Financial Sustainability of Small and Medium-Sized Tourism Enterprises in Iran: Challenges and Strategic Responses

Small and medium-sized tourism enterprises (SMTEs) play a vital role in Iran’s tourism industry by supporting local economies, preserving cultural heritage, and creating employment opportunities, yet their financial sustainability is frequently undermined by volatile macroeconomic conditions, operational inefficiencies, and institutional gaps. This paper examines the key challenges that affect the financial stability of Iranian SMTEs and evaluates the strategic responses adopted to mitigate them. Drawing on literature, empirical data, and comparative evidence from similar emerging economies, the study identifies four principal domains of challenge: macroeconomic and regulatory instability, fluctuating tourism demand, rising operational costs, and limited managerial and institutional capacity. The findings reveal that inflation, currency depreciation, and regulatory unpredictability remain persistent external threats, while seasonality and dependence on international tourism exacerbate demand volatility. At the enterprise level, high costs of utilities, labor, and maintenance, particularly for heritage properties, significantly reduce profitability. Furthermore, weak financial management practices, limited adoption of digital technologies, and restricted access to affordable credit constrain resilience. In response, many SMTEs diversify into domestic tourism markets, embrace digital marketing and booking platforms, adopt cost-saving measures, invest in staff training, and join cooperatives or local networks to pool resources. While these strategies enhance adaptability, their effectiveness is contingent upon broader institutional reforms and supportive policy environments. The paper argues that sustainable progress requires a dual approach: enterprises must continue to innovate and diversify, while policymakers should stabilize regulatory frameworks, expand access to credit, incentivize digital adoption, and strengthen training programs. Ultimately, the financial sustainability of SMTEs in Iran depends on balancing entrepreneurial resilience with systemic reforms that address structural barriers and enable long-term growth.

کلیدواژه ها:

Financial sustainability ، small and medium-sized tourism enterprises ، Iran ، strategic responses ، resilience.