According to the Public Relations and International Affairs of the Kish Free Zone Organization, Mohammad Kabiri, in a meeting with agents and operators of Kish Island tour operators, expressing gratitude for the cooperation of economic activists in recent months, said: The Kish Free Zone Organization has tried during this period to find practical solutions to reduce the pressure on businesses.
He emphasized the necessity of result-oriented actions and added: In difficult conditions one cannot be limited to stating constraints and must find executable solutions to overcome problems. Accordingly, topics are being pursued in several areas including taxation, social security, financing and demand stimulation.
The CEO of the Kish Free Zone Organization, stressing the need for responsiveness and commitment to the promises made, asked economic actors to provide their feedback on the results of the actions.
Pursuing Social Security Issues and Banking Negotiations
Kabiri, referring to actions taken in the field of social security, said: The social security problems of Kish businesses have been conveyed to the President's Office for special review and follow-up and are being pursued until a final result is achieved.
Regarding financial follow-ups to secure credit, he added: In the field of financing, multilateral and simultaneous negotiations have been held with about six banks and financial institutions and continue.
The CEO of the Kish Free Zone Organization stated: The organization's effort is that the results of negotiations and implementable plans be transferred to private sector entities such as the Kish Institute for Sustainable Development and Prosperity so that their management and execution be led by the private sector itself; because measures formed in the private sector, due to having a defined system of stakeholders, are more enduring and continue despite changes of managers. In this path, the role of the organization will be guiding and facilitating.
Providing Supportive and Employment-Oriented Facilities
He said increasing the resilience of businesses and stimulating demand are the two main axes of the organization's programs and said: On the supply side, due to the reduction of banking rank and credit of some economic actors in recent conditions, one of the negotiating points with banks is to find a solution to remove or reduce this problem.
The CEO of the Kish Free Zone Organization, referring to reviewing the possibility of businesses using employment-oriented facilities of the Ministry of Economic Affairs and Finance, added: In this scheme, granting facilities based on the number of employees has been considered; so that for each job, an amount of about 44 million tomans in facilities at a 23 percent rate is envisaged. Accordingly, an entity such as a hotel with 50 staff, if meeting the necessary conditions, can use facilities of more than two billion tomans.
Kabiri also announced the design of another support program within the organization's authorities aimed at creating added value and supporting economic activities and said its details will be announced after finalization.
Contractual Facilities in Line with Declaring Special Conditions
Referring to the declaration of special conditions aimed at reducing pressure on affected businesses and creating grounds for agreement between owners and tenants, he emphasized the need to address shortcomings in information dissemination in this regard so that economic actors can benefit from the advantages of this decision.
The CEO of the Kish Free Zone Organization referred to the organization's supportive actions in the sectors under its control and said: In some contracts of operators in marine recreation and restaurants whose direct contracting party is the Kish Free Zone Organization, a five-month increase in the operation period (without collecting new rents during this period) has been foreseen and applied. Private owners are also requested to provide maximum cooperation with their tenants in the form of understanding and agreement.
Demand Stimulation Plans and Credit Facilities
Kabiri, explaining the demand stimulation programs, said: A five-thousand-billion-toman financing scheme in online facilities aimed at providing credit at a reasonable rate is being pursued. Our suggestion is that tourism operators, especially agencies and tour sales entities, conduct the necessary negotiations to use this capacity so that the purchase of Kish travel services by tourists can be made possible through it.
He also announced plans to provide tourism purchase facilities to employees based on the island and said: In negotiations held, the overall agreement on providing 300 million-toman facilities to about three thousand employees of agencies based in Kish has been reached. If banking and executive processes are finalized in the coming months, this credit will be allocated solely for the purchase of goods and for purchasing tourism and restaurant services on the island and could inject close to one thousand billion tomans of new demand into the Kish market.
The CEO of the Kish Free Zone Organization referred to reviewing new credit models using the experience of cooperation with Blue Bank (which previously had a capacity close to two thousand billion tomans) and said: Several other entities are also reviewing and advancing similar plans and the management of these programs is being done so that, without creating negative competition, all related sectors benefit from this capacity; because the combination of tourism credits and resident purchase facilities can simultaneously help market vitality and increase the purchasing power of employees and residents of Kish.
Strengthening Advertising, Developing Regional Tourism and Protecting the Kish Brand
He emphasized the necessity of strengthening advertising and holding targeted events in consultation with the private sector so that, while observing considerations, they help reintroduce the Kish brand domestically and internationally.
Recalling the previous experience of developing the Iraqi tourism market (whose inbound flights at one time increased to 14 flights per week before recent conditions), Kabiri stated: These figures relate to past experience and do not reflect the current flight situation; nevertheless, a targeted move towards attracting tourists from regional countries such as Iraq, Lebanon and Oman and reviving Kish’s position in the Persian Gulf tourism market is a necessity.
The CEO of the Kish Free Zone Organization concluded by stressing that preserving the credibility and image of Kish is a common red line for all economic actors and managers and said: No individual or entity's performance should be allowed to damage the Kish brand and the organization stands alongside the private sector as the field leader of the island's economy so that, with joint planning, the grounds for full recovery of Kish’s economy and tourism are provided.