🔻Sarwar Abdullah
The Kurdistan Region of Iraq (KRI) has numerous sectors that could be developed to make a significant contribution to the country’s economy. For instance, service sectors such as communications, private hospitals, and private universities are already growing to the point of substituting for imports. Among these, tourism stands out as a particularly promising sector. Kurdistan is an attractive destination for tourists, boasting many strikingly beautiful places to visit and sufficient transport access, including two international airports and four formal border crossing points with Iran and Turkey. However, despite its potential, Kurdistan is not a popular tourist destination because it is part of Iraq, which is widely perceived as one of the most dangerous and insecure regions in the Middle East.
As highlighted by three interviewees—an economic commentator, a senior private researcher at a local company, and a private business owner—Kurdistan has had limited engagement with tourist networks over the past decade. Additionally, there is insufficient tourist infrastructure and a lack of local skills to support the sector. A senior researcher in the private sector noted, “We have been working for over five years on a project in a place called ‘Dukan Lake,’ which will be ready by 2027 and meet international standards. This project is being developed by the Faruq Group, a local Kurdish company.”
However, many potential tourist sites are located in areas controlled by political elites. For example, numerous hotels and motels have been built by businesspeople, but one observer believes that political figures are behind these activities. Moreover, there is little consensus among these elites on how to develop the region’s touristic potential. As a result, tourism projects are often long-term endeavors. A former minister in the Kurdistan Regional Government (KRG) stated, “Tourism is going to be a productive sector after 10 to 20 years.” However, the elites tend to prioritize short-term returns over long-term investments. An NGO expert in economic development explained, “This kind of project will take around 15 to 20 years to develop. In my view, this timeline does not align with the interests of the ruling elites. What they want are short-term projects, such as importing large quantities of foreign-made commodities, which allow them to consolidate their patronage networks, build strong militias, and control media outlets like TVs, radios, and newspapers.”
The implications of this analysis are significant for the KRG. The government is caught in a conflict between short-term gains and long-term development. In the short term, it sees an advantage in controlling economic activities to protect its power base. According to an official in the KRG government, a phrase that aptly describes this situation is “the babble acquisition of capital.” This refers to the artificial merging of political and economic spheres. As an NGO expert in economic development explained, “This situation has led to the intertwining of capital and power. Ideally, capital should be in the hands of the private sector, but in the KRI, it is controlled by political parties—more precisely, by a select few within the ruling elite.”
Consequently, the elites have treated the tourism sector as a tool to reinforce their own economic and political security rather than that of the country. By doing so, they limit the growth of an independent source of wealth that could potentially threaten their power. According to an NGO expert, the private sector has grown, but only under the shadow of the Patriotic Union of Kurdistan (PUK) and the Kurdistan Democratic Party (KDP). “This kind of private sector, which has emerged under the influence of political elites, has become an obstacle to developing an independent private sector capable of leading economic and political change,” the expert noted. Similarly, an economist observed that the influence of the ruling elites has distorted economic activities, leading to the collapse of the middle class. Instead, a class of businessmen has emerged in the KRI, closely tied to the political elites. These connections have allowed them to accumulate significant capital through trade, construction, and, more recently, the tourism industry.
The economist further identified three possible reasons for this situation: ignorance, incompetence, or greed. Specifically, the ruling elites may either (1) lack knowledge of economic governance, (2) be incapable of administering the economy effectively, or (3) deliberately maintain the status quo because it generates substantial and easily accessible rents for themselves and their associates. Regardless of the reasons, the outcome has been the emergence of a rentier economy, which poses a significant barrier to developing alternative sources of income, such as tourism, in the KRI.
In conclusion, while the Kurdistan Region of Iraq possesses immense potential for tourism development, the sector’s growth is hindered by political factors. The ruling elites’ focus on short-term gains, their control over economic activities, and the resulting rentier economy have stifled the development of an independent and thriving tourism industry. Addressing these challenges will require a shift in priorities, greater transparency, and a commitment to long-term economic planning. Only then can Kurdistan fully realize its potential as a premier tourist destination.
🔻 Sarwar Abdullah is an Assistant Professor at the College of Political Science at the University of Sulaimaniya. He holds a PhD in Politics and International Relations from the University of Newcastle in the UK. He has several academic publications on corruption in Iraq and has also published several policy articles in the Washington Institute for Near East – Fikra Forum, where he focuses on the issues of sectarianism and corruption in Iraq.