The visa regime for Iranian citizens has been changed; Will the land borders be opened? Why are tourist complexes unprofitable?

Bakı/20.06.23/Turan: The Iranian Embassy in Azerbaijan has announced that Azerbaijan has suspended visa issuance to Iranian citizens at international airports since June 23. Iranian nationals planning to visit Azerbaijan are advised to obtain an "ASAN" visa in advance or apply for it at the Consulate General of Azerbaijan in Tabriz.

The Shahdag Tourist Center CJSC, Azerbaijan's first and largest ski resort complex, incurred financial losses in the previous year, according to a financial report from the State Agency for Tourism CJSC.

The report reveals that the complex's net loss in 2022 amounted to 8 million 688 thousand manats, which is 2 million 344 thousand manats higher than the previous year. Consequently, the company ended 2021 with a net loss of 6 million 344 thousand manats. The report also indicates that the total losses of the Shahdag Tourist Center, including the losses from the previous year, have reached 97 million 177 thousand manats.

Economist Natig Jafarli provided commentary on these developments in the program "Difficult Question."

He explained that previously, Iranian citizens could obtain visas directly at the airport, including in electronic form. However, under the new rules, Iranians will now need to obtain an "ASAN" visa in advance or apply to the Consulate General of Azerbaijan in Tabriz.

Jafarli suggested that this change is likely aimed at strengthening control and may be related to the anticipated opening of land borders.

Regarding the financial losses at the Shahdag Tourist Center CJSC, Jafarli attributed the unprofitability to excessive operating expenses. He stated that excessive spending is a recurring issue for most state-owned enterprises, emphasizing that the state should not engage in business activities but rather focus on regulating the economy through tax and customs policies.

Jafarli further noted that the tourist center has a large territory and a significant number of employees, with over 1,000 staff members. He highlighted additional factors contributing to the center's financial challenges, such as high electricity costs for the cable car and artificial snow production, as well as inefficient management practices.

The comments from economist Natig Jafarli shed light on the changes in visa issuance for Iranian citizens and the financial struggles faced by the Shahdag Tourist Center, illustrating the complexities of the tourism industry and the need for efficient management and cost-control measures.