IRANIANS THREATEN TO REDUCE PILGRIM VISITS TO

C O N F I D E N T I A L BAGHDAD 002287 NOFORN SIPDIS C O R R E C T E D C O P Y (ADDING CAPTION) E.O. 12958: DECL: 08/23/2019 TAGS: ECON IR IZ PGOV SUBJECT: IRANIANS THREATEN TO REDUCE PILGRIM VISITS TO IRAQ,S HOLY CITIES REF: A. A) 08BAGHDAD2316 ¶B. B) 09BAGHDAD1876 Classified By: Classified by John Kincannon, PRT Team Leader, Karbala f or reasons 1 (b) and (d). ¶1. (U) This is a PRT Karbala reporting cable. ¶2. (SBU) On August 12, Ridha Arjimand Zada, the Najaf representative of the Iranian Committee of Haj, Pilgrimages and Holy Visits told Karbala-based Noon al-Husayn Radio that Iran would indefinitely suspend sending pilgrims to Iraq as soon as Ramadan begins (Note: Ramadan began August 21). Zada said the freeze was a reaction to many complaints received from Iranian pilgrims about poor treatment and service in Iraq. Long wait times under the hot sun at border checkpoints, poor road conditions to the holy cities, a lack of electrical service for air conditioning, and poor service from hotels were among the complaints cited by Zada. Zada that the suspension would encourage Iraq to make the necessary improvements to support Iranian visitors. ¶3. (SBU) On August 20, Al-Huda and other radio stations reported that Karbala Governor Amal al-Din al-Hir met with Husayn Akbari, a representative of Iranian Committee of Haj, Pilgrimages and Holy Visits. Akbari told reporters that Iranian pilgrims were complaining of inadequate services in Iraq despite the signing of a bilateral agreement between the two countries guaranteeing Iranian visitors the best available services. Akbari complained that Iranian buses must wait up to nine hours for security checks at the al-Mondriyah border checkpoint and that facilities built for five hundred people per day were currently supporting five thousand per day. Akbari criticized the inadequacy of hotels in Karbala and complained transportation for luggage in Karbala which he claimed consisted of three-wheeled bicycles and handcarts. (Comment: PRT Karbala is unable to independently verify reports of long waits at the border, but reports on luggage handling are true. Most residents of downtown Karbala, as well as Iranian hotel visitors, currently get power eight hours a day, mostly in the evening. End Comment). Akbari threatened a staged reduction of Iranian pilgrims from five thousand to three thousand to one thousand if steps were not taken to improve services. Akbari also expressed Iranian interest in building a new five-star hotel in Karbala if the investment law would allow the construction. ¶4. (SBU) Governor Amal al-Din also spoke to reporters promising to address Iranian grievances through a joint committee of the two countries and stated that Iranian investment was welcome as long as they had Iraqi partners. He also noted that although the Iranians are expressing a desire for high-level services, they are paying extremely low rates to visit Iraq's holy cities. Amal al-Din noted that the typical Iranian pilgrim pays $20/night for lodging, three meals, and transportation whereas pilgrims from Gulf Arab countries pay $70 and up. (Comment: Reftels describe how the Iranian parastatal tourism monopoly Shamsah uses its market power to drive an extremely hard bargain in negotiations with local hotels. End Comment). Amal al-Din also expressed a hope that the Iraqi and Iranian governments would revisit the practice of issuing all Iraqi visas for Iranians through Shamsah and restoring the former system which allowed more market competition (Reftel B). ¶5. (C/NF) Muhammad Sadiq al-Hir (protect),President of Karbala's Hotel and Restaurant League and the sole private sector representative on the Iraqi government's religious tourism council, told PRT Karbala Team Leader that his organization met with the Iranian Committee last month. At that time they reportedly made no mention of these Qthat time they reportedly made no mention of these complaints. Al-Hir surmises that the Iranians are seeking to apply greater pressure on Iraq regarding the pilgrim trade, although whether this is a serious threat is unclear. ¶6. (C/NF) Comment: This appears to be the latest salvo in the ongoing battle between the Iranian parastatal Shamsah and politically-allied Iraqi travel agencies against the independent business communities of Karbala and Najaf to control quality, revenues and prices in the lucrative Iranian pilgrim traffic to Iraq's southern holy places (reftels). Unfortunately, as currently structured, it is lucrative only for the Iranians. The PRT and al-Hir are skeptical the Iranians will follow through on this threat for any length of time, although Iranian tourism in Karbala has reportedly declined significantly following a reported deal to arrange all Iranian pilgrim visas for Iraq through Shamsah. (reftel B). End comment. FORD