Tourism governance and political economic control: Public policy, SMEs, and digital regulation in Iran and Türkiye

Abstract

Governments across the Middle East frequently promote tourism as a driver of national development, yet local communities often absorb its costs while receiving limited returns, a pattern shaped by the political distribution of tourism opportunities. Existing research has given little attention to why local communities and small and medium sized enterprises (SMEs) remain marginal within tourism policymaking. This study compares Iran, a petro state, and Türkiye, a tourism dependent economy, to examine how public policy positions local communities within tourism development. Drawing on a qualitative archival methodology, it analyzes national development plans and tourism policy documents from both countries through qualitative content analysis conducted in NVivo across four dimensions: national development planning, community and private sector participation, the relationship between SMEs and state affiliated organizations, and digital governance. The findings show that governments do more than regulate tourism; they shape access to tourism markets, digital infrastructure, institutional support, and investment opportunities through a pattern of selective market inclusion. In both countries, policymakers prioritize state interests over community level benefits, reflecting a form of state capitalism that channels resources toward politically connected actors and quasi governmental organizations while leaving SMEs and local communities with limited institutional and digital support. Although Iran and Türkiye differ substantially in their political economic structures and dependence on tourism revenue, the comparative analysis demonstrates that contrasting systems can converge on similar governance outcomes. The study extends political economy debates by conceptualizing tourism policy as an instrument through which states allocate market access, regulate participation, and reproduce political authority.