Iranian vice-president: Launching Azerbaijan-Turkmenistan-Iran marine passenger route under discussions

How much funds were invested in developing tourism sector in Iran in 2009(which ends in March under the Iranian calendar)?

In 2009, about $1 billion was invested in development of the country's tourism sector. About 1.7 million people visited the country compared to 2.2 million people in 2008. The country's tourism sector was underdeveloped, and we have recently begun working to improve the situation in this regard. We are ready to create favorable conditions for foreign investors and actively build hotels, restaurants.

Iran is a country known for monuments of thousands-year history. Shrines of Imam Riza and his sister Hazrat Masumeh are located in Iran. Are any programs are developed to promote tourism and attract tourists to Iran from neighboring countries, especially from Azerbaijan?

Recently, the issue has been mulled with the Azerbaijani Tourism Minister. The Azerbaijani Shiites display great interest in the relics of the eighth Imam Riza and his sister Hazrat Masumeh. We would like the travel companies operating in Iran and Azerbaijan's tour operators to make every effort to increase the number of mutual visits.

Practical realization of the decision on the unilateral abolishment of visa regime between Azerbaijan and Iran can be a good help in this regard. Travel companies can organize tours to the city of Mashed, using the railway in the border area of Iran, as well as in Tabriz.

We are trying to prepare the Iranian tourism companies to simplify the conditions to exchange tourists and cooperate with the Azerbaijani side. Of course, I must say that currently many pilgrims from Azerbaijan arrive in Iran to visit the city of Mashhad. But the potential to develop ties between Iran and Azerbaijan with regards to tourism is significant.

Do you think establishing free and special economic zones play a role of a bridge for development of trade and economic ties between Iran and neighboring countries?

Yes, in general, this is the main purpose of establishing free and special economic zones in various regions of the world. The key purpose of creating zones is to create favorable conditions for expanding economic relations with neighboring countries.

As an example, it is possible to set the economic and industrial zone Araz on the border with Azerbaijan. There is great potential for the transit of goods, investment in production and trade in the border zone. In Iran, there are other similar free zones - Kish, Cheshm, Chabahar, Arvand, where the trade is carried out with foreign countries.

The most important advantage of the free zones is that there are no extra taxes, and this leads to reduced costs of production. Sometimes, we are witnessing the creation of economic zones in countries with free economies and in countries where some customs duties are not charged. While studying the reasons for this, we see that they intend to reduce the cost of production. One of the factors influencing it is that the VAT is not charged.

The Iranian free zones have the potential to produce any product, of which production is possible in the world. Conditions have been created in Iran's free and special economic zones for oil production (in the free zone Cheshm), development of chemical production, construction sector, production of basic goods, food, medical industry and pharmaceutical products, production of automobiles and ships. Products can be stored in these zones and exported to other regions.

Iran's free zones have the potential to import products in amount of $1.5 billion per year. And the same amount is available for exports. In every country, part of the income and economic activity is associated with imports. Iranian economic zones have played a mediating role in import. Part of the industrial production was provided due to this sector.

In addition, investments were made in these zones. In these zones there is potential for exports. Currently we are developing Arvand free zone which has the potential for daily exports to Iraq in amount of $5 million, and every day we carry out exports to Iraq from this zone.

Also Nakhchivan Autonomous Republic can take advantage of the potential of free zones, particularly the potential of Araz economic zone on the border between Iran and Azerbaijan. This free zone can play a significant role in developing trade relations between Nakhchivan and Iran.

Iran and Azerbaijan have three border zones (Bilasuvar, Astara and Julfa). Are there any programs to create free and special economic zones in these border zones?

Special economic zone exists in the Astara border crossing zone. On the other hand, the Araz free zone has ties with the Nakhchivan Autonomous Republic and Bilasuvar border zone. Communication between us and Azerbaijan is also available in the Iranian border zone Kalheybar.

We conducted several discussions with the Azerbaijani side on the investment in the free and special economic zones of Iran. Currently, many investors of Azerbaijan invested in the Araz economic zone. Taking advantage of this opportunity, I invite investors of Azerbaijan to the free economic zones of Iran, and especially to Araz free zone. We are ready to provide them with necessary information, as well as economic packages for investment in these zones.

Currently, in these SEZs there is good opportunity, since in most of them there is great potential for organizing activities.

Marine passenger transportation is planned to be opened between Azerbaijan and Iran. When and under what conditions will this transportation be realized?

Since February, Iran has unilaterally removed visa regime with Azerbaijan. We came to a decision to launch a passenger ship "Mirza Kuchak Khan", which will move between the northern region of Iran and the Azerbaijani port of Baku. We can develop the scope of passenger transportation on the Caspian Sea.

Now one of our problems is the lack of berths in Iran for passenger ships. If the Azerbaijani investors wish to invest in the construction of berths for passenger ships in the port of Anzali, we are ready to create conditions for them.

Another problem in the passenger transportation is the lack of passenger ships. Passenger ships are not many in the Caspian Sea. On the other hand, in Turkmenistan there is a port of Turkmenbashi, which is a good place for the free zone and for the development of tourism. With opening passenger route Baku-Turkmenistan-Iran, we can develop the scope of maritime tourism between the Caspian countries.

Currently we are discussing the opening of maritime passenger transportation between Azerbaijan, Turkmenistan and Iran. It is envisaged that the ambassadors of Azerbaijan and Turkmenistan to Tehran should thoroughly discuss the matter with the relevant structures in their countries and then inform us. The question of opening this route is on the focus of our attention, and we wait for a response from Azerbaijan and Turkmenistan.

The press reported about the meeting between you and Azerbaijan's ambassador to Tehran last Thursday. What issues were discussed during the meeting?

Last Thursday Tehran hosted a conference of ambassadors of Islamic countries, which was attended by the ambassador of Azerbaijan as well. My meeting with him took place as part of this conference. The meeting focused on accelerating the opening of the maritime passenger transportation and the establishment of Azerbaijani banks in Iran, particularly in Iran's free and special economic zones. During the meeting it was agreed to hold another meeting to discuss these two issues in more details. I hope that with the new ambassador's participation, soon we will reach an agreement on these issues.

/Trend News/