Tourism Investors Off the Hook: Deputy Minister Announces Exemption from Land Use Change Fees

In a significant move to boost tourism investment in Iran, Deputy Tourism Minister Ali-Asghar Shalbafian announced the exemption of land use change fees for investors during the Ardabil International Investment Conference. This development is a crucial step towards fostering a more attractive environment for tourism projects across the country.

Speaking at the specialized tourism panel on Friday, Shalbafian highlighted that the previous requirement to pay fees equivalent to 80 percent of the land’s original value served as a barrier to investment. With the new resolution, tourism projects will no longer be burdened by these fees, allowing for more growth and development in the sector.

Shalbafian elaborated on the government’s comprehensive development policies aimed at enhancing tourism, stating that the exemption of construction permit fees for tourism-related projects has been positively received in 13 provinces and over 40 cities. He pointed out that Sarein county in Ardabil province serves as a successful model and the pioneer of this initiative.

Among the supportive measures being implemented by the government are:

• Reduction of project start-up costs: This includes lower tariffs from the Engineering Organization.
• Cross-sectoral tourism investment: The government is committed to fully supporting private sector participation.
• Environmental considerations: Emphasis on sustainable tourism policies.
• Licensing for mixed tourism facilities: New models allow for the issuance of separate licenses for the sale of tourism goods.

Shalbafian revealed that a total of 2,748 tourism projects are currently under construction nationwide, with a focus on generating jobs in sectors such as handicrafts, ecotourism, and tourism. He noted that these projects can be financed through various sources of facilities, ensuring ample support for the growth of the tourism industry.

He also emphasized the vital role of the Ministry of Cultural Heritage in job creation, stating that the tourism sector has achieved an impressive job realization rate of over 90 percent in the last four years. Additionally, he announced the exemption of customs duties on the importation of tourism equipment, further easing the financial burden on investors.

Shalbafian reiterated the importance of supporting domestic production, stating, “Supporting investors is supporting the future of Iran, and investing in Ardabil is investing in the future of Ardabil.” This statement underscores the government’s commitment to fostering a robust tourism industry that benefits local communities.

The Ardabil International Investment Conference, held from November 26-28, coincided with the Ardabil Expo 2025. The event brought together both foreign and domestic economic delegations to showcase the province’s potential and investment opportunities.

Ardabil province, located on a high plateau in northwest Iran, borders the Republic of Azerbaijan and is adjacent to Gilan, East Azarbaijan, and Zanjan provinces. Known for its stunning natural landscapes, warm hospitality, and a rich tradition in silk and carpet trade, Ardabil is also home to the UNESCO-listed Sheikh Safi al-Din Khanegah and Shrine Ensemble. This historic site attracts numerous visitors, especially during the summer months.

Currently, Ardabil boasts 1,415 industrial units employing more than 40,000 people across various sectors. The region’s diverse economic landscape, combined with the government’s proactive measures to stimulate tourism, positions Ardabil as a promising destination for investors looking to capitalize on the growing tourism market in Iran.

In conclusion, the recent announcements made by Deputy Minister Shalbafian reflect a committed effort by the Iranian government to encourage tourism investment in Ardabil and beyond. With supportive policies and an emphasis on sustainable practices, the future of tourism in the region looks bright.