ABSTRACT
The purpose of this study is to investigate and explore the Iranian tourism industry as it tries to meet the challenges which are facing not only the sector but also the Iranian government in a quest to restructure/revive the tourism sector as an economic alternative. Encouraging ‘tourism’ in Iran has become a hotly debated issue between two main factions in the government. One view sees tourism as a means to achieve economic benefits as well as a means to modernize and conform to the international community, where the second view considers tourism as a means of globalization and a threat to the Islamic values and norms. In spite of the vast tourism resources and potentials, Iranian tourism has experienced a tremendous setback due to upheavals of the 1970s and the Iran- Iraq war of the 1980s. The research has explored some fundamental flaws in the government's attitude towards the tourism sector which are embedded in the lack of commitment to, and a strategy for, the tourism sector. A minimal activity in the tourism sector has been confined to particular region/regions which are urban-based and religious oriented forms of tourism. Lack of a formidable tourism organization with a long-term strategy, along with an ad hoc approach to the sector, have curtailed such a promising sector in Iran.