Travel & Tourism - Iran | Statista Market Forecast

By 2024, revenue in Iran's Travel & Tourism market is projected to reach US$3.68bn.
Based on an annual growth rate (CAGR 2024-2029) of 13.11%, the market is expected to grow, resulting in a projected market volume of US$6.81bn by 2029.
It is worth noting that in Iran's Travel & Tourism market, the largest market is the Hotels market, with a projected market volume of US$1.61bn in 2024.
By 2029, the number of users in this market is expected to amount to 24.73m users.
In 2024, user penetration is expected to be 22.2%, which is predicted to increase to 34.3% by 2029.
The average revenue per user (ARPU) is expected to be US$184.60.
In Iran's Travel & Tourism market, it is projected that 78% of total revenue will be generated through online sales by 2029.
It is worth mentioning that in global comparison, United States is projected to generate the most revenue (US$214bn in 2024).
Iran's tourism industry is seeing a rise in interest from Western travelers, drawn to its rich cultural heritage and stunning natural landscapes.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

Iran's Travel & Tourism market is experiencing significant growth and development, driven by various factors influencing consumer behavior and market dynamics.

Customer preferences: Travelers in Iran are increasingly seeking unique and authentic experiences, driving demand for cultural and historical tourism. Tourists are drawn to the rich heritage and ancient sites in Iran, such as Persepolis and Isfahan's Imam Square. Additionally, there is a growing interest in eco-tourism, with travelers looking to explore the country's diverse landscapes, from lush forests to vast deserts.

Trends in the market: One noticeable trend in Iran's Travel & Tourism market is the rise of domestic tourism. Iranians are increasingly choosing to explore their own country, contributing to the growth of the local tourism industry. This trend is influenced by various factors, including government initiatives to promote domestic travel and the development of infrastructure to support tourism within the country.

Local special circumstances: Iran's Travel & Tourism market is also influenced by unique local circumstances, such as the country's geopolitical situation and international relations. Sanctions and travel restrictions have impacted the flow of international tourists to Iran, leading to a greater focus on domestic and regional tourism. The country's diverse cultural offerings and hospitable population continue to attract visitors despite external challenges.

Underlying macroeconomic factors: The development of Iran's Travel & Tourism market is supported by underlying macroeconomic factors, including government investment in infrastructure and tourism development. Initiatives to improve transportation networks, enhance accommodation options, and streamline visa processes contribute to the growth of the tourism sector. Additionally, efforts to promote Iran as a safe and welcoming destination play a crucial role in attracting both domestic and international tourists.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.