How does religious tourism support Mashhad’s economy?

Religious tourism is a cornerstone of the economy in Mashhad, driven primarily by pilgrimages to the shrine of ‘Alī al-Riḍā, the eighth imam of Twelver Shi‘ah Islam.12

The city hosts more than 20 million visitors annually, creating a robust demand for services and infrastructure. To support this influx, Mashhad offers a diverse range of accommodations, spanning from simple pilgrims' hostels to luxury hotels.12

The economic significance of the shrine is further underscored by its charitable trust, or waqf, which functions as one of the largest and wealthiest institutions in Iran. Historically, the shrine complex has served as a major economic enterprise, with its properties and shops contributing significantly to the city's financial profile. Following major renovations that began in the 1970s, the shrine has continued to serve as the central hub for the city's religious and economic life.231