Iran 20-Year Perspective Document for 2025 An attempt to expand Iran's share of the global tourist population from 0.09% in 2004 to 1.5% by 2025 (final year of Perspective Document) will lead to an increase of nearly 20 million tourists per year. Meanwhile, an increase in the share of tourism revenue from 0.07% of the total global tourism revenue in 2004 to 2% by 2025 will generate nearly $25 billion annually.
The Sixth Development Plan (SDP) comprehensively supports the activities and measures taken in the Iranian tourism industry. The key provisions in SDP are as follows:
On its 2023 vision, SEMEGA will organize a complete chain of tourism activities including economic assessment and planning, design, manufacturing, development, reconstruction/refurbishment, marketing, branding and tourism attraction, management and operation (transportation, accommodation, tour guiding, recreation, entertainment, shopping, etc.) under several specialized companies. The corporate structure has been designed to operate in small cores and large networks. In fact, the majority of projects and plans devised in SEMEGA are accomplished through the establishment of subsidiaries, or contracting and outsourcing projects to companies specializing in related fields.
Given the results of SEMEGA strategic analysis (which will continue to expand over the next four years), it is recommended to adopt aggressive strategies and strengthen the essential infrastructure so as to achieve a comprehensive value chain to domestic and foreign tourists. SEMEGA has outlined the horizon ahead in three-, four-, five-, and seven-year junctures. Over the three-year horizon, SEMEGA intends to complete the infrastructure for tourism value chain (forward-vertical, backward-horizontal integration strategy). In the 5-year horizon, SEMEGA seeks target markets based on their attractiveness and its own capabilities. Moreover, the company will prepare to offer tourism service packages to target markets, including the segmentation of the tourism market (homogeneous diversity, heterogeneous diversity, horizontal diversity). In the seven-year horizon, SEMEGA plans to expand and deepen into the tourism market, and consolidate its brand in the domestic and foreign markets (market penetration strategy, product development, market development).
SEMEGA faces numerous investment opportunities ahead, which are assessed according to their values and volumes through different channels. Meanwhile, most investment proposals will be passed by the Investment Committee. The main advisory and reporting tasks of the Investment Committee are:
An investment proposal may go through the following processes before it is approved. The investment proposal is assessed through that process based on SEMEGA exclusive principles, objectives and strategies.
In recent years, SEMEGA has been making administrative decisions in its investment holdings based on principles of transparency, accountability, and integrity in view of the significance of corporate governance. The ultimate goal of SEMEGA executives is to formulate guidelines, structures, processes, cultural norms and targeted implementation of corporate governance in management processes to maintain the financial benefits, while taking the most effective steps toward success, progress and value generation for shareholders. The fundamental principles of corporate governance in SEMEGA include the formulation of decision-making processes and transparency of decisions, respect for shareholders' rights and relations, and, in general, the distribution of rights and liabilities among various stakeholders (including the board of directors, managers, and shareholders). Under the umbrella of corporate governance, SEMEGA operates based on an accountability system, social responsibility and pursuing responsibilities carried out by the company's stakeholders to promote accountability and transparency. In order to implement the principles of corporate governance, SEMEGA has set up the Audit Committee, Committee for the Adoption of Laws and Regulations, and Committee on Revenues and Rewards.
In an effort to promote accountability and responsiveness of subsidiaries toward shareholders and protect SEMEGA interests, the principles and processes of corporate governance have entirely been extended to the subsidiaries. In line with building transparency in subsidiaries, SEMEGA has outlined the information required to be disclosed, while assigning the related tasks to subsidiaries. In order to ensure the achievement of goals set in corporate governance, SEMEGA constantly monitors and adjusts the disclosure of corporate information from three perspectives: time, quality, and deviation from budget and performance.
In an attempt to accurately assess the risks facing the company and develop a practical plan to minimize the business risks (i.e. market risk, human resources risk, operational risk, investment risk, risk of fluctuations in interest rates, and the risk of amendment to laws and regulations), SEMEGA has formed several specialized committees, including Investment Committee, Conflict Committees, Financial Risk Committees, Safety and Environmental Protection Committee, and General Events and Information Monitoring Committee. These committees undertake several missions including the identification, understanding, and evaluation of different risks, expansion of risk management categories based on best performances, assessment of the effectiveness of risk management practices and procedures, promotion of a risk-conscious culture throughout the company, monitoring the investment process, prompt response to tense situations, analysis of financial events, concentration on environmental issues and awareness of public opinions.