Travel Businesses Face Massive Losses as Internet Restrictions and Regional Instability Paralyze Tourism Sector
Reports emerging from Iran indicate that the country’s tourism industry has effectively entered a state of near-total shutdown following months of economic stagnation, war, political instability, and widespread internet disruptions.
The head of Iran’s Association of Air Travel and Tourism Agencies says travel agencies have “practically had no economic activity since last Nowruz,” while industry experts warn that the ongoing “neither war nor peace” environment has brought tourism-related businesses to a standstill.
Hormatollah Rafiei, speaking on May 12, stated that according to estimates submitted to Iran’s Ministry of Cultural Heritage, Tourism, and Handicrafts, the tourism sector has suffered nearly 5 trillion tomans in losses in just the past two months alone.
Iran has faced continuous instability since June of last year, following the 12-day war between Iran and Israel, subsequent domestic unrest, and crackdowns on protests. A separate 39-day conflict that began on February 28 with joint US-Israeli military operations remains under a fragile ceasefire.
Skilled Workers Leaving the Tourism Sector
Another major crisis now facing Iran’s tourism industry is the growing departure of trained professionals from the field.
According to Rafiei, many experienced employees of travel agencies have abandoned tourism-related work entirely due to the collapse in income opportunities.
He stated that numerous trained staff members have been forced to seek unrelated employment, including work in sectors such as hairdressing and other service industries, simply to survive financially.
Iranian economic newspaper Donya-e-Eqtesad also reported that approximately one million jobs connected directly or indirectly to the tourism industry have been affected by wartime conditions and internet disruptions.
Internet Shutdowns Deliver Severe Blow to Tourism Businesses
Experts say that while the recent wars sharply reduced domestic and international travel demand, the widespread shutdown and restriction of internet access have effectively destroyed the industry’s marketing and communication channels.
Kajaro, a major Iranian tourism website, reported that Iran’s travel market has faced severe disruption due to communication blackouts and internet restrictions, with no clear outlook for recovery.
The Iranian regime has maintained extensive internet restrictions since February 28 under the justification of wartime security conditions. Millions of citizens remain cut off from reliable access to the global internet.
Businesses across multiple sectors have already reported major financial losses linked to the internet shutdowns, but tourism operators say the consequences for their industry have been especially devastating.
According to Kajaro’s report, many tourism businesses encountered serious disruptions in online operations, international communications, messaging services, and customer contact systems after internet access was restricted. Numerous companies reportedly suspended operations entirely.
Ebrahim Haj Khan Mirzai Sarraf, a tourism expert and faculty member at the University of Science and Culture, told Donya-e-Eqtesad that internet restrictions severely damaged the industry’s ability to communicate with potential customers.
“Even if businesses themselves still have internet access, if the audience is absent from the internet, marketing opportunities are effectively lost,” he explained.
Many eco-tourism operators and tourism activists have also written on social media that the internet shutdowns have caused even greater damage than the war itself by destroying years of digital advertising and audience-building efforts.
Eco-Tourism Businesses Isolated
According to Khabar Online, Yavar Abiri, head of Iran’s Association of Eco-Lodge Professional Organizations, said internet restrictions effectively eliminated communication channels for many eco-lodges located in remote regions.
These businesses had relied heavily on social media platforms to introduce their services to travelers and attract customers.
Without access to those platforms, many tourism operators say they no longer know how to market their businesses or maintain visibility in the travel sector.
Industry representatives describe the loss of online communication and promotional tools as a catastrophic blow to already struggling tourism enterprises.
“A Bad State” for Iran’s Tourism Industry
Amir Pouyan Rafiei Shad, chairman of the Tehran Association of Air Travel, Tourism, and Pilgrimage Agencies, described the condition of Iran’s tourism sector as deeply critical, saying the industry is currently in “a very bad state.”
Domestic media reports indicate that the sharp decline in travel caused by economic instability, combined with the cancellation of tours due to internet disruptions, has seriously undermined the future of Iran’s tourism industry, which depended on gradual development and long-term investment.
Babak Sohrabi, a tourism industry activist, told Donya-e-Eqtesad that tourism is among the sectors “most sensitive to tension, instability, and uncertainty,” both directly and indirectly.
Despite repeated warnings from industry experts, regime authorities have shown little response to growing demands for restoring unrestricted internet access.
Critics argue that in 2026, the internet is no longer an optional tool that can be removed from daily life for weeks or months without devastating consequences. They warn that the economy, education system, communications infrastructure, and even public trust are now deeply tied to digital connectivity.
