NAJAF INTERNATIONAL AIRPORT EXPANDING RAPIDLY

UNCLAS SECTION 01 OF 03 BAGHDAD 000502

SIPDIS
SENSITIVE

E.O. 12958: N/A
TAGS: EAIR ETRD EINV IZ IR
SUBJECT: NAJAF INTERNATIONAL AIRPORT EXPANDING RAPIDLY

SENSITIVE BUT UNCLASSIFIED. PLEASE PROTECT ACCORDINGLY.


1. (SBU) SUMMARY: Najaf Airport is expanding rapidly to
accommodate the demand from Shi'a pilgrims coming to religious
shrines in the province. Religious pilgrims visiting the province
have increased dramatically over last year, and most pilgrims stay
for at least a week. Currently the bulk of the airport's business
is from charter flights coming from Iran, Kuwait and Dubai.
Issuance of visas on arrival for 10 days began in early February.
The Governor, Investment Commission officials, and Chamber of
Commerce representatives all seek increased investment in several
sectors of the province, with housing and tourism infrastructure top
priorities. Najaf, as a Shi'a cultural center, believes it can
attract millions more tourists in future. However, the Office of
the Transportation Attach notes that the first passenger flights
began more than six months behind schedule, and that the airport has
suffered from poor management. END SUMMARY.

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Al Ashraf International Airport - Najaf
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2. (SBU) During a visit by Senior Advisor Gordon Gray and econoff
to Najaf on February 23, we received a tour of Al Ashraf
International Airport Najaf. The airport, which opened in November
2008, was clearly growing rapidly, with construction work ongoing
for the completion of the main terminal building. The airport
receives charter flights from Dubai, Beirut, Tehran, Amman, Kuwait
and Mashad, consisting mainly of Shi'a pilgrims. (Note: The largest
carrier presence at Najaf is from Iran, currently 14 flights per
week, which is expected to increase significantly. Iran operates
under a bilateral agreement with Iraq with scheduled frequencies
though not a published schedule. Najaf currently receives
three-four flights a day. End note.) Sabre International, which
manages the security contract for the airport, said that passengers
go through seven layers of security screening. (Note: Sabre
International took over security at the end of January when the
former company, Global International, had a contract dispute with
the airport authorities. Although the handover has gone as well as
can be expected, Sabre has had to get up to speed quickly. End
note.) The total screening and boarding process takes about three
hours. Najaf Airport won the "Iraq Reconstruction" prize in 2008.


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Pilgrim Tourism Increasing Visa-on-Arrival Issuance
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3. (SBU) Airport and business officials noted a dramatic increase
in tourism over the last year. Visitors come to visit more than 40
Shi'a religious shrines (including the shrine of Imam Ali) in Najaf,
during 40 special holidays and occasions. An average of 3,000
pilgrims visit the Imam Ali shrine each day during the week, with
the number rising to 10,000 on Thursdays and Fridays. Tourists may
now receive a visa-on-arrival for up to 10 days. Overstays are
subject to a fine per day of overstay. While the Ministry of
Interior granted permission in November 2008 to issue
visas-on-arrival, the program only started at Najaf Airport in early
February. Most pilgrims stay at least a week, first visiting the
shrine of Imam Ali, then moving to other religious sites. Airport
officials told us that while earlier pilgrim traffic was mainly from
Iran and the region, now Shi'a visitors are coming from Europe and
the U.S. as well. Najaf has recently received visitors from Iran,
India, Pakistan, Afghanistan, the Gulf states, the U.S., the U.K.
QIndia, Pakistan, Afghanistan, the Gulf states, the U.S., the U.K.
and the Netherlands. Najaf officials believe that the province has
the potential to receive millions of tourists a year.

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Airport Expansion
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4. (U) Najaf officials regard the airport as a key to the
province's development and expressed gratitude for USG support. The
provincial government has spent $80 million on the airport and its
facilities thus far. They hope that the airport can eventually
become a cargo center as well, but needs cold storage facilities.
When the new terminal is completed in one-to-two months, it will add
five additional gates and increase capacity to thirty flights per
day. The airport has only handled narrow-bodied jets until now, but
airport officials hope to get wide-bodied jet capacity eventually.
(Note: The runway is not yet approved for wide-body aircraft due to
weight limits. This is not expected to change in the near term.
End note.)



5. (SBU) Sabre International representatives said that the facility
was still "essentially a construction site, operating as an
airport," but that it should improve soon. Airport officials also
told us that Najaf needs more support from the Iraq Civil Aviation
Authority (ICAA) to obtain approvals for more flights. (Note: While
ICAA is supportive of additional services at Najaf, it wants to

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encourage such service through the usual framework of bilateral or
multilateral aviation agreements. Such agreements provide the ICAA
with a better understanding of demands placed on the airport and
also provide a vehicle for securing reciprocal rights for Iraqi
Airways into other countries. In addition, it is important for the
ICAA to balance the number of additional flights with the airport's
capability to safely support those flights. Based on observations
of Office of Transportation Attach staff, Najaf airport authorities
do not have a good understanding of these agreements. End note.)



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Getting Up to International Standards
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6. (SBU) Iraq is a member of the International Civil Aviation
Organization (ICAO),and Najaf Airport seeks to follow international
standards in all areas of operations and is duly licensed by ICAO.
Air Traffic Control uses international standard satellite
technology, but there is still a shortage of qualified Air Traffic
Controllers. (Note: ICAA has provided Air Traffic Controllers to
support Najaf operations since the opening of the airport.
Contracted Air Traffic Controllers failed a basic English test,
despite airport authorities assurances that they were language
qualified. English is the international language of Air Traffic
Control. End note.) Najaf airport is trying to recruit Air Traffic
Controllers from abroad. Airport officials noted that contact with
Balad was often problematic. The Air Traffic Control tower was
often blind until the aircraft contacted the tower. (Note: Najaf
Airport was issued a temporary operating certificate with the caveat
that it would install navigational aids and communication with
Balad. To date, it has not complied. Najaf Airport will not
receive a full instrument flight rules certificate until both
requirements are fulfilled. End note.)

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Optimism and Obstacles
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7. (SBU) Najaf officials are clearly aggressive and enthusiastic
about airport expansion. The Najaf International Airport is making
progress and is a vital element of the reconstruction of Najaf and
indeed also of southern Iraq. However, the airport still needs the
advice, oversight and sometimes daily badgering provided by the USG.
The recent security contract dispute shows that although progress
has been made, the airport is still nascent and requires guidance.
In addition, based on numerous on-site visits by the Office of the
Transportation Attach, the development of Najaf Airport has been
poorly managed from its inception. This has resulted in delays,
missed opportunities, poor relations with the Iraq Civil Aviation
Authority, and lost revenue. The Transportation Attach has
recommended that Najaf Airport contract with a qualified airport
management firm.

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More Tourism Infrastructure Needed
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8. (SBU) Provincial officials want Najaf to be a key gateway to
Iraq. Najaf's 4,024 hotel beds only meet 54 percent of current
demand, and demand is rapidly rising. Hotels are only of one- to
two-star quality. Higher quality hotels are needed. The price of a
hotel room has jumped from an average of $16/night last year to
$75/night currently to meet increasing demand. Najaf envisions
several 3-star hotels, along with good restaurants and
transportation companies (buses, taxis). Chamber of Commerce and

Investment Commission representatives boasted that Najaf, as an
Islamic cultural center, would lead the recovery of south and
QIslamic cultural center, would lead the recovery of south and
south-central Iraq. They told us they were even reviewing an old
U.K. plan from the 1950s which included a rail-link to the
Mediterranean. Chamber of Commerce and Investment Commission
representatives said that they had received over 70 inquiries of
investor interest for Najaf from the U.A.E. and other regional and
international investors. They requested additional assistance from
the U.S. for training in marketing and investor outreach.

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Other Sectors Also Seek Investment
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9. (SBU) The Najaf Construction Committee was set up in 2005 in
part to help attract investment to the province. During our visit,
we received a power-point presentation with information on various
Najaf districts and key sectors seeking investment, including the
health sector: Najaf wants to expand its hospital beds from 1,200 to
3,000. Tourism is another sector targeted for expansion: in
addition to the shrines, Najaf offers historic sites (Al Hirah and
Al Manatherah). Najafis want to build a resort at Abu Najim Hoor
with an amusement park and recreation facilities. They would also
like to create a large mall, a floating restaurant and a children's

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park. Potential industrial sectors include minerals that could be
used for glass manufacturing and iron and steel. The agricultural
sector offers agribusiness and food processing opportunities, but
has been neglected for many years.


10. (SBU) Individual Chamber of Commerce members noted that trading
companies would like more access to higher-quality products from
Gulf neighbors, Europe and the U.S. Iranian products are easy to
get, but of poor quality. They requested help with a trade show for
U.S. companies, and licensing arrangements for U.S. goods. One
businessman noted that he comes from an old trading family that goes
back to the 1920s and would like more trade opportunities. One
representative suggested a permanent exhibition for Najaf's products
and services. Several representatives noted that all areas of the
services sector needed a boost to support Najaf's tourism including
hotel services, transportation, restaurant, banking and travel.
Najaf is not only important to Iraq, they stressed; it is a symbol
for the entire Shi'a world.
BUTENIS