The US sanctions against the Islamic Republic has undermined Tehran’s plan to expand the tourism industry and diminished the hope for its success.

After the JCPOA and opening the lines of communication between Iran and the rest of the world, the tourism authorities were hopeful about expanding the industry and attracting more tourists. But the United States’ withdrawal from the Iran Deal and the added sanctions has caused many to change their minds about traveling to Iran.

Jalal Rashedi, owner of six hotels in Iran says, “We are ready to face the dark storm that is gathering on the horizon.”

He is not hopeful about Iran’s tourism industry.  He says the tension between Washington and Tehran has had a serious negative impact on Iranian businesses.

The Iran Deal’s resulting optimism even caused some foreign companies, such as Accor, to invest in Iran’s hospitality sector. Accor bought two hotels in Tehran near Khomeini Airport and became the first foreign company to own a chain of hotels in Iran after the revolution in 1979. The company has not yet announced whether it plans to stay in Iran after the sanctions or not.

Despite the government’s attempts to soften the impact of the sanctions on the tourism industry, it is doubtful that there would be a future for the industry in Iran.

After the first round of sanctions began earlier this Summer, British Airways, Air France, and KLM all stopped their direct flight to Tehran. They mentioned the lack of demand as the reason. Currently, Lufthansa, Austrian Airlines, and Alitalia are the only European airlines that have a direct flight to Iran.