At a Glance

• Rising fuel prices and delayed salaries have sharply curtailed local tourism.
• High fuel costs have forced transport companies to ground their buses.
• Travelers from central and southern Iraq continue visiting due to cheaper fuel at home.

A sharp doubling of gasoline prices combined with delayed July salary payments has severely restricted domestic travel within the Kurdistan Region, forcing both local tourists to stay home and transport companies to halt operations as soaring fuel costs eliminate profit margins.

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Key Statement and Focus Area

• The Head of the Tourism Companies Association in Slemani stated that rising gasoline prices are the main cause behind the increased cost of transportation and the decline in domestic tourism.
• Ibrahim Majid, Spokesperson for the KRG Tourism Board, noted that they have not yet received any official feedback from tourist checkpoints or centers indicating a decline in business due to gasoline prices.

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Ata Anwar, Head of the Tourism Companies Association (also known as the Union of Aviation and Tourism Companies), stressed that delayed salaries of public sector employees and high fuel costs have disrupted all sectors of life and reduced market activity.

Anwar said bus owners are unwilling to operate due to expensive gasoline, as they are left with nothing but exhaustion.

According to him, tourists from Baghdad and other Iraqi cities continue to come to the Kurdistan Region due to the stability of fuel prices in their areas.

Meanwhile, Ibrahim Majid, Spokesperson for the Kurdistan Region Tourism Board, emphasized that currently the majority of tourists come from central and southern Iraq.

He added that if any official complaint or request is submitted by companies, they will coordinate with the relevant authorities to resolve the issues.

FYI

Historically, the Kurdistan Region has been Iraq’s primary tourism hub due to its cooler mountain climate, waterfalls, and scenic resorts.

During summers and holidays, hundreds of thousands of local Kurds traditionally travel within the Kurdistan Region to escape urban heat and spend their disposable income on domestic leisure.

However, the current economic landscape has severely disrupted this traditional travel pattern.

The gasoline prices reached critical levels in recent weeks following the failure of five KRG market control measures.

With the crisis now dependent on Baghdad, lawmakers propose increasing crude oil allocations or handing over the Region’s oil portfolio to SOMO in exchange for subsidized fuel.

Exacerbating the fuel crisis, a severe liquidity crunch has triggered chronic public sector salary delays, forcing local families to completely cut leisure travel from their budgets to prioritize basic living expenses.

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