorine, carbon monoxide and hydrogen to produce isocyanates and related products.
The facility's strategic importance increased after the implementation of the HYCO (Hydrogen and Carbon Monoxide) project, which enabled domestic production of carbon monoxide and hydrogen and reduced dependence on imported supplies.
Impact on supply chains and exports
Industry experts say damage to chlorine production units could have consequences beyond the immediate facility.
Chlorine is essential for the production of phosgene, a key intermediate chemical used in manufacturing isocyanates. Any interruption to chlorine supplies can halt downstream production, affecting multiple industries dependent on polyurethane products.
The effects could extend throughout the Mahshahr industrial zone, disrupting manufacturers that rely on Karoon's output.
Karoon also serves export markets. The company ships products including aniline to India and sells other chemical products to customers in Turkey, Russia and neighboring countries.
Those exports have helped Iran maintain a regional presence in specialty chemical markets while generating valuable foreign currency earnings.
A strategic target
The strike illustrates how Iran's petrochemical sector occupies a position at the intersection of economic and security concerns.
For Tehran, facilities such as Karoon support industrial self-sufficiency, exports and employment. For Israel and Western governments, parts of the sector are viewed as supporting broader military and missile-related capabilities through financial links to the IRGC and the production of dual-use materials.
As a result, major petrochemical complexes have become increasingly significant targets in a confrontation that extends well beyond the battlefield and into the infrastructure underpinning Iran's economy and defense industries.
