Iran Budget Travel – Part 1: Flights and Money
In this article, I would like to present some information and tips, hopefully, useful for “hard budget” travelers, with limited means but nevertheless dreaming of exploring the ancient land of Persia. As it was exactly my case, I am glad to share my experience in Iran travel costs!
While most Europeans (with the notable exception of UK) can obtain VOA in Iran’s several main airports, this obviously closes the possibility to arrive in other ways – by land or sea.
If you arrange an electronic visa before coming to Iran and are not in rush – you will be able to spice up your trip by making your journey a bit more adventurous and at least having a glance of some South Caucasus countries – while using well known European low-cost airlines.
Economic flight to Iran
Wizzair already connects Kutaisi in Georgia with lots of European cities; recently also Ryanair opened some connections with Kutaisi and Tbilisi. From amazing Tbilisi, it is possible to take a bus to Tehran, transiting Armenia and admiring towns and mountain roads. The bus price recently was around 60 euro, but take note that its some 30 h trip. Georgia and Armenia are visa-free for most Western nationals.
Otherwise, there is also the Wizzair connection Budapest-Baku, often around 50 euro, but in such a case you probably need also Azerbaijan e-visa that costs some 20 euro. There are bus and train connections to Tabriz or Tehran, or you can cross the Astara border and continue by exploring wonderful Green Paradise of Caspian areas of North Iran.
In case you come from Russia, Azerbaijani Buta Airways offers good prices Moscow to Tehran, via Baku.
Otherwise, as I did myself – the cheapest flight from many European countries is with Pegasus Airlines, a Turkish near-low cost company, obviously via Istanbul Sabiha Airport. In some periods of last year, there were prices (hand luggage only) of around 80 euro, one-way ticket – even from so faraway places as Madrid.
OK, so assuming you came to Iran you will need to stay somewhere, travel inside the country try local food – the good news is that it is very low actually, as long as you stay within “Iranian Price Space” by what I mean avoiding being corralled into specific services for foreign tourists, at much higher prices.
So, let’s talk about money – and here the fun starts! There are 2 money units in practice and 2 parallel foreign exchanges! Isn’t it wonderful?
Important – because of long time USA sanctions, no foreign bank card of any kind works in Iran. You must take CASH (euro or dollars) with you.
Any online source indicates that the official money of IRI is RIAL, nevertheless, Iranians with strange determination keep using the old unit, TOMAN – that worth 10 Rials, and nearly all prices are indicated in this unit: in shops, bazaars, taxis, etc. So, it is very confusing at the beginning, especially as we use hundreds of thousands and millions (of Rials – as these are the notes) on a daily basis.
Another initial tourist trap is the exchange rate. As said, there are two, government one and the real one. The real one does not mean the black market, as you change legally in exchange shops – that pay you 3-4 times more than banks on the same street, (as the banks by law must follow the Central Bank rates)! Doesn’t look a bit strange?
Everything about Iran money (Rial)
Because of recent sanctions and a de facto economic blockade, Iran’s Rial has lost its value compared to euro and dollar. If 3 years ago 1 euro was about 40 000 Rials, in October 2019 it was around 120 000 and in mid–December 2019 it is around 150 000 Rials – or as Iranians would say 15 000 Tomans.
Depending on many domestic or international factors Rial’s exchange can jump up or down (usually up) and it is absolutely crucial to check the latest rates on https://www.bonbast.com/.
What about other, Central Bank of Iran rate – it is for local importers and for other legitimate cases. The government keeps this rate, so they can buy dollars or euros at an easier price. However, it has nothing to do with tourists; as today, this rate for 1 euro is around 46 000 Rials – so, simply do not use banks to exchange your money, go only to private exchange points.
Be careful, the trap can wait for you in first minutes of your stay in Iran – while in need to change some money in Tehran Emam Khomeini airport, and wandering around – I was approached by a nice smart looking guy offering me to exchange my euros, giving me “very good rate” some 5000 Rials over the “official bank exchange” – of course showing me on his smartphone the exchange table of Central Bank in English!
Fortunately, I knew the real rate. Take note, on the second floor of the Emam Khomeini airport there is a money exchange shop, giving you quite good rates, so go there to change for the first needs.
Very important – with this fast depreciation, nobody knows how will be Rial exchange rate in 1 or 2 weeks – so do not exchange all money at once, but little by little, following your needs.
In Tehran, most of the exchange points are located in Ferdowsi Square (also metro station) and around, mainly on Ferdowsi street. Avoid black market dealers, that hang around and will approach you – they pay LESS than exchange shops and the same can even cheat you with fake or outdated notes.
Actually, most used note it is 100 000 Rials; the next bigger (and the biggest until now) note is 500 000 Rial; 3 years ago it had a somehow serious value of quite 15 euro – and as today is worth a bit over 3 euro in free exchange… for these reasons the smallest notes of 1000 and 2000 Rial notes and especially the coins, are nowadays rarely used.
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