Reasons behind the rise in Nowruz pilgrimage costs to Atabat explained

The Director General of Atabat at the Hajj and Pilgrimage Organization has attributed the increase in pilgrimage costs to the shift to market-rate currency for travel expenses.

Mohsen Nezafati, speaking to the Hajj and Pilgrimage Organization's news portal regarding the new cycle of pilgrimages to Atabat, stated that the current period of departures began on 12 March and will continue until 15 June. He noted that for this period, the calculation of pilgrim travel costs is based on the market exchange rate.

He explained that following discussions with the Central Bank, it was announced that one of the reasons for the withdrawal of the subsidised exchange rate for Atabat pilgrimages was the decline in oil prices and the subsequent reduction in government foreign currency revenues.

The Director General of Atabat at the Hajj and Pilgrimage Organization identified another reason for the lack of subsidised currency allocation as the nature of pilgrimage registration. He stated that pilgrims do not make advance bank deposits for Atabat trips, unlike Hajj and Umrah pilgrims who deposit funds years in advance. Consequently, the government feels committed to allocating subsidised currency to the Hajj and Pilgrimage Organization for Hajj and Umrah travel, as these funds are held within the country's economic system.

Nezafati added that a similar situation occurred during the Nowruz departures last year, when it was decided that market-rate currency should be used for Atabat travel costs. However, as the country's currency situation improved over the past nine months, subsidised currency was once again allocated to Atabat pilgrimages in cooperation with the Central Bank.

He stated that since the Atabat pilgrimage is not a mandatory religious obligation like Hajj, the government is currently prioritising the allocation of subsidised currency to higher-priority areas, such as the import of medicine—particularly specialist drugs—medical equipment, and other essential items.

This official from the Hajj and Pilgrimage Organization noted that, despite current constraints and pressures, the Central Bank continues to provide 200 dollars of travel currency at the subsidised rate to Atabat pilgrims.

The Director General of Atabat at the Hajj and Pilgrimage Organization estimated the total increase in the cost of Atabat pilgrimages resulting from the lack of subsidised currency allocation to be between 10 and 12 per cent.

Mr Nezafati stated that the minimum cost for a land-based trip to Atabat from Tehran is 1,020,000 tomans, while the maximum price for an air-travel package from Tehran is 1,660,000 tomans.

He noted that Nowruz departures for Atabat began on 15 March and will continue until 29 March, adding that the volume of pilgrimages during the Nowruz period will increase by more than 65 per cent compared to the preceding period.

Concluding his remarks, the Director General of Atabat at the Hajj and Pilgrimage Organization stated that the price of airline tickets on the open market for Atabat travel during the Nowruz holidays has risen to 1,200,000 tomans. He highlighted that, in contrast, the Hajj and Pilgrimage Organization is calculating airfares for Atabat travel during the Nowruz period at the early 2014 rate of 430,000 tomans.