|Dr. Ebrahim Bay Salami's Speech in Germany about 100 Hotels 100 Business|
The "Hundred Hotels - Hundred Businesses"
Dr. Ebrahim Bay Salami
CEO of Tourism Holding of Social Security Organization (HEGTA-Iran)
Banking & Business Forum Iran and Europe
Frankfurt November 16, 2017
1- With structural transformation of manufacturing and services in world economy and the need to eliminate traditional and rentier economy on exporting crude oil and the increasing scarcity of water resources in Iran, the use of new approaches such as tourism and hospitality is a necessity.
2- The history of hotel construction in Iran goes back to Shah Abbas Safavid era in the 17th century and the construction of 200 hotel in the 1970s.
3- Iran has several cultural and historical attractions and in fact is a "country-museum" as a result there is a rising demand to visit Iran, especially world’s best-known museum-cities such as Isfahan, Shiraz, Mashhad, Hamedan and Yazd. All of the important cities of the country are facing the problem of lack or shortage of hotels and accommodation facilities.
4- Iran ranked 116 among 136 countries in the world in terms of accommodation establishments per every 100 inhabitants; this number indicates the tourism facilities and hotel shortage while United Arab Emirates ranked 42, Turkey 64, Saudi Arabia 28 and Malaysia 35.
5- Recent studies indicate that for actualizing the Iran Development Plan strategies by the year 2022 there is a need for construction of 770 new four- and five-star hotels. Supporting the construction of at least 500 four- and five-star hotels by private sector is foreseen in the documents of the Sixth Development Plan of Iran.
6- The current situation of Iran accommodation establishments is traditional, limited and scattered. This plan offers new approaches for expanding the market and building complexes based on value chain and future for development of Iran.
7- Tourism holding as the key affiliated member to Social Security Organization and as the most robust travel corporation countrywide plays an important role for organizing, participating and investing in the construction of 100 hotels based on the priority of tourism destinations in 31 provinces of Iran. The plan is presented in line with Social Security Organization strategies for entering new markets and pioneering development in the process of structural transformation.
8-The "100 Hotels-100 Businesses" Plan was presented based on latest researches and studies on Iran and the world tourism by HEGTA in order to promote the tourism industry of Iran.
9-Many reputable brands announced their willingness to participate in the plan for promoting international networks and creating joint as well as Iranian brands.
10- This comprehensive plan is intended to expand Iranian national tourism market through development of the most-frequently visited tourism destinations of Iran upon their tourism and economic potential. In the first phase of this plan, constructing multi-functional hotels in provincial capitals such as Tehran, Isfahan, Hamedan, Shiraz, Mashhad, Yazd and Qom is our top-priority.
11- By implementing the "One Hundred Hotels- One Hundred Businesses” plan, extensive marketing for visiting Iran and arranging incoming and outgoing tours will be possible. Through this plan the opportunity of expanding national and international networks for creating co-branding as well as Iranian brands will be provided.
12- Sustainable development, local partnership with an economic approach, Iranian architecture, developing hospitality industry and welfare services are emphasized in this plan.
13- The main components of
“Hundred Hotels-Hundred Businesses” plan are related to knowledge, basic theories, approaches, plans, management and function of the projects which are considered in the statement of "100 Hotels- 100 Businesses" plan. This statement is designated in 40 axioms. The process of systematical engineering of the plan based on the development of its design, construction, function, technical support and rejuvenation and also strategies for choosing 100 projects among 233 for 31 provinces of the country are also discus which are considered in the statement of "100 Hotels- 100 Businesses" plan. This statement is designated in 40 axioms. The process of systematical engineering of the plan based on the development of its design, construction, function, technical support and rejuvenation and also strategies for choosing 100 projects among 233 for 31 provinces of the country are also discussed and clarified.
14- Financing and investing methods and opportunities for investments are investigated in HEGTA Company with formation of a Tourism Investment Promotion Unit (TIPU) and with the help of the Central Bank of the Islamic Republic of Iran, the Refah Kargaran Bank (affiliated to SSO) and also other banks.
15- Foreign natural and juridical persons can own properties and establish companies in Iran and they face no problem transferring their share and the benefit from it whenever they are willing to, in accordance with the Iran business regulations.
16- The main approach for investment in this project is defining joint projects (JV) with foreign counterparts and participating for gaining benefit from the brought capital with a win-win approach.
17- The most important laws and regulations regarding promotion and encouragement of foreign investment in the tourism sector are presented in the plan book, HEGTA’s website www.hegta.ir and also in the e-book which is available now.
18- There is 5 to 10 years of tax exemption for the defined projects of this plan.
19- In addition to the Social Security Organization (SSO), this plan enjoys the full support of other organizations such as Cultural Heritage, Handicrafts and Tourism Organization (ICHTO), Ministry of Cooperatives, Labor and Social Welfare (MCLS), Social Security Investment Company (SSIC), Economic and Technical Assistance of Islamic Republic of Iran (OIETAI).
20- Specialized and multi-functional approach to the hotel business in Iran as a dynamic phenomenon is emphasized in the plan and each project has a separate feasibility study and the technical and economic justification based on its location, geographical and climate specifications.