The Guardian Council, Iran’s supreme body for vetting legislation passed by the parliament, has given its assent to the formation of a Ministry of Cultural Heritage and Tourism, Mehr News Agency reported on August 6.

Currently, the Iran Cultural Heritage, Handicrafts and Tourism Organisation (ICHTO), a non-ministerial body, is in charge of the country’s tourism and cultural affairs. However, ICHTO has been repeatedly criticised for not being capable of catering for the increase in visitors Iran has attracted since it relaxed its visa requirements for citizens of dozens of foreign countries.

The advent of the new ministry should mean its appointed minister will have expanded powers to request funds for further investment in the tourism sector, the news agency report added.

Previously, the government expected private sector funding would help develop Iran’s tourism sector—but the new realities brought about by the punishing US sanctions regime directed at Iran and a lack of available credit have forced the Rouhani administration to reassess how it will attract tourists.

One tourism professional who spoke with bne Intellinews on condition of anonymity said: “The cultural heritage organisation [ICHTO] is a place to work if you want to embezzle money.” He suggested Iran’s tourism industry is riddled with corruption and was marked by a serious lack of oversight. “But forming a ministry will have another unintended consequence where now the parliament gets a say in what happens,” he added, also observing: “If we get a conservative [principalist] parliament next, then they could seriously hamper tourism efforts.”